The Vice Chairman of General Electric Co. John G. Rice announced that the global economy “was getting better, not worse”. Mr. Rice also said that “there was tremendous underlying demand for infrastructure” beneath lower growth expectations for emerging markets, as cited by the Wall Street Journal.
Mr. Rice gave a private interview at the World Economic Forum in Davos and commented a variety of topics related to General Electric and its substantial operations in developing markets from China to Turkey. He also commented on the infrastructures demand in China, which he said “remains great”.
Currently, the company is undergoing through severe changes and restructuring. It has been cutting its higher-margin financing activities and investing its classic industrial businesses. The Vice Chairman also shared that General Electric expects 70% of operating profits to be contributed by the industrial businesses, with the remainder from its banking business. He also said that the infrastructure of the companys work was changing, thanks to which General Electric was becoming more of a “matchmaker” between financing sources and governments pursuing large new projects.
Mr. Rice said: “Weve got to fill the void. We are doubling down on our financial teams” ho help arrange the deals. “Thats helping us win orders. The Vice Chairman of General Electric also said that the company has an advantage in the marketplace “it if can bring a way to get the deals financed.” In addition, he also emphasized on the fact that many governments still have not find the best ways to stimulate maximum investment in new energy projects and gave an example with the controversial wind-production tax credit also known as “PTC” in the U.S.
Mr. Rice also said and was cited by the Wall Street Journal: “On again, off again approvals was the way to waste billions. There was no ability to plan. The challenge is for governments everywhere to make mid- and long-term decision on a short-term election cycle.”
According to CNN Money, the current share price of General Electric Co. is 0.65% down, and its one-year return rate is 7.88% down. The 14 analysts offering 12-month price forecasts for General Electric Co. have a median target of 28.50, with a high estimate of 32.00 and a low estimate of 27.00. The median estimate represents a +10.38 increase from the last price of 25.82.