Ge profits jump 77% tax free?

Discussion in 'Current Events' started by USAMomma, Apr 21, 2011.

  1. USAMomma
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    USAMomma Member

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    The report reads, in part,

    ""Our environment continues to improve and get better," said Chairman and Chief Executive Jeff Immelt on a call with analysts, noting that the restructuring of GE Capital was ahead of plan while the quarter saw a record backlog of orders for its industrial products and services.

    Mr. Immelt also said the company is finished with major acquisitions for 2011 after announcing $11 billion in deals over the last six months to expand its energy unit. The moves include a $3.2 billion agreement last month to buy a controlling stake in French power-conversion company Converteam, and a $2.8 billion deal in February to buy the well-support division of John Wood Group PLC.

    "The major transactions we plan on doing, we've done," Mr. Immelt said, adding that GE will now "tend toward dividends and [stock] buybacks" as a use of cash.

    He called the latest dividend increase a show of confidence in GE's outlook but said the company aims to eventually return to its pre-downturn tradition of predictable, annual increases.

    "Over time, we're going to get back to an annual dividend increase that investors can count on," Mr. Immelt said.

    GE shares were off about 2.1% in midday trading at $19.95. The stock is up 12% year to date through Wednesday, with GE's strong first-quarter results following a fourth-quarter report in January that showed substantial evidence of a turnaround.

    Regardless, Mr. Immelt reiterated confidence that the Fairfield, Conn., company will achieve goals laid out in its 2011 financial framework, which among other things calls for about 5% revenue growth in GE's industrial businesses. GE has been relying on its industrial units to fuel its long-term prospects as it moves to shrink GE Capital, which once accounted for half the conglomerate's profit but became a severe drag during the financial crisis."

    For entire report read here:
    GE's Profit Jumps 77% - WSJ.com
     
  2. uscitizen
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    uscitizen Senior Member

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    Of course, they are a major supplier to the govt/military.
    Our tax dollars at work. Why should they pay income tax when they are paid in part with tax dollars?

    :D
     

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