Boston, MA 10/23/2013 (wallstreetpr) – General Electric Company (NYSE:GE) is a diversified company that has its feet in several businesses like financial services, infrastructure building equipment, electrical equipments and services etc. So when the company posted its Q3 results on October 18, 2013, it posted revenue of $35.7 billion which resulted in a growth of 2.2%. The net income is $3.2 billion with a 9.2% profit margin. Such figures are a huge achievement for the organization considering its size.
Speculations of the company reaching its debt ceiling were put to rest by Jeff Immelt, Chairman and Chief Executive, GE who said that the results of the company revealed a good base for further growth to be achieved and that he was very optimistic about the company’s future.
Unwavering trust of the investors
Despite untoward news and speculations about the company’s 1% loss and debts, the investors remained optimistic on the stock market and trading on Monday and Tuesday resumed as usual with a slight spurt if increase in the share price. Overall the share price of the company has increased to a month long high on Monday and Tuesday.
Cost cutting may have led to margins
In the third quarter, the company had cut its costs in the industrial structures sector by about $500 million. Apart from that, it also laid-off employees and eliminated redundant ERP system in a major cost-benefit analysis. After having weeded out the unnecessary cost causing activities, the company also revealed the backlog of orders that are still in the pipeline waiting to be executed.
Trade analysts from Reuters estimate the profit from these pipeline orders to result in a 13% margin increase in the next quarter. The industrial margins of the company have expanded by 120 basis points and seem to be right on track for the next quarter.
