A glance over the specifics of the transaction and how it will help General Electric to grow further
General Electric Company (NYSE:GE) capital division has announced that it has signed a purchase and leaseback transaction with Qatar Airways. The deal consists of five Airbus A350-900s. This will help the company to expand its carrier fleet.
Earlier in June, Qatar Airways walked away by canceling its first Airbus A320 neo order. The main reason behind the cancellation was some of the delays that were expected from the supply side.
General Electric has hugely existed from its capital division. Investors then started to show greater interest in the stock and have started to take notice. This is because the company was hit hard at times of the credit crisis. This was the time when its financial markets suffered hugely. The company sold its last finance division in October last year to Wells Fargo.
General Electric purchased Doosan’s heat recovery steam turbines worth $250 million. This is expected to general healthy revenues from Alstom and will enable General Electric to play tough with the competition.
Furthermore, the Company’s Chief Technology officer announced that he has no plans of moving to Boston, the new headquarters in Fort Point. Boston is known as one of the best technology areas, due to which General Electric moved.
General Electric is known for its diversity in the industry. Its air and defense sector and the technology sector have certainly given a boost to the revenues of the company. The sale of the finance division will allow it to focus more of the industrial side, which it considers to be one of the most lucrative segments of the company.
General Electric stock jumped 0.27% to $31.27 as at 2:16 PM EDT yesterday. The company has a huge market cap of $279.86 billion. The stock has a 52-week range of $19.37-33.