General Electric 3Q15 Earnings Call Notes

General Electric’s (GE) CEO Jeff Immelt on Q3 2015 Results

We see as much industrial activity as we’ve ever seen around the world

“I would say, kind of going around the world, is U.S. gets a little bit better every day. Europe is appreciably better. Meanwhile, growth markets are highly differentiated in terms of their performance and have some headwinds as it pertains to oil prices and things like that. On balance, Scott, we see as much activity as we’ve ever seen. The quoting activity, the deal activity, things like that, is still quite robust. Business for us in China is still pretty good, which is a big market. And so we still see a fair amount of opportunities out there, even amongst the volatility.”

We still like Oil and Gas. We’re long term players in the industry

“Look, guys, we still like this industry. I would go back, Deane and – look, we never, as we built our portfolio in Oil & Gas, we never thought about it reflecting $120 for oil or anything else. Our investment is really made along the lines of – we felt like the industry was going to be growing in technical intensity, customer solutions, that over time the Oil & Gas business would look a lot like our Aviation business or our Power business or things like that, and that’s what led to the investments.

So we’re a long-term player in Oil & Gas. We like the industry. We’re committed to the industry. I think as we look at opportunities and where we are today, anything would have to hurdle above buying back our own shares. And so we’ll be opportunistic, we’ll be disciplined, and we have an alternative that we think is still quite attractive for us of buying back our own shares.”

We feel like China is stabilizing a little bit for healthcare

“We actually feel a little bit better that China is stabilizing a little bit for Healthcare. The performance this quarter sequentially was better, and we think the tendering process is ultimately going to pick back up. When you think about China, the underlying fundamentals haven’t changed. There is still 1.5 billion people. They’re still building hospitals.”

Assets have been selling for ~1.4x book

“in total, we’re expecting about 1.1 times price to tangible book. We’re a little ahead. You can see the U.S. assets that we’ve sold mostly so far, are selling at 1.4 times price to tangible book. A little ahead of what we thought 1.3.”