You gotta feel it, IT’S ELECTRIC!
General Electric is expecting resource-rich companies to drive sales growth this year, as heavy industrial equipment continues to be a big seller. Sales are expected to rise 20-25% in Australia, Latin American, the Middle East and Africa and 10-15% in Asia while U.S. and European sales are expected to be flat to up 5%.
Vice Chairman John Rice said, “We think that within the next ten years, the growth markets will contribute 50% of the company’s revenue.” Energy and healthcare are expected to be top performers in emerging markets. Rice said, “As GDP rates get revised, there is still tremendous pressure on governments and companies to build out the infrastructure and we believe that’s the last thing that will get cut.” Currently, those markets make up roughly 37% of the top line.
CEO Jeff Immelt has been focusing on energy over the past two years as it looks to reap the benefits of the growing energy industry. It currently touches almost every facet of energy, providing equipment for the production of oil & gas, electricity from coal and gas as well as solar panels and wind turbines.
General Electric (GE : NYSE : US$18.77), Net Change: 0.35, % Change: 1.90%, Volume: 53,615,107