General Electric (GE) Sees the Light and Earnings Power in Emerging Markets
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General Electric’s (NYSE: GE) Vice Chairman John Rice said Friday the company is forecasting growth of “low single-digit rates in developed markets and low double-digit rates in growth markets” over the next 12 to 18 months.
Rice notes growth in Europe is expected to be flat to slightly positive over the next few quarters. Last year, 21.2 percent of the company’s total sales were derived from Europe. Management is hoping the low double-digit growth from emerging markets will offset the slowing growth in North America, Western Europe, and Japan.
The exec, who runs the company’s international operations, said the Chinese government is taking steps in the right direction to help improve operations for foreign companies such as GE. General Electric is predicting sales in China to grow 25 percent annually as the country takes the proper steps to become more energy efficient.
General Electric looks to acquire assets in the fields of mining, aviation, health care, and power generation & distribution around the world, according to Rice. The company is not limiting itself to one sales stream and continues to look for a diverse product offering.
“Clearly the questions about nuclear both in Japan and in Germany will lead to more of an emphasis on other fuel sources, and gas from an environmental perspective and from an efficiency perspective is probably going to be where most countries go,” Rice said. “We think over the mid-term there will be more demand for gas power generation.” GE anticipates its gas-fired power turbines business will see an increase in sales as countries begin to turn away from nuclear power.
Rice notes growth in Europe is expected to be flat to slightly positive over the next few quarters. Last year, 21.2 percent of the company’s total sales were derived from Europe. Management is hoping the low double-digit growth from emerging markets will offset the slowing growth in North America, Western Europe, and Japan.
The exec, who runs the company’s international operations, said the Chinese government is taking steps in the right direction to help improve operations for foreign companies such as GE. General Electric is predicting sales in China to grow 25 percent annually as the country takes the proper steps to become more energy efficient.
General Electric looks to acquire assets in the fields of mining, aviation, health care, and power generation & distribution around the world, according to Rice. The company is not limiting itself to one sales stream and continues to look for a diverse product offering.
“Clearly the questions about nuclear both in Japan and in Germany will lead to more of an emphasis on other fuel sources, and gas from an environmental perspective and from an efficiency perspective is probably going to be where most countries go,” Rice said. “We think over the mid-term there will be more demand for gas power generation.” GE anticipates its gas-fired power turbines business will see an increase in sales as countries begin to turn away from nuclear power.
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