Boston, MA 01/16/2013 (wallstreetpr) – General Electric Company (NYSE:GE) releases its Q4.13 data on Friday January 17. As usual there will be a lot to watch in the company’s report because it comes when retooling of the organization is entering top gear. The question is whether the management will receive credit for what they have been doing of late in taking the company away from financial operations to industrial operations.
For many years GE invested in empire-building, there were benefits which came with this but in the end things were not as good as they had been expected. So consolidation has been the name of the new game. The company is divesting from non-core businesses while reducing exposure in high risk operations. In particular GE recently sold its stake in NBC Universal to exit media business. The company is also reducing presence in consumer financing and plans are underway to completely spin off the business by 2015.
As the company exit media and finance operations, it is going back to its industrial roots where it is increasing presence in alternative energy, aviation and manufacturing. The stock has surged to top levels since 2008 as the company undergoes reorganization.
A lean GE
General Electric Company (NYSE:GE)’s push to slimming is expected to help the company reduce operating cost, optimize opportunities and boost revenue. Over the past few years, GE Capital, the company’s financial arm, has been the burden to its finances. This arm turned losses that ended up eating away profits generated from other segments. This is why it is wise to spin it off.
The company is also trying to optimize its available resources. The company’s aviation arm has become one of its vibrant segments, thanks to orders from Boeing Company (NYSE:BA). GE is also competing effectively in the energy segment against rivals Siemens (NYSE:SI) and Cameron International (NYSE:CAM).
Earnings
Looking at the company’s performance since retooling efforts started, there is no doubt that the management is getting a lot of things right. The forthcoming earnings results should justify the steps that the company has already made towards turnaround. Note General Electric Company (NYSE:GE) stock is up more than 13 percent since mid-October. In the earning, check to see the company’s clarification in its turnaround progress.
