General Electric Company (GE) Looks Poised For a Bounce Back

New product launch in 2013

New products to be launched in 2013 are:

  • Silent MR- it focuses on patient comfort, near precinct noise level.
  • GE9x Engine- this new engine will support wide body aircraft, with fuel efficiency.
  • Subsea Trees- High performance, durability and simple product structure.
  • Battery Powered Shield Hauler- for mining markets, targets fuel, safety and environmental performance.
  • New BOP- sensing technology for early kick detection and capable of cutting off wells at greater depths.
  • Bio manufacturing- use in MAb therapies, cell line technology in Bio processing.
  • Power conversion- drives operating without transformers, a low cost and compact technology.
  • Mision1appliances- Horizontal axis washer & Dryer, stainless and dishwater.

Dividend raise and share repurchase

General Electric Company (NYSE:GE) increased its quarterly dividend by 12% and also raised its share repurchase authorization by $10 billion. The dividend of $0.19 is payable January 25, 2013 to shareowners of record at the close of business on December 24, 2012. The quarterly dividend of the company has been increased for the fifth time in three years.

Margin Expansion

General Electric is planning to launch its new product in the market at a premium price to support margin expansion. GE posted operating margin of 14.8% in 2011. It is anticipated that this margin will rise by 30 basis points in fiscal year 2012. GE is further looking forward to, increase by 70 basis points in 2013.


The company has a good dividend history and dividend yield. The General Electric Company boasts of 3.34% dividend yield and a P/E ratio of 15.6. General Electric is targeting margin expansion, new product and services launch in 2013. The natural gas revolution enhanced global investment in infrastructure and low interest rate in developed countries will assist GE in driving growth in 2013. The company looks forward to invest approximately $65 million in Dayton’s Aerospace Corridor. This new facility will be the center of the company’s electrical power business.

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