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GM EARNS $889 MILLION IN 2ND QUARTER

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General Motors Corp., continuing the U.S. auto industry's show of strength, reported Thursday second-quarter earnings of $889 million, or 92 cents a share, more than a complete turnabout from the $703 million loss reported in the year-ago quarter and a bit better than analysts' expectations.

Analysts had expected GM earnings to come in between 85 cents and 90 cents a share.GM, the world's largest automaker, was the last of the Big Three U.S. auto companies to release second quarter results.

Ford Motor Co. and Chrysler Corp. reported impressive second-quarter showings Wednesday, with Ford earning $775 million, more than double its year-ago profit, and Chrysler posting a profit of $685 million, up nearly 300 percent over the year-ago quarter.

"The auto industry is clearly in recovery," said Arvid Jouppi, auto analyst for Keane Securities in Detroit. "Now that that has been firmly established, the auto industry will lead other U.S. industries to recovery, and I expect to see a fairly good economy in this country by the end of the fourth quarter."

All three automakers exceeded analysts' earnings expectations for the second quarter, but the market was not impressed. GM was unchanged at $47 in early morning trading on the New York Stock Exchange. Chrysler was up 50 cents, to $43.125, and Ford was up 37.5 cents to $52.

GM's income improved $1.6 billion compared with the second quarter of 1992, which included a restructuring charge of $749 million at GM's Hughes Aircraft Co.

Sales and revenues for the quarter totaled $36.7 billion, up nearly 4 percent from $35.3 billion in the year-ago quarter.

"Our continuing improvement at General Motors is demonstrated by the second-quarter results," GM President John F. Smith Jr. said.