A small increase than what was expected by analysts for its quarterly earnings was reported by General Electric Co (GE.N) with help from cost cuts that increased margins along its industrial businesses adding revenue that missed the targets of analysts.
GE was in an advantageous position as a posting of a 22 percent boost in demand for locomotives, jet engines and other industrial services and equipment by the US conglomerate.
It is notable, though, that the quarterly growth has not been as expected by some analysts. However, GE stated that for the upper end of its estimated 2014 range of 4 percent to 7 percent growth, such profit was as planned.
This is further emphasized by Tim Ghriskey, chief investment officer at Solaris Asset Management that owns the company’s shares stated that momentum will increase upon reaching that high end.
At a high viewpoint and because of worries, this year, of a weak global economy, the industrial company’s shares have not performed to its full potential in the broad market as did other diverse U.S. manufacturers.
Despite this, the quarter’s earnings and expansion show that the company is well on its way to its industrial profit margin target of 17 percent by 2016, an increase from last year’s 15.7 percent.