General Electric Company (NYSE: GE) annoucing new deals - the business is still in the game
General Electric Company (NYSE: GE, GE message board) announced on Tuesday that the company has signed a $60 million agreement with Trenitalia, for a design and installation of Sistema di Supporto alla Condotta train protection system. This diesel locomotive system will be used by Trenitalia for the transportation of passengers and cargo and will be installed by GE Transportation's Global Signaling business branch.
General Electric will install a new generation automatic train protection solutions that addresses train safety and performance issues. The company has also made other agreements to install SSC lines in Italy and Brazil.
Of course the amount of the single deal is not too large and may barely have any influence on General Electric's overall financial performance. Stock price has clearly shown investors are not too enthusiastic about a single deal like this. Share price only climbed along with the market for the day. However the announcement shows that the company is still in business and there is a demand for their services.
The company's stock regained some ground over the past week when the whole market rallied. The thing is, GE might prove to be able to sustain this price growth. They are by far one of the few companies that haven't reported a loss up to date. If they could catch up with orders it would be a safe stock to invest in.
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