Industrials

Good News For GE (GE): Siemens See Stimulus Revenue

GE_largeIt should be considered significant good news for GE (GE) that Siemens (SI) says its revenue from global stimulus packages would be huge. According to Reuters, the conglomerate claims that it expects new orders due to efforts to improve the economy to be close to $31 billion. Much of this money will be spent on so-called “green” initiatives.

GE is a champion of environmentally friendly projects which fall under its “ecomagination” programs. GE’s revenue benefit ought to be greater than Siemens because of the relative sizes of the firms.

GE’s stock has been stuck around $12 for the last two months, down from a 52-week high of over $30. The company needs one or more catalysts to revive investor interest. GE’s shares have dropped almost 25% over the last six months while the DJIA and Siemens have been flat.

Most of the trouble with GE’s stock has come because of a fear of write-offs at its large financial services business, although the unit has performed as well as the company had forecast.

If GE’s income from the global efforts to repair the economy can track Siemens, investors in the company may be able to get out of the mud.

Douglas A. McIntyre

 

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