Conglomerates Sector Review: Jeff Immelt’s Commentary, United Technologies Deal
General Electric Company (NYSE:GE): “GE’s portfolio demonstrated strength and resilience, delivering earnings growth for the seventh consecutive quarter while also generating substantial operating cash flow to support investment in our business and dividend growth,” said GE chairman and CEO Jeff Immelt. “We are confident in our 2012 framework to realize double-digit earnings growth in our Industrial and Capital segments, increase margins and provide dividend growth to our shareholders in line with earnings.”
Immelt added, “GE Capital, like our Industrial businesses, is stronger and competitively positioned to win. GE Capital is poised to grow double-digit in 2012, while continuing to shrink its balance sheet and strengthen its capital and liquidity positions. GE Capital volume grew to $49 billion, up 13% from the third quarter and margins remained healthy at 5.4%. Tier One common ratios are now at 11.4% and 9.9% and remain a source of strength. As we have previously stated, we expect to restart the dividend from GE Capital to GE this year, subject to Federal Reserve review.” Immelt concluded, “We finish 2011 with momentum and are positioned for a strong 2012. Our Industrial businesses are positioned for growth. GE Capital is strong and profitable. We have substantial cash available to improve shareholder returns. The Company is positioned to perform for investors.”
The shares closed at $19.15, on the day. Its market capitalization is $202.17 billion.
United Technologies Corp. (NYSE:UTX): Pratt & Whitney Rocketdyne demonstrated the consistent reliability of its propulsion systems by successfully boosting the fourth in a series of Wideband Global SATCOM, or WGS, satellites to increase communications capabilities for the U.S. Department of Defense, or DoD. The mission launched from Cape Canaveral Air Force Station, Fla., aboard a United Launch Alliance Delta IV medium rocket with Pratt & Whitney Rocketdyne RS-68 and RL10B-2 engines providing the booster and upper-stage propulsion, respectively. Pratt & Whitney Rocketdyne is a United Technologies (NYSE:UTX) company.
The shares closed at $76.69, down $0.5, or 0.65%, on the day. Its market capitalization is $69.49 billion.
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