EPS Marches Higher As General Motors Exits Europe
During 2017, U.S. automakers such as General Motors (NYSE: GM) and Ford (NYSE: F) have had to contend with stagnating demand in the domestic market. In the first half of the year, U.S. auto sales fell 2.1% year over year.
Despite facing headwinds in its most important region, General Motors continued to increase its adjusted earnings per share (EPS) last quarter. GM's controversial decision to exit the European market was the key factor that enabled the General to keep earnings growing.
In the second quarter, General Motors began to reduce its production on a year-over-year basis (a trend that will accelerate in Q3) in order to keep supply in line with demand. In North America -- GM's largest and most profitable region -- vehicle wholesales were down by 110,000 units year over year last quarter.
Source: Fool.com
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