The General Electric (NYSE:GE) Success Story

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By Stefan Larson on October 18, 2014 Company

General Electric (NYSE:GE) is an American multinational firm. It’s a recognized brand name when it comes to Energy, Technology infrastructure and Consumer and Industrial segments. In 2011, it stood 26^th in terms of gross revenue according to Fortune 500, and is the fourth largest firm according to Forbes Global 2000. It has been labelled as the company leaders, best global brand, green company, most admired and most innovative company.

In recent news General Electric (NYSE:GE)’s third quarter earnings just came to light. Per share earnings rose up by 6% when compared to last year at $0.38. Revenues boosted by 1% from last year to 36.2 billion for the quarter. Thomas Reuters’s estimates were also close, at $0.37 for per share earnings and total of 36.79 billion in revenue.

General Electric (NYSE:GE) now has its eyes on the industrial organic revenue growth. The company is expecting a 4 to 7 percent increase. General Electric (NYSE:GE) further revealed that it is expecting to attain its $1 billion or above for structural cost of $674 million.

The third quarter has proved very profitable for General Electric (NYSE:GE), as their industrial segment gains were up by 9% and organic revenues also rose 4%. The growth market orders saw an increase by 34%, whereas the US orders saw a rise of 25%. In addition to this, the company produced a striking $3.8 billion in revenues, for the third quarter alone.

Looking into the backlog the company set a high record of $250 billion, which has gone up to $21 billion, when compared to last year figures. Product development or introduction of new innovative technologies has led to 31% increase in orders placed. Service orders also saw a rise of 10% in this quarter. General Electric (NYSE:GE) predicts future productivity solutions to generate revenues that cross the $1 billion mark in 2014.

A staggering amount of $8.4 billion was returned to the shareholders; $6.6 billion in paid dividends and the remaining $1.8 billion in stock buybacks. This came from the $90 billion in cash and cash equivalents.

This quarter has shown impressive figures for General Electric (NYSE:GE). Other worth mentioning mile stones achieved in this quarter include, company’s completion of IPO of the North American retail finance business of Synchrony Financial. Also, the company plans to sell off its appliances to Electrolux for $3.3 billion was achieved in this quarter. Further acquisitions also started around the same time. This includes the acquisition of Alstom’s power and grid business. The deal is expected to close in 2015.

The company’s chairman and CEO Jeff Immelt, stated that the company performed remarkably well and gave outstanding figures for the quarter. Despite the unpredictable market status, General Electric (NYSE:GE) still managed to seek out and execute growth opportunities. The company also stayed on schedule and as planned, with its IPO of Synchrony Financial and selling of Appliances business.

General Electric (NYSE:GE) acquired a 3 cent gain on Thursday to $24.25 according to Wall Street. Shares were up by 1.4% resulting at $24.59.