From a growth perspective, General
Motors' (GM) results were extremely disappointing. Revenue fell by 2.4% and
profits fell by 13%. Most of the losses were propelled by declining revenues
from European operations, especially the Opel unit in Germany. Bears point out
that Ford (F), facing the same problems in Europe, has managed to post a rise
of 17% in EPS. However, one needs to understand that GM has been restructuring
its Opel unit under its Interim Vice Chairman Stephen Girsky. Therefore, the
costs associated with restructuring have adversely impacted profits. The stock
is only trading at a forward price to earnings multiple of 6x.
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