According to a
report, diversified conglomerate
General Electric Company
) is anticipating huge infrastructure orders to the tune of $10
billion in 2014 from Latin America on the back of surging demands
for improved facilities for basic amenities and well-being. The
news is encouraging for the company as it aims to focus on its
industrial manufacturing roots and reduce dependence on the
During the next few years, General Electric expects revenues to
increase 10-15% annually in Latin America, buoyed by higher demand
to cater to the infrastructure requirements for industrial services
such as power generation, transportation, water and oil. The
company expects to achieve this through growth in markets in
Argentina, Peru, Colombia and Chile, partially offset by a slowdown
in Brazil - the biggest economy in the region.
This is inspiring news for General Electric as it focuses on its
core industrial businesses. In Mar 2014, General Electric filed an
initial public offering (IPO) of its North American consumer
lending unit to shrink its finance business by 2015. The strategic
move was arguably the biggest step in restructuring GE Capital's
portfolio to shield the parent company from intense market
volatilities that plagued the market during the 2008-09 financial
The spin-off will realign the corporate strategy of the company to
a manufacturing-based entity with emphasis on big-ticket items such
as medical equipment and scanners. With the spin-off, General
Electric expects operating earnings from its industrial business to
aggregate 70% of the total operating earnings of the company by
General Electric is one of the largest and the most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content, and
industrial products, the company serves over 100 million customers
worldwide. Its segments include Power & Water, Oil & Gas,
Energy Management, Aviation, Healthcare, Transportation, Appliances
& Lighting, and GE Capital.
General Electric currently has a Zacks Rank #3 (Hold). Other
companies in the industry that are worth mentioning include
Compass Diversified Holdings
Carlisle Companies Inc.
), each having a Zacks Rank #2 (Buy).
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