General Motors Is Making The Right Moves to Get Better - InvestorGuide
General Motors ( GM ) shares have dropped 10% this year as the company is facing a number of challenges. Meanwhile, GM South America reported a negative adjusted EBIT of $0. 1 billion, which was flat as compared to the second quarter of the last year. In fact, GM's China retail sales have increased 4. 4% during the first six months of the year, with demand for SUVs such as the Buick Envision remaining strong. However, GM had posted positive growth in earnings last quarter, which was driven by an increase in the volume sales of its vehicles, especially in North America. Its product mix was strong in North America, with the company selling a strong number of trucks and SUVs. Meanwhile, in Europe and South America, GM's favorable pricing policy helped the company reduce its losses. GM returned a ROIC of 23. 4% last quarter, which demonstrates its disciplined capital allocation. The good thing is that GM should be able to continue returning value to shareholders as its free cash flow and Return on Invested Capital increased nearly 70% and 60%, respectively, last quarter. Source: www.investorguide.com
