GE Industry Analysis - Bidnessetc

Industry Analysis GE operates in multiple industries, including Energy Infrastructure, Aviation, Healthcare, Home & Business Solutions, Transportation and Banking. Because of its diversified interests, its performance is considered a bellwether for the American economy. Global Revenues for Industrial Conglomerates: Total Revenues of US Industrial Conglomerates: 1yr Revenue Growth: $1.04 trillion $197.7bn 3.28% Data as of 06/30/2013 3yr return S&P 500 Equal Weighted S&P 500 Industrial Index VS 42.9% +48.8% 70% 60% 50% 40% 30% 20% 10% -10% 01-07-2011 07-01-2011 01-06-2012 07-06-2012 01-04-2012 S&P 500 S&P 500 Equal Weighted Industrials Index The S&P 500 Equal Weighted Industrials Index includes S&P 500 constituents classified in the GICS Industrials sector. Key Performance Indicators: Performance of Industrial Conglomerates in 2012: ... Growth in Revenues: Earning Per Share (EPS) ooo 1.1% growth: 19.8% YoY YoY Institute for Supply Management's Purchasing Managers' Index: The Purchasing Managers' Index (PMI) is a leading economic indicator which signals expansions or contractions in the manufacturing sector of an economy. The composite index includes five major sub-indicators: employment, production, supplier deliveries, customer orders and inventory levels. Recent data released by the Institute for Supply Management (ISM) on their PMI suggests that the US economy is showing signs of recovery. The PMI increased to 55.7 in August from 55.4 in July, beating consensus estimates of 52; a 9.9% increase YoY. 58 55.7 56 54 52 50 48 46 44 ISM Manufacturing New Orders Index: Moreover, the ISM New Orders Index rose 4.9% Month-on-Month (MoM) in August to 63.2; an increase of 33.1% YoY. 63.2 65 60 55 50 45 40 35 30 Energy Infrastructure: Energy Infrastructure is a complete value chain. It starts from drilling for fossil fuels, and ends at the production of energy and its distribution. The global energy infrastructure industry generated revenues of $425bn in 2012, a growth of 15.5% YoY. Rising energy prices have encouraged oil and gas exploration companies to expand capacíty and upgrade existing equipment. This has led to sustained demand for new oil and Following extraordinary growth in this segment, GE has divided it into three separate concerns: Oil & Gas, Power & Water, and Energy Management. gas drilling equipment and maintenance services. Aviation: As a result, airlines have been forced to move towards Fuel prices have increased drastically over the last 10 years: The Commodity Fuel Index rose more fuel-efficient engines. 246% Boeing and Airbus received huge orders at the 2013 Paris Aviation show. GE, too, managed to secure orders worth in the last 10 years, while jet fuel prices rose 264% $26.5bn over the same period. Jet Fuel Price/Gallon $4 Luhmo $3.5 $3 $2.5 $2 $1.5 $1 $0.5 Medical Technology: Long-term capital expenditures (capex) by hospitals in the US and Europe have stagnated due to economic US hospital admissions are hovering at loW levels: in-patient admissions fell Outpatient admissions increased 2.2% 2.7% QoQ in 2Q13. MOM. uncertainty and austerity measures. Resulting in an adjusted aggregate drop of An improvement in overall admissions will encourage hospitals to increase long-term capex. 2.5% MOM in overall admissions. Banking Industry: US treasury rates are hovering around historical lows: US 2yr US 10yr US 30yr 0.29%* 2.63% 3.71%* The availability of easy money is helping boost revenues in the finance and banking industry. *Data as of 9/4/2013 Competitor Profiles: PHILIPS Employs around A diversified health and well- 118,000 Earned being company that operates in the Healthcare, Lifestyle and Lighting segments. individuals and operates in more than 24.8bn euros in revenues in 2012. 100 countries. 5yr Revenue CAGR -1.6% SIEMENS Employs around Siemens has business concerns in the Energy, Healthcare, Industrial, and Infrastructure & Cities sectors. Earned 370,000 78.3bn individuals and is present in more euros in revenues in 2012. than 180 countries. United Technologies Earned $57.7bn The company's commercial businesses include manfuacturing Otis elevators and escalators, and UTC Climate, Controls & Security. Aerospace businesses include production of Sikorsky aircraft and UTC Propulsion & Aerospace Systems. 5yr Revenue CAGR in 2012. 1.1% Employs around 218,300 individuals and was ranked the120th largest company in the world in 2012. Honeywell Honeywell's major business segments include Aerospace, Automation and Control solutions, Performance Materials Employs around Eaerned $57.7bn 132,000 individuals and in 2012. and Technologies, and Transportation systems. operates in 56 countries. 5yr Revenue CAGR 1.7% Key Player's Stock Price Performance: GE vs Competitors March 2009 - August 2013 General Electric 68% Siemens 34% United Technologies Royal Philips Honeywell Internationa222% 61% 68% 2009 2010 2011 2012 2013 SOURCES: BIDNESS Company Data, SEC filings, Bloomberg Professional Services etc, DISCLAIMER: Bidness Etc(TM) and related marks are owned by Bidness Etc. Any other trademarks appearing on this website are the property of their respective owners, and are not used to indicate the origin of goods or services offered or provided by Bidness Etc herein or to suggest approval for or affiliation with Bidness Etc. Aug 03 9/1/2011 9/1/2011 Feb 04 10/1/2011 11/1/2011 I 107/1/01 Aug 04 Feb 05 12/1/2011 12/1/2011 Aug 05 1/1/2012 1/1/2012 2/1/2012 2/1/2012 90 qə1 90 Sny Feb 07 3/1/2012 3/1/2012 4/1/2012 4/1/2012 Aug 07 5/1/2012 5/1/2012 Feb 08 6/1/2012 6/1/2012 Aug 08 7/1/2012 7/1/2012 60 qə1 8/1/2012 8/1/2012 Aug 09 9/1/2012 9/1/2012 Feb 10 10/1/2012 10/1/2012 Aug 10 11/1/2012 11/1/2012 Feb 11 12/1/2012 12/1/2012 Aug 11 1/1/2013 1/1/2013 Feb 12 2/1/2013 2/1/2013 Aug 12 3/1/2013 3/1/2013 Feb 13 4/1/2013 4/1/2013 5/1/2013 5/1/2013 6/1/2013 6/1/2013 7/1/2013 7/1/2013 8/1/2013 8/1/2013