GM cuts its annual dividend by 50 percent

February 7, 2006

DETROIT (Reuters) – General Motors Corp. on Tuesday cut its
dividend for the first time in more than 13 years, as it
struggles to save more cash after a year of billions of dollars
in losses.

GM’s board of directors decided to cut its annual $1.1
billion dividend by 50 percent to $1.00 a share.

The world’s largest automaker lost $8.6 billion in 2005, as
it struggled with high labor and raw material costs, loss of
U.S. market share to foreign rivals, and sluggish sales of
sport utility vehicles — its biggest generator of profits.

Source: reuters

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