Brazil becomes more important for American GE
Valor Econômico - 01/10/2008
The Hyatt hotel, in the South of São Paulo city, lived some busy days in the beginning of the week. Some of the most important Brazilian leaders such as bankers José Safra, Gabriel Jaramillo and Fábio Barbosa and entrepreneurs Eike Batista, from MMX, David Feffer, from Suzano, Vitor Hallack, from Camargo Corrêa, and David Barioni and Marco Bologna, from TAM, in addition to the president of the Brazilian Central Bank, Henrique Meirelles were there to meet one of the most important names of the corporate world: Jeffrey Immelt, CEO and President of the Board of Directors of the American giant General Electric, one of the largest companies in the world, with market value of nearly US$ 362 billion - twice the value of the Brazilian foreign exchange reserves. The one-to-one meetings speak volumes about GE's intentions for Brazil. "Latin America is a key region for the growth of the company in the next years", says Immelt, in an exclusive interview to Valor, the first one he gives to a local newspaper. Today, the region represents only 3.5% of General Electric's sales of US$ 172 billion; the company produces from hospital equipment to microwaves, from locomotives and compressors to airplane turbines, besides rendering financial services. But this participation will be certainly bigger in a few years. Immelt's goal is that the GE's earnings reach US$ 10 to US$ 12 billion in Latin America in 2010. From that total, Brazil may contribute with one-third. "That means a growth between 15% and 20% each year, above the growth projected for the whole company", says the well-humored officer. The growth amidst the American turbulence is the result of the strategy consolidated by Immelt ahead of GE. The officer decided to go deep into the concept of globalization and, today, the company is present in one hundred countries. In 2007, for the first time in history, more than half of the income came from operations outside the United States. And the diversification of products and geographic location helps to compensate the weaker performances in one or another country. In Brazil, which has recently replaced Mexico in the role of GE's business headquarters in Latin America, part of its great news for 2008 will be its entrance in the real estate sector. Immelt says that he wants to repeat here the well-succeeded example of GE in Mexico and he does not hide that he is searching for a local partner. The name is kept under secrecy, but Valor has verified that, among the options presented by JP Morgan is Cyrela. The real estate company, controlled by Elie Horn, has a subsidiary that fits like a glove into Immelt's plans, Cyrela Commercial Properties, focused on commercial undertakings.