GE Infrastructure keeps forecast and eyes Asia
Written on June 23, 2008
General Electric Co’s (GE.N: Quote, Profile, Research, Stock Buzz) infrastructure unit, GE Infrastructure, said it will maintain its business growth forecast of 10-15 percent for 2008, despite rising costs.
John Rice, chief executive and a GE vice chairman, said he expected rising inflation and higher commodity prices to be challenges, but noted demand for GE’s products and services was still strong.
“We are providing critical products and services to companies and countries who are mining and selling commodities. Demand for these products has surged with the increase in commodities costs,” Rice said in an e-mail interview on Monday.
Prices of commodities such as copper, steel and gold have risen steadily this year due to increased demand from China and high oil prices.
“Demand for our products continues even as we have to raise prices due to raw material costs going up,” Rice said, ahead of his visit to Singapore for an industry conference on Tuesday.
“We are focusing on reducing our expenses, and . online payday loan. payday loans. finding ways to cut costs by managing our supply chain, controlling costs and improving efficiencies,” he said.
In April, GE Chief Executive Jeffrey Immelt increased the group’s 2008 cost-cutting target by $1 billion.
GE is the second-biggest U.S. company by market value after Exxon Mobile Corp (XOM.N: Quote, Profile, Research, Stock Buzz) and its infrastructure unit — which makes engines, electrical turbines and water purification plants, as well as providing financial services — is its largest unit, contributing $57.9 billion to total revenue last year.
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