Investing in Obama Pays Off for G.E.

[I AM NOT THAT GUY 5,715]

GE expected to report 13 percent rise in profit

(Reuters) - Analysts expect General Electric Co (GE.N) to report a 13 percent rise in net profit on Friday, with strong demand from emerging markets continuing to offset weak U.S. demand and its slimmed-down finance arm.

The largest U.S. conglomerate is experiencing strong demand for a variety of its heavy equipment, from aircraft engines, to gas turbines, to gear used in producing oil and natural gas, company officials have said.

"Business is good," Chief Executive Office Jeff Immelt told reporters in Greenville, South Carolina, last week. "You have this backdrop of tremendous demand."

That tremendous demand is largely coming from key emerging markets such as China, Brazil and parts of the Middle East. Demand at home is spottier, particularly for consumer products, due to lingering high U.S. unemployment and low home prices. GE does more than half its business outside the United States.

The gap between strength in the developing world and sluggishness at home has colored earnings reports across the industrial sector this quarter. United Technologies Corp (UTX.N), which generates about 60 percent of its revenue outside the United States, topped analysts' forecasts this week, while Ingersoll Rand Plc (IR.N), which has a large residential air conditioner business, missed.

Wall Street expects GE to report a net profit of $3.43 billion, earnings per share of 32 cents and $34.7 billion in revenue, according to Thomson Reuters I/B/E/S. The revenue target implies a 7 percent drop, which reflects the company's continuing drive to scale back its GE Capital finance arm.

One thing that investors will likely not get from GE management is a detailed view of the rest of the year. Unlike its peers, GE does not provide per-share profit forecasts.

That could help GE shares by sparing them the sell-offs that companies, including Danaher Corp (DHR.N), have seen after issuing what analysts described as cautious second-half targets.

"There is just so much macro uncertainty, even if it's not fully manifesting in companies' results. I don't think anyone has too much incentive to be a hero going into the back half," said Jeffrey Sprague, managing partner at Vertical Research.

Analysts expect GE's total 2011 profit to rise 18 percent.

The Fairfield, Connecticut-based company's shares have risen about 3 percent so far this year, trailing the 9 percent rise of the Dow Jones Industrial average .DJI.

http://www.reuters.com/article/2011/07/21/us-ge-idUSTRE76K7FO20110721?feedType=RSS&feedName=worldNews&rpc=22&sp=true

[Pinocchio Liberal 268]

"Business is good," Chief Executive Office Jeff Immelt told reporters in Greenville, South Carolina, last week. "You have this backdrop of tremendous demand."

After laying off 1/5 of his employees.Such a PUNK!

http://www.google.com/#sclient=psy&hl=en&source=hp&q=ge+lays+off+workers&aq=f&aqi=&aql=f&oq=&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=44eb8ccc40613db6&biw=1360&bih=618

Edited July 22, 2011 by Unions suck

[slim 1,525]

This is the Hope and Change some people voted for.