General Electric (GE, Financial) is a diversified technological company that provides financial services to its customers. GE is building the world by providing capital, expertise and infrastructure for a global economy. GE Capital has provided billions in financing so businesses can build and grow their operations and consumers can build their financial futures. GE is engaged in building appliances, lighting, power systems and other products that help millions of homes, offices, factories and retail facilities around the world work better. GE has paid a dividend each quarter for over one hundred years.
Plans to grow
GE expects that in 2015 earnings from industrial operations would range from $1.10 to $1.20 a share. It plans to distribute $40 billion to its shareholders in 2015 and 2016 in the form of dividends and share buybacks. The company has planned to increase its dividend by 5% in 2015. GE expects its organic industrial growth to be around 2%-5%. In 2015, GE is all set to concentrate on its core businesses. It is planning to invest $2 billion in Africa by the end of 2018. CEO Jeffrey Immelt feels that it is one of the most promising markets. Immelt feels that this investment will improve supply chains and develop facilities. This is going to boost jobs, too.
GE works in Ghana to support economic growth through infrastructure development especially in the power, healthcare and transport sectors. GE is working with Ghana’s leaders, including the country’s energy minister, on plans to develop the critical infrastructure needed for continued energy management in the country.
GE is expected to benefits from its Alstom acquisition. This acquisition is going to boost its lighting appliances segment.
Outlook
GE invests 5%-6% of revenue into new products every year. Technology creates competitive advantage and margins. They spread ideas through our Global Research Center with six locations around the world. Most countries want the same things –competitive capabilities that create jobs, sense of pride and progress that lifts all people up. They want to tap into the global marketplace for progress, ideas and the capability to export their goods. GE is an excellent partner as countries grow. For instance, it opened a new business-process center in Saudi Arabia that will employ thousands of local women. This is good for GE, while making it an integral part of the Kingdom's economy. The company has an outlook for 17 percent margins in 2016.
To end
Investment in infrastructure is expected to reach $60 trillion by 2030. Success requires technology, services and execution delivered at scale across a massive global footprint. With more than $100 billion in revenue and nearly 16% margins, we are the largest and most profitable infrastructure company in the world. The company is aiming for infrastructure earnings to be 70% of GE's total.
GE has its presence felt in about 100 countries across the globe. It has a history of acquiring a number of public and private companies in the recent few years, the most publicized being the acquisition of Lufkin Industries Inc. (LUFK, Financial). This acquisition resulted into huge synergic benefits. The company has planned its strategies very well throughout. It boasts of diversified investments across the globe. It is surely a stock that the investors must consider adding to their portfolio. We all know that a company that plans robust strategies in advance is likely to continue to grow. GE is just such a company, and it is not going to let its investors down. Since the European markets are recovering, more upside can be expected from GE.
Over the past decade, GE has tripled its profits from growth markets In 2013, revenues of $1 billion or more included expanding markets of Algeria, Indonesia and Turkey. GE has five core businesses and healthy industrial growth. The drop in oil prices should not be a concern for this company.
GE is on the verge of reshaping the company portfolio. GE is building the world by providing capital, expertise and infrastructure for a global economy. GE Capital has provided billions in financing so businesses can build and grow their operations and consumers can build their financial futures. GE is a highly efficient company and has been known for years for its profitability. It boasts of a very good valuation and is expected to create greater shareholder returns.
