‘Pragmatic’ is how General Electric Company (NYSE:GE) describes its outlook towards the expected earnings in 2015, according to CNBC. In a broadcast anchored by Mary Thompson, the company announced that in spite of oil prices plunging southward had hit its bottom line it was still poised for good things to come.
One of the upsides pertains to the rise in the expected share value of the company by $1.70-1.80, thus indicating a jump of almost 10%. This is a substantial increase – ranging between 2 and 8% – to the forecast predicted by analysts for the company in 2014. What renders it more important is that General Electric Company (NYSE:GE) has provided a specific financial figure for the first time since 2008, the announcements in between being vague and ambiguous.
“Even before prices went down, oil and gas customers were really focused on improving the quality of the projects. We like our competitive position. We like this business. We like it more at $120 [oil], don’t get me wrong, but we like this business for the long term.”
A reason underlying this optimism could be General Electric Company (NYSE:GE)’s expectations from its other divisions like locomotive, aircraft equipment and gas turbines. Confidence might also be based on acquisition of France’s power company Alstom wherein the $16.9 billion which have been spent will be expected to bear fruit.
The company remains unfazed about its positions in China too amidst projections of growth slowing down. On being asked, its CEO answered that while some sectors in China were still going strong, General Electric Company (NYSE:GE) was more concerned about its performance in the American market than worldwide. Going by this logic, the company hopes to gain from the fact that people in USA are paying less for oil than they used to.
This article has been written by Vinita Basu.