GE's Immelt sees China business doubling by 2010
GE's Immelt sees China business doubling by 2010; bright spot for company after credit crisis
BEIJING (AP) -- General Electric Co. expects its business in China to double by 2010 to $10 billion a year, Chairman Jeff Immelt said Monday, in a bright spot for GE after the U.S. credit crisis forced it to cut this year's earnings forecast.
GE expects China's efforts to improve energy efficiency and clean up its environment to drive 15 to 20 percent annual sales growth for GE's clean-energy technology, Immelt said. He said GE also should benefit from heavy spending on other infrastructure for fast-expanding Chinese cities.
"We've seen great growth in China," Immelt said in an interview at GE's pavilion at the Beijing Olympics, of which the company is a top sponsor. "I think the whole focus on water and the environment, that's going to offer, we think, big opportunities for us as time goes on."
GE says it has generated $1.7 billion in revenues from the Olympics -- $700 million in sales of power and other equipment for sports venues and $700 million in advertising for its NBC television network, the U.S. broadcaster for the games.
Immelt said GE is sticking with its forecast of zero to 5 percent earnings growth this year. GE cut its forecast in April after reporting disappointing first-quarter results due to the U.S. credit crisis. Immelt said earnings at its financial services unit, which supplies 45 percent of GE profits, are expected to be down as much as 10 percent this year.
"It impacts us, but I think we've kind of managed our way through it pretty well. We haven't had any big write-offs," he said.
Immelt said Fairfield, Connecticut-based GE expects to see some "great deals" on acquisitions due to depressed asset prices.
"Some of the best opportunities we've seen in the last 10 years we're seeing right now. Assets are cheap," he said. "In financial services, sometimes bad news is good news. You'll see some great deals done in this cycle, and we'll do some of them."
Immelt said a reorganization announced in July is aimed at simplifying GE's structure and focusing on its finance and infrastructure businesses.
"It's another natural evolution for the company," he said. "It's another way to simplify the company and run it better."
- 1 General Growth reaches agreement with lenders
- 2 CE welcomes coming rise in Shenzhen visitors
- 3 China military says website had 230 million attacks
- 4 AIG board meets Tues, no plan on CEO: source
- 5 Goldman Sachs makes 272 managing directors: source
- 6 Big shareholders ask Goldman to cut bonuses: report
- 7 Asia shares dip in nervous trade, dollar steady
- 1 China to launch stock exchange for smaller companies
- 2 Obama bringing hefty agenda on European trip
- 3 GM sees bankruptcy risk
- 4 For Wall Street, March is best month since 2002
- 5 North Korea missile consistent with satellite: U.S.
- 6 HK, Shenzhen agree on innovation plan
- 7 $6.6b Gov't deficit recorded
|
- 1 IBM hikes full-year outlook, shares shine
- 2 IBM hikes full-year outlook, shares rise
- 3 Germany denies report that RHJ leads race for Opel
- 4 BofA operating under secret regulatory sanction: report
- 5 GM to spend $1 billion in Brazil on new family of cars
- 6 Microsoft Office users attacked by cybercriminals
- 7 Autos lift retail sales as inflation perks up
|
|
