General Electric (GE) Investment Risks- Bidnessetc

Investment Risks 1 11 Lower margins across segments, especially in energy, could pressure the company's profitability. GE has already lowered its guidance for margin expansion to 70bps from 70+ for FY13. GE's margins have expanded by an average of 50bps in the last two quarters over the last seven years. GE lost $34m due to foreign exchange fluctuations in 1QFY13. With the yen weakening, Japanese competitors can capture GE's market share in the power and healthcare segments. Demand from Europe might remain weak. Europe's GDP is down 3.30%, with industrial production at -0.60%, a slight improvement from Long-term capital expenditure by hospitals is under pressure in the US. It has fallen to -1.40%. 3.3% in May, from 6.8% in April. GE Healthcare might experience less demand for its medical equipment. 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.