Jeffrey Immelt On General Electric's Exposure In Russia, Growth In Emerging Markets
A global heavy engineering and technology company like General Electric Company (NYSE: GE) might be expected to be significantly impacted with the worsening Russian economic crisis or the slowdown in other emerging markets. However, according to GE’s CEO & Chairman, Jeffry Immelt, the company is so well diversified across the globe that turmoil in one particular reigon doesn't affect it much.
Immelt was on CNBC to discuss GE’s exposure to Russia and where he sees growth in the emerging markets.
"Our exposure to Russia is about $2 billion," Immelt said. It’s about 1 percent of the company, it's very small. We like Russia to be in better shape. I like Russia in the long term. We, tomorrow, we are going to book 2.6 Gigawatt order from an emerging market for electricity. So, the needs are still there. We are in 170 countries."
He continued, "If gas prices go down, the U.S. gets better, China gets better, India gets better -- that's all good for GE. So, we are just balancing away. I personally think some of these countries are going to have a tough time. Iraq is going to have a tough time, Libya is going to have a tough time, Venezuela is going to have a hard time. Saudi has $500 billion of reserves, their incremental cost of producing oil is $4 -- I think the Saudis are going to be just fine."
"I do a ton of business in China. China is not that bad. We see decent growth in China right now. So, the incremental buyer of everything in the world is really the U.S. economy, the Chinese economy. Those two economies are pretty good."
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