With oil prices having plunged and touching an all-time low, General Electric Company (NYSE:GE) is one of the organizations which should be worried about its existence. However, despite having invested heavily in this sector, GE is hardly worried as per its CEO Jeff Immelt and Vice-chairman John Rice. The two top executives are confident that the company will be able to deliver simply by shifting focus from the oil and gas sector to other entities in its portfolio.
While Jeff Immelt emphasized during his interview on CNBC by Mary Thompson that aviation and healthcare were the two fields in which General Electric Company (NYSE:GE) intended to explore, Mr. Rice echoed the same in his following comment –
“The countries that are net oil importers will do more, and the next exporters will do less. We have some businesses—such as rail and aircraft engines—where our customers gain.”
Mr. Rice went on to point out how important the import-export bank would be to GE and that the US Congress would realize and re-authorize it. He put forth his argument in the following comment –
“As Africa purchasing has increased, the financing of European banks has dropped off, and the Chinese have showed up. When you look around the world, low cost-financing is a way to save U.S. jobs. There are thousands of jobs in Cincinnati and Greenville [South Carolina] because we export what comes out of there. To think the U.S. doesn’t need an export agency doesn’t make sense.”
A lot depends on the cultural change within the organization too and under Jeff Immelt, General Electric Company (NYSE:GE) is set to embark on a journey featuring innovation, clarity of thought and expertise. Courtesy of a number of positive opportunities as also the confidence of being able to manage a strengthening US Dollar, General Electric Company (NYSE:GE) is a stock which should be held on to despite initial hiccups.
This article has been written by Vinita Basu.