General Electric Company (NYSE:GE) is a multinational conglomerate corporation, meaning that it is highly influenced by anything at a global level. The current political turmoil created by Russia and agitation in the Middle East can severely affect the company. Lorenzo Simonelli, General Electric Company (NYSE:GE) Oil & Gas CEO, explained in an interview on CNBC the giant’s attitude towards its clients and that it might reduce exposure to unfavorable events through communication.
“We also obviously stay close from a political standpoint, understand the political situation. In Russia we’re obviously monitoring the situation closely, understanding what the impact is of the sanctions […],” said Lorenzo Simonelli.
The Gas & Oil industry is not affected by politics alone, the price of crude oil is falling to the detriment of all the companies involved in mining and distribution operations of the commodity. General Electric Company (NYSE:GE) is apparently sensing a slowdown for the business and hopes that panic will not follow up these events.
The company is trading at almost $26 per share, showing a slight increase compared to yesterday’s numbers, but it’s generally catching up with the value it had at the beginning of the year. However, in their press release, General Electric Company (NYSE:GE) reported operating earnings of $3.9 billion in total or approximately $0.39 per share, up 8% on the year, while its revenues amounted to $36.2 billion for the quarter, up by 3% from last year’s period and industrial segment profits climbed by an annual 9% quarter to $4.2 billion.
We can see all sort of rising figures in the financial statement, but apparently General Electric Company (NYSE:GE)’s stock doesn’t feel it yet or the net effect of growing numbers is not strong enough to compete with the combined result of political and economic factors. In any case, the company seems to be doing the right thing, preparing and expecting the right opportunity to overturn its luck.