Brazil surpasses Mexico in GEs businesses
Valor Econômico - 01/20/2009
Little more than two years ago, when he took over the command of American General Electric in Latin America, Brazilian Marcelo Mosci used to spend nearly 90% of his time overseas, in meetings at the headquarters and in constant trips to visit the group's operations in the 34 countries of the region. Today, 60% of the time is dedicated to Brazil, which, through the years, has been increasing its participation in the volume of businesses made by the company in the region. Last year, for the first time, the Brazilian operation surpassed the Mexican in profit, reaching US$ 3.4 billion, out of a total of US$ 8.2 billion obtained in Latin America. The challenge now is how to keep the performance of the region from now on with the world economic crisis in the most diverse sectors of operation of GE in the world - from production of locomotives, airplane turbines, equipment for the extraction of oil, to x-ray devices for hospitals, besides the entertainment and financial areas. Looking to 2008, GE has nothing to complain of its performance in Latin America: it was a record increase of 27%. Four of the business had earnings above US$ 1 billion each, two in infrastructure and two in the financial sector. Brazil had one of them. Mosci is aware that such performance will hardly be repeated and he recognizes 2009 will be a very difficult year. Nonetheless, he is optimistic and hopes to grow at a two-digit rate amid the setting of slowdown in the international economy. Brazil, he said, which has an image of relative solidity abroad, has the conditions that allow a GDP growth of, at least, 2%. According to Mosci, the country needs to invest a lot in oil, gas, energy, basic sanitation, in the health area, and in several other infrastructure works. He remarked that the performance of 2009 will be the result of the order portfolio formed last year that would be assured in this first half year. "The concern is whether or not we are going to have order in the second half."