GE Security Revenue Plummeting

JH
John Honovich
•Published Nov 14, 2009 00:00 AM
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In September 2008, GE Security CEO projected 2011 revenue of $3 Billion USD. Even at that time, the implied annual growth rate of 15% seemed unrealistic (GE Security reported 2007 revenues of $1.8 Billion).

Now, UTC is disclosing GE Security's revenue for 2008 and expected revenue for 2009.

  • 2008 revenue was $1.5 Billion. 
  • 2009 revenue is expected to be only $1.2 Billion. 
That's a 33% drop in just 2 years - bad even after factoring in the general impact of the recession. [See Slide 8 of UTC presentation [link no longer available] for source]
 
Furthermore, the acquisition price of $1.8 Billion is 1.5 times revenue which is significant for a business in such steep decline.