GM cuts losses
Detroit: Even though as General Motors (GM) Corp registered its sixth straight quarterly loss with more than $1bn in restructuring-related charges, its losses clearly seem to falling with a turnaround imminent.

The company reported a loss of $323m, or 57 cents per share, compared with a loss of $1.3bn, or $2.22 per share a year earlier. Revenue rose to $52.2bn from $45.8bn a year earlier.

Excluding one-time items, but including a $1bn pre-tax healthcare charge, GM lost $529m, or 94 cents a share. Excluding that health-care charge, equivalent to $1.20 a share, GM would have posted a profit of 26 cents a share. GM posted a gain of just over 4 per cent in global vehicles sales, but also showed a drop of 5 per cent in the US market, where its strategy depends on the success of a new line of higher-margin sport-utility vehicles.
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BA slashes fare to Europe by up to 50 per cent
London: British Airways (BA) has cut fares by up to 50 per cent to more than 65 European destinations upping the ante against budget carriers such as Ryanair.

BA's last full-year results showed that the carrier was losing money on short European routes where Ryanair, Europe's largest budget carrier, and others offer stiff competition.

Recently BA announced higher fuel surcharges on long flights, while keeping its £8 ($14.29) surcharge on shorter routes such as those in Europe.

Unlike BA, Ryanair does not impose fuel surcharges and is not hedged on its fuel buying, leaving it fully exposed to soaring crude prices that hit new highs on Thursday.

A BA official said one-way fares would begin at £29 ($51.79) and would remain at such levels for the long term.

BA shares were down 0.59 per cent at 338-1/2 pence.
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Mittal to bid for Arcelor in two weeks
Brussels: Mittal Steel Co, promoted and owned by London-based Lakshmi Mittal, plans to launch its $23 bn hostile takeover offer for rival Arcelor SA in two weeks.

Mittal is facing stiff opposition to the bid from Arcelor, which is the world's second biggest steelmaker and is listed on the Luxembourg, Brussels, Paris and Madrid stock markets.

Arcelor has been insisting that the price offered by Mittal is too low.

In a move to head off the Mittal bid, Arcelor said it was raising its dividend payout to a total of five billion euros to shareholders and instead of the previously proposed 1.20 euros a share for 2005, Arcelor would pay 1.80 euros a share as part of moves to secure support from its shareholders in the bitter takeover battle.
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