General Electric Company(NYSE:GE) increased their forecast for sales growth at the industrial units. The company, according to the forecast, said that there will be a ten percent rise, as compared to last year’s forecast, which had kept a margin of five to ten percent growth. General Electronics is the largest maker of Jet engines and Diesel- based locomotives.
The forecast was put forward through a presentation which was made in the Fairfield, Connecticut branch of the company. The shares, as a result, have jumped up to a 2.9% which has lead to them being valued at $22.73 at the close of New York. Jeffrey Immelt, the Chief Executive officer of the company stated that the industrial portfolio was looking nice and positive, and that a double digit growth was being foreseen in the near future. The sales of General Electronics according to the GE forecast will definitely be a good thing for U.S industrial stocks.
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The earning per share will be in double digits throughout this year, as well as the next year. At least that is what the estimate has been, so far.
Immelt said that General Electronics will be focusing a billion dollars, to three billion dollars for acquisition purposes, but despite the company looking into mining equipment and service suppliers, Immelt does not want the investors to step into a hung underground mining project as of yet.
53 percent of the 2011 sales were from outside the United States, for General Electronics. The hope for double digit growth also applies to Canada, Brazil and Russia, which will increase from the $33 Billion of last year.
The operating profit margin growth will be 30 base points to 50 base points in 2012, which will increase by 20 more base points in 2013. A profit of $100 Billion in cash is estimated for 2012 to 2016, which will mainly go into mergers as well as acquisitions for the company. There will also be stock buybacks, so that the outstanding shares get limited to only 10 Billion. Immelt wants the money to be used very judiciously, and he also hopes to create greater shareholder value through these phenomenal developments.