GE Sees Opportunity In Developing World's Urban Centers
Dow Jones & Company, Inc. - Jun 28
General Electric Co.
(GE) says it is in a prime position to capitalize on infrastructure projects as
growing populations put stress on water, power and transportation systems in
fast-growing urban centers throughout the developing world.
GE Vice
Chairman John Rice
, in a presentation to investors in
Budapest
,
Hungary
, monitored via Webcast, said the Fairfield, Conn.-based company is "
positioned to win with these demographics." GE makes desalination and water
treatment systems, power generation equipment and locomotives and aircraft
engines.
Global population is forecast to reach 9.1 billion by 2050, with 80% of that
number in developing countries, GE said. GE expects about
$25 billion
in revenue from developing countries this year, but says that figure could
climb to
$55 billion
by 2010 with the growing population in the developing world.
Last week, GE indicated at an analyst conference it expected much of its
growth over the next 20 years to come from
China
and
India
. In Tuesday's presentation, GE executives outlined the company's activities in
those countries, but also cited noted substantial growth opportunities in the
Middle East
,
Russia
, Eastern
Europe
and
Africa
.
With cities like Lagos and
Dhaka
on track to become bigger than New York, there will be about
$3 trillion
invested in infrastructure in the developing world through 2014, the company
projected.
Steve Schneider
, chief executive of GE Asia, said the business brought in
$ 17.5 billion
in 2004 and that figure is expected to climb to
$33 billion
for 2008, with
China
and
India
overtaking
Japan
as the most important markets.
As
China
and
India
transform from low-cost manufacturing and services economies, respectively,
into global players, GE sees providing planes, locomotives, power turbines,
water treatment and financing for all those purchases.
Meanwhile, investments in energy exploration in the
Middle East
and
Africa
are spurring growth there, and the region presents an approximately
$100 billion
market opportunity for GE through 2010, said Nabil Habayed, CEO of GE's
Middle East
&
Africa
business.
For the first quarter, GE earned
$4.04 billion
on revenue of
$39.8 billion
.
- By Christopher Scinta, Dow Jones Newswires; 201-938-5218; chris.scinta@
dowjones.com
(END) Dow Jones Newswires
06-28-05
1316ET
