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Take from http://gcc.gnu.org/ml/gcc-patches/2007-11/msg00948.html

2007-11-17  Richard Guenther  <rguenther@suse.de>

	PR middle-end/34130
	* fold-const.c (extract_muldiv_1): Do not move negative
	constants inside ABS_EXPR.

	* gcc.c-torture/execute/pr34130.c: New testcase.

Index: ./gcc/fold-const.c
===================================================================
*** ./gcc/fold-const.c	(revision 130238)
--- ./gcc/fold-const.c	(working copy)
*************** extract_muldiv_1 (tree t, tree c, enum t
*** 6095,6100 ****
--- 6095,6103 ----
              }
            break;
          }
+       /* If the constant is negative, we cannot simplify this.  */
+       if (tree_int_cst_sgn (c) == -1)
+         break;
        /* FALLTHROUGH */
      case NEGATE_EXPR:
        if ((t1 = extract_muldiv (op0, c, code, wide_type, strict_overflow_p))
Index: ./gcc/testsuite/gcc.c-torture/execute/pr34130.c
===================================================================
*** ./gcc/testsuite/gcc.c-torture/execute/pr34130.c	(revision 0)
--- ./gcc/testsuite/gcc.c-torture/execute/pr34130.c	(revision 0)
***************
*** 0 ****
--- 1,12 ----
+ extern void abort (void);
+ int foo (int i)
+ {
+   return -2 * __builtin_abs(i - 2);
+ }
+ int main()
+ {
+   if (foo(1) != -2
+       || foo(3) != -2)
+     abort ();
+   return 0;
+ }