A strong growth in equipment orders from the emerging economies saw US conglomerate General Electric record a 52 percent jump in its net profits for the fourth quarter in 2010. Net profit was reported at $4.5 billion (£2.8 billion) while revenues grew by 1 percent to $41.4 billion, topping analyst’s expectations.
GE has a very well diversified business, from finance to heavy engineering and is seen by many as the bellwether of the world economy.
Its equipments order grew by 20 percent while services order grew by 5 percent and overall order growth was recorded at 12 percent.
Perry Adams, Portfolio Manager at Huntington Private Financial Group said: “They had a very good quarter. Organic growth on the industrial side was good. Orders were strong, backlogs were strong”, adding that “Their emerging market drive is getting good results”.
GE announced a spate of joint venture deals with Chinese businesses during President Hu Jintao’s visit to Washington.
The deals include helping Chinese firm Shenhua Energy develop cleaner chemical and power generation technologies from coal and coal based products.
GE will also help Aviation Industry Corporation of China develop jet engines for its first indigenous commercial carrier.
GE sees a substantial part of its revenue coming from China in the future and thinks that its business in China has the potential to grow in double digits.
In a related movement, President Obama has named GE Chief Jeffrey Immelt the head of a new economic advisory panel.