MANILA, Philippines - GE chairman of the Board and CEO Jeff Immelt emphasized the importance of innovation, strategic partnerships and a “strong culture” in driving growth and accelerating performance in the next few years. This was in relation to a 2011 message to stakeholders about milestones achieved in 2011 and what is in store for GE in 2012.
Last year, GE posted significant growth in diverse businesses. “We had $21 billion of clean energy revenue, growing twice as fast as the company average,” Immelt said. “We are solving problems, tough problems. We are in the seventh year of a clean energy business strategy called ecomagination. Clean energy goes in and out of focus for governments and consumers. But, at GE, we are steadfast in our investing.”
Immelt also reported that the company increased its shareholder dividend four times in the last two years and that there is a dedicated focus on increasing the GE dividend in line with its future earnings.
In the past years, GE made significant investments in technology and innovation to strengthen its competitive footing and sustain profitability even during uncertain times.
Despite the volatile business atmosphere that hounded the past year particularly in the financial service sector, Immelt remains optimistic that growth will accelerate where GE is concerned. “Our margins were about 15 percent in 2011; we expect to drive them up by 50 basis points next year. We are near the top of all industrial companies, but we can get even better.”
Immelt said GE Capital’s 2011 performance grew more than 100 percent, adding that it is stronger and safer and that “we have a clear advantage over banks and can grow profitably.” He also highlighted the contribution of GE’s businesses Life Sciences, Aviation System, Oil and Gas, Mining, Distributed Energy, and Pathology. Immelt took pride in GE Aviation, which received $23 billion worth of orders in 2011, “our biggest year in history.”