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General Electric reported earnings down 19% to 2.94 billion in the fourth quarter, or 28 cents per share, against $ 3.65 billion or 35 cents a year earlier. The Thomson Reuters consensus assumed an EPS of 26 cents. The turnover number one worldwide in aircraft engines and turbines that generate electricity has decreased by 10% to 41.48 billion dollars. GE has maintained good cost controls which allowed him to cope with demand still weak electric turbines and heavy machinery.

“They exceeded expectations for both revenue and net income, which is positive. Orders have been supported and progressed from the third quarter, “said Perry Adams, manager of equity portfolio for Huntington Private Financial Group in Michigan, was quoted by Reuters.

The “framework” of GE Financial in 2010, following which the results of the current year would be the same as those of 2009, is “quite feasible”, said the CEO Jeffrey Immelt.

The conglomerate has also concluded an agreement in December to give Comcast a majority stake in its subsidiary NBC Universal media.

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Company activity
General Electric (GE) is one of the largest conglomerates in the world. His business can be divided into three main areas: first, the historical activities, which include appliances, lighting, television network NBC Universal, industrial systems, lighting, and specialty chemicals. Then the financial services for individuals and businesses, with GE Capital. Finally, the technology division, which includes aircraft engines, medical systems, transportation systems and energy. The group employs 10 000 people in France, edited by Clara Gaymard.

The strengths of the value
- The group’s financial position is strong.
- GE has a brand extremely strong world.
- The conglomerate structure allows GE to allocate risks between the looms longer or shorter cycles.
- By selling GE Insurance Solutions to Swiss Re, General Electric has finalized its strategy to exit the insurance business and refocusing on its core businesses with higher growth.

The weaknesses of the value
-The diversity of sectors in which GE makes changing the title sensitive to air transport industry for its aircraft engines or industrial investment for GE Power Systems.
-The group is exposed to soaring raw materials.

How to track the value
-Given the position of group leader in many areas, as General Electric is considered a barometer of the economic situation of the United States.
-Rumors suggest a recurring redemption of Theolia, which GE owns 16.9%.

THE AREA OF THE VALUE

Capital goods
According to the FIM, the activity of mechanical industries should decline by 10% to 12% in 2009, is expected to grow by 2% to 3% next year. The real sector recovery expected in 2011. The FIM is concerned about the resilience of business financially. She believes that layoffs are likely to continue as the corporate failures. Therefore it has challenged governments that are put in place measures to support rapid and concrete in four areas: financial, export because of the very cautious attitude of insurance companies, social and fiscal . The mechanics are not the only industry to seek government assistance. Representing 900,000 employees and 110 billion euros in turnover, the electric plant is a candidate for the general loan. She has made several proposals to revive the sector in crisis, including the introduction of a premium to replace their old electric motors.
Communication – Medias
To counter the Internet players, accused the press of competing by offering its content online for free, five giants of the American press (Conde Nast, Hearst, Meredith, News Corporation and Time Inc..) Joined forces in creating a joint venture. Their goal is to impose a new standard for online reading. Through this joint booth online, readers can buy one item, a copy or subscribe to a magazine. With a total of 144 million readers, five media groups hope to recover the advertising revenue they escaped so far. The other opportunity is to benefit from the growing market for digital books. In France, the editors met in the union of the daily press will soon meet with leaders of Google to try to change the situation. AFP (Agence France-Presse) promotes a new model: Google now pays a lump sum over three years for the resumption of its news aggregator on his research.
Aviation

The IATA does not return fast growth rate that existed in the period 2005-2008. If last October, global air traffic has received an application better than 6% at the lowest point recorded in March 2009, it remains 5% below the highest point in early 2008. Therefore, despite the improvement in October, the association has maintained its forecast of a net loss of $ 11 billion for the sector in 2009. She believes that next year the net loss is expected to reach 4 billion dollars. In a crisis, the low cost carriers pull out their game well and managed to gain market share: this year, they should carry about 175 million passengers in Europe, 17% more than last year past. Most major airlines, particularly Air France-KLM, Lufthansa and British Airways, which all seek to reduce costs and adapt. The first is to have reacted to British Airways, which has removed the food on flights lasting less than an hour and a half and set up the second bag fee.