As per the dividend policy of GE Company, the returns that are paid to its shareholders in the form of dividend are approximately half of its profits. Although sometimes during the previous years the company was not in the position to pay dividends at the same rate, the expectations about company’s dividend growth are still going in forward direction which is the sign of company’s long term sustainability and growth
Along with the performance of company in the continuing operations, its performance in specific areas of business is discussed below:
- Power and Water: Revenues through the sale of power and water increased by 10% in the year 2012, but these revenues were declined by 13% in the year 2013 due to reduction in the volume and negative effects of stronger US dollar. This decline was not possible to be set off wholly but partially it was offset by higher prices and other income from routine business operations.
- Oil and Gas: Revenues from the sale of oil and gas that were increased by 12 % in the year 2012 were ultimately declined by 11% in the year 2013 due to the adverse effects of high volume and increased dollar rates. Apart from this, the segment profit that was increased by 13% in the year 2013 due to higher volume and purchase prices was ultimately utilized to set off the losses occurred as a result of lower cost productivity.
- Energy management: The past performance of GE Company in context of energy management showed an increase of revenue by 2% in the year 2013 due to the partial offset of previous losses from the positive effects of strong US dollar.
- Aviation: As per the financial reports presented by the company, revenue from the Aviation services showed an increase of 10% in the year 2013 due to increased sales of equipments in commercial spares and commercial engines. In the year 2013, apart from these revenues, segment profit also increased by 16% due to the effects of inflation as well as lower productivity which was increased by just 7% in the previous year 2012.