GM slashes annual profit estimate

SOUTHFIELD, Mich. -- General Motors Corp., the world's biggest automaker, forecast its largest quarterly loss since 1992 as Toyota Motor Corp. takes market share in North America and near-record fuel prices erode sales of sport utility vehicles.

GM, based in Detroit, yesterday predicted a first-quarter loss of $1.50 a share, slashed its estimate for annual profit by more than 50 percent and restated a 2004 fourth-quarter profit as a loss. GM shares dropped 14 percent, the biggest decline since 1987, and bonds plunged as Standard & Poor's lowered its outlook on the company to negative.

''General Motors North America is our 800-pound gorilla, and today's announcement shows how important it is to get it right," chief executive Rick Wagoner said yesterday in a conference call with investors.

GM shares dropped $4.71 to $29.01 in New York Stock Exchange composite trading. Rising healthcare and debt costs are combining with dwindling sales to push GM into a loss.