The Rising Influence of Rising Affluence

[DewDiligence]

GE’s oil-stained results:

http://www.wsj.com/articles/ge-profit-falls-as-revenue-growth-less-than-expected-1477047596

The big problem for sales and earnings continues to be oil. Low prices have triggered the postponement or cancellation of major projects in the industry, hurting companies like GE that sell equipment for pumping and drilling.

Oil-and-gas revenue fell 25% in the third quarter, and segment profit fell 42%. GE has already been cutting costs aggressively in the oil and gas unit, closing facilities and trying to standardize product offerings to reduce expenses. Chief Financial Officer Jeffrey Bornstein said the oil and gas business was on pace to hit a cost-cutting target of roughly $800 million for the year, with room for more “incremental” cost reduction in the coming year.