General Electric Company (NYSE:GE) is all set to outgrow the industry average with its Oil and Gas business and the company is likely to defeat the industry average for several upcoming years.
After 2009, the Oil Division of General Electric Company (NYSE:GE) had a 75% growth in its revenue to $17 billion and the company became the fastest growing industrial business in U.S. conglomerate during the same period. According to the president of turbomachinery solutions division of GE, Rafael Santana,
“We’re driving profitability up for this business as we look into the ’14 time frame and as we look into the strategic plan we lay out for the next three years.”
Jeff Immelt, Chief Executive of General Electric Company (NYSE:GE), is all set to improve the industrial margin to 17% by 2016 from the existing 15.7% margin. Despite of an excellent run last year with 12.8% profit margin, the Oil and Gas division was far below the other primary industrial segments of the company including aviation and healthcare. Santana added that the oil division would be crucial in fulfilling Immelt’s growth margins.
Oil and Gas division has increased its productivity and it is constantly trying to develop higher value products for the customer. Santana further added,
“When we look at the industry … we see the opportunity for us to grow beyond those numbers.”
General Electric Company (NYSE:GE) reported $0.39 in operating earnings per share with 7% increase in industrial revenue during the second quarter 2014. Net revenue for the quarter was $36.2 billion with 9% increase in industrial segment process. The company achieved cost cutting of $382 million during the first six months of the year.
This article has been written by Prakash Pandey.