General Electric (GE, Financial) recently released its 2015 shareholder letter, and Chief Executive Officer Jeff Immelt had an overall positive view on the company’s past year and future growth.
In 2015, the company reported total revenue of $117.4 billion with revenue from industrial sales at $106.2 billion and revenue from GE Capital at $10.8 billion. In 2015 the company significantly decreased its GE Capital position to focus more directly on being a leading industrial technology business. This strategic focus resulted in the acquisition of Alstom and the divestiture of many of GE’s financial services businesses.
In 2015, operating earnings for GE were up 17% to $1.31 per share, and this growth reflected the increased focus and strength from industrials. As the company increases its already prominent focus on industrials and delves deeper into its aspiration to be a high-tech leader in the industry, its outlook for 2016 shows the results of its strategic goals. For 2016, GE expects annual earnings per share to increase to between $1.45 and $1.55 per share and free cash flow to increase to between $29 billion and $32 billion.
In a video addressing the company’s 2015 results, Immelt spoke in more detail about General Electric and what shareholders can expect in 2016.
Disclosure: I do not own any shares of General Electric.
