General Electric's (NYSE:GE) Margins Under Pressure in 2011

In spite of the efforts to paint a pretty economic picture for 2011, General Electric (NYSE:GE) will continue to struggle as margins continue to be under pressure in 2011.

That said, demand in some of their segments are improving, with some being obvious like in medical imaging devices and heavy equipment. Health care is rarely depressed and the ongoing demand for heavy equipment, especially in the agricultural and mining sectors should continue to be strong.

Another segment expected to flourish in 2011 is orders for railroad locomotives.

GE CEO Jeffrey Immelt said, "Things are definitely getting better, we're seeing it across the portfolio right now. The performance is strengthening in the fourth quarter and we see good momentum as we go into 2011 and beyond."

Expectations are the company will end 2010 with close to $20 billion in cash, and could grow that to over $30 billion in the near future, which has some shareholders nervous because of possibilities of acquisitions which may be difficult to integrate into the company.

So while revenue will rise, the question going forward is how the margins will affect the growing revenue. Sales projections for 2011 are from flat to an increase of about 5 percent

Immelt admitted the overall economic will be a factor, saying, "The arithmetic just works that we should be able to grow earnings at 10 percent. Let's see where the economy goes."