GE Sees Positives In Crude Oil's Slide

MarketWatch Pulse

Crude oil's slump could help General Electric in certain ways, the conglomerate said in a presentation to investors on Tuesday. The drop should be positive for GE's aviation and transportation businesses, as that encourages greater usage in those areas. "We will set record orders this year in locomotives," said Jeff Immelt, GE's CEO and chairman. The economies of the U.S., Europe, Japan and China all should benefit from cheaper oil, GE's presentation said, and Immelt noted that GE is "most hedged" to the U.S. FactSet data show the U.S. provided 47% of GE's revenue in 2013, far more than any other region. On the other hand, GE's oil-and-gas unit produces equipment for oil exploration and production, making that unit exposed to crude's slump and its impacts, said a Dow Jones Market Talk column on Tuesday.

Copyright © 2014 MarketWatch, Inc.

Continue Reading Below