Gen.electric Share Price (GEC)

Positive Points: General Electric remains something of a 'bellwether' for US industrial health. Diversification for both product type and geographical end markets allows the company to offset specific difficulties. GE's order backlog, watched by investors as an important indicator of future sales growth, reached $210 billion in the fourth quarter, up from $203 billion in the third quarter. The company achieved double-digit earnings growth in five of seven of its Industrial segments. GE Capital progressed with its strategy of a smaller, more focused financial services business with solid profits that grew 9% in the quarter to $1.81 billion. The company's strong cash position enabled it to repurchase $2.1 billion of stock during the fourth quarter and $5.2 billion of stock for the year. General Electric was one of the original 12 companies listed on the Dow Jones Industrial Average when it was formed in 1896. In December, the board of Directors raised the company's dividend 12% to $0.19 per share.

Negative Points: The health of the global economy remains a major factor going forward. Should GE resume its acquisition growth strategy, its success will depend on identifying and acquiring businesses at prices that can be attractive to group earnings. With cyclical exposure in power generation, commercial aerospace as well as commodity prices, each could cause GE's results to be lower than anticipated. Uncertainty on capital requirements at GE Capital lies in the background. GE has exposure to any impact caused by healthcare reform legislation.

Financial Highlights: GE announced fourth quarter profits of $4.01 billion, up from $3.73 billion a year earlier. Revenues rose 4% for the quarter to $39.3 billion, and totalled $147.4 billion for the year. GE's industrial segment profit rose 12% in the period to $4.9 billion. The conglomerate said it ended the quarter with $77 billion of consolidated cash and cash equivalents.

Fourth quarter results: Industrial behemoth General Electric reported a better than expected 7.5% rise in profits, due in part to an improved performance within the group's GE Capital financial arm. In a statement, CEO Jeff Immelt said the outlook for developed markets remained uncertain, but China and other emerging markets, along with regions that are exploiting natural resources, are growing. GE is focusing on its more traditional industrial operations, such as making complex industrial equipment and providing services to industrial companies. The company is shrinking its banking division and trimming other non-industrial operations like commercial real estate and expects revenue and profit growth to continue this year. GE said its backlog of new business reached $210 billion, its highest ever.

Not keen to compromise anonymity here at LSE - my views are straightforward and punchy (and some might get upset by truth and light!!) How about cut and paste of interesting bits on to this board?