Rapid Growth in Latin America, China, Australia & New Zealand, the Middle East and Africa Driving Results
RIO DE JANIERO--(BUSINESS WIRE)--GE [NYSE: GE] will hold today an investor meeting to present its global outlook and long-term global growth plans. In advance of the meeting, GE Vice Chairman John Rice confirmed GE's 2012 outlook and expectations for continued double-digit revenue growth in its global growth regions in 2012 and 2013.
"GE has doubled revenues in twenty-seven countries in five years and our global revenue has expanded to more than 55% of our total industrial revenues. Approximately 66% of our record $200 billion backlog comes from global markets and over half from the growth regions," Rice said. "We have established a significant foundation for continued growth, not only in the BRIC countries, but also in markets positioned for the next generation of growth. By 2025, these growth markets will constitute 50% of world GDP."
At the meeting Mr. Rice will discuss GE's double-digit revenue growth across the global growth markets. GE anticipates 20-25% growth in Resource Rich regions such as Latin America, Australia & New Zealand, the Middle East and Africa. GE expects 10-15% growth in Rising Asia - China, India and the Association of Southeast Asian Nations (ASEAN). In 2011, GE's revenue grew in China by 29%, in Latin America by 36%, in Sub-Saharan Africa by 14%, and in Australia & New Zealand, by 67%.
"We are continuing to invest in size and scale to optimize GE's global and local capabilities," said Mr. Rice. "We have a strong, balanced business portfolio geared to accelerate with an improving global economy. We are building competitive advantages to drive organic growth and margin expansion across our businesses.
"The world needs more power, transportation, healthcare services, clean water and financing to meet the needs of growing populations and an emerging middle class," Rice said. "GE has the solutions to capitalize on this long-term growth dynamic through its technology leadership, geographic scale, services, and balanced capital allocation. This will drive our future in higher margin industrial businesses in these growth markets."
Mr. Rice confirmed GE's 2012 total company framework of double-digit earnings growth from its Industrial and Capital segments. GE's total company results are being driven by strong organic revenue growth in its Infrastructure businesses, improvements in GE Capital's real estate portfolio and growth from GE Capital's higher margin businesses. Mr. Rice also confirmed GE's total company framework of increasing margins by approximately 50 basis points in 2012 and to providing dividend growth to shareholders in line with earnings.
At the investor meeting, GE regional CEOs from Latin America, China, Australia & New Zealand, the Middle East, and Africa will present their outlook for GE's businesses in their markets. They will discuss opportunities where GE is especially well positioned to succeed: distributed power; mining; oil and gas; rural and remote healthcare; transportation; and opportunities from promising new partnerships.
Webcast Information
The GE Global Growth Investor Meeting event will be webcast live beginning at approximately 7:00 a.m. Eastern. GE invites investors and the media to view the live webcast and slides from the event at www.ge.com/investors. The webcast also will be available for replay and the slides will be archived.
About GE
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.
Caution Concerning Forward-Looking Statements:
This document contains "forward-looking statements" -- that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in the European sovereign debt situation; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation's (GECC) funding and on our ability to reduce GECC's asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (Grey Zone); our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level; our ability to convert customer wins (which represent pre-order commitments) into orders; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; strategic actions, including acquisitions, joint ventures and dispositions and our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Trevor Schauenberg
GE Corporate VP Investor Communications
[email protected]
1-203-373-2424