General Electric
The General Electric Company (GE) is an American multinational conglomerate founded in 1892. A technology and financial services company, GE has also ventured in various segments such as aviation, healthcare, power, renewable energy, digital industry, additive manufacturing, venture capital and finance, and lighting. GE’s people are diverse and dedicated, operating with the highest level of integrity and focus to fulfill GE’s mission and deliver for its customers. In 2011, GE ranked among the Fortune 20, and in 2019, GE ranked among the Fortune 500 as the 21st largest firm in the United States by gross revenue.
- Was an original component of the DJIA
- Was removed from the DJIA in June 2018
- Historically was known for its consistent and growing dividend (until 2010s)
- Known for being a technology leader in industrial segments: (GE industrial)
- Gas & Steam Turbines
- Electric Generators
- Wing Turbines
- Oil & Gas Services
- Jet Engines
- Locomotives
- Lighting
- Medical Diagnostics (X-Ray, CT, MRI)
- Has a large financing arm (GE GAPITAL) (1/3 of business)
- Finances new & used aircraft
- Finances powerplant projects
- Finances renewable energy projects
- In the 2000s and 2010s was run by Financial Engineers
- Jack Welch, Jeff Immelt & John Flannery
- Through dividends and buybacks they returned ~225 billion to shareholders, but failed to invest in the business
General Electric Downfall
- Morphed from it's industrial/technology base into a levered financial company over time (GE Capital)
- Problems with GE Capital Assets (turning into unfunded liabilites) have dragged down the GE with it (2017)
- Had to pay a $50 million fine to the SEC for improper financial reporting
- Issued subprime mortgages through its' WMC unit (potentially fraudulent - being sued by justice department under FIRREA)
- Held on to long-term-care insurance policies after spinning out Genworth Financial Corp in 2004
- Those policies have turned into massive liabilities