With an unprecedented drought in California and water shortages around the world, Heiner Markhoff, the President and CEO of General Electric Water & Process Technologies, says his unit is well-positioned for growth. Markhoff said the Water & Process Technologies unit will grow at a rate that outpaces GDP and GE’s industrial growth projections. With GE’s move away from GE Capital, Markhoff said the industrial divisions become the growth drivers for the company and the most important part of GE for future earnings growth. Markhoff’s division is part of GE Power and Water, the largest industrial division. He said there’s a lot of focus on making sure the unit delivers on the opportunities it has. Markhoff said ‘looking at the alignment of what we do with what the world needs, I think we are very well -positioned.’ About 55% of the unit’s business is outside the U.S., but Markhoff said the U.S. continues to be an important market. Markhoff said in the current economic cycle, some investments are being delayed but Water & Process Technologies tries to keep the order pipeline fairly full. He said the biggest challenge operationally on a day to day basis is the strength of the dollar. Markhoff added ‘If you do business in many countries around the world, foreign exchange and how to manage it, to hedge it, to reduce your exposure becomes something that operationally and financially you really have to put effort on.’ He added organic growth rates continue to be healthy and the order pipeline looks good.
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