GM taking $39 billion charge in 3Q

General Motors Corp. said Tuesday it will record a $39 billion net noncash charge for the third quarter because of negative changes in its historical three-year cumulative loss.

The charge will affect reported net earnings, which are to be announced this morning, the company said.

Another factor was weakness at GMAC Financial Services and its mortgage business, Residential Capital LLC, or ResCap, the statement said.

GMAC Financial Services on Thursday posted a $1.6 billion loss for the third quarter. It included a $2.3 billion loss at ResCap, which offset profits elsewhere.

•Revlon Inc., the cosmetics company controlled by financier Ron Perelman, dramatically narrowed its third-quarter loss on higher sales and benefits from a restructuring program initiated last year.

The company, which markets Almay cosmetics and Charlie perfume, said Tuesday it lost $10.4 million, or 2 cents per share, for the three months ended Sept. 30 versus a loss of $100.5 million, or 24 cents a share, a year ago.

Revenues rose 11 percent to $339.7 million from $305.9 million in the year-ago period.

•Food processor Archer Daniels Midland Co. surprised Wall Street on Tuesday by reporting stronger-than-expected profits and surging sales despite a slowing of the ethanol boom, demonstrating its strength in oilseeds processing and agricultural services. Its stock leaped almost 7 percent.

ADM’s first-quarter earnings of $441 million were only 9 percent more than in the same period a year ago. But the fact it was able to shatter earnings and sales forecasts despite a drop in prices for ethanol, which had propelled its growth in recent quarters, and higher corn prices impressed industry analysts.

Executives of the Decatur, Ill.-based company said that ethanol prices are expected to fall further in the second quarter, and noted that the current supply glut has caused other companies to put ethanol projects on hold. But they said they are pushing ahead with construction of additional ethanol plants, able to withstand the downturn because of their diversified operations.

•Beer giant Molson Coors Brewing Co. on Tuesday reported a dip in third-quarter net income because of one-time charges that offset a 7 percent increase in sales.

The company’s Canadian and U.S. operations both turned in stronger results in sales to retail outlets, while the European business was affected by rainy weather and newly enacted smoking bans.

The Denver-based brewer showed overall improvements in brand strength, pricing and foreign currency rates, Chief Executive Officer Leo Kiely said.