"GE is focusing on buying "technology-driven companies" whose products will help modernise and improve the efficiency of power grids worldwide"

GE T&D unit confirms eyeing $5 bln in sales
Wed Jun 10, 2009 12:33pm BST

PARIS, June 10 (Reuters) - General Electric Co's (GE.N) transmission and distribution unit is still aiming to reach $5 billion in annual sales within five years, despite the economic crisis, a senior executive said on Wednesday.

Bob Gilligan, vice president of the transmission and distribution unit, which currently has sales of just over $2 billion, confirmed the target and told a news conference: "We view the T and D market place as having very strong underlying market dynamics."

The T&D unit makes products that help deliver electricity, including transformers, electricity meters and energy management software.

He said the unit would grow because emerging markets were building new infrastructure while mature markets had ageing infrastructure that needed to be renovated and upgraded.

"We also see the need for more intelligence to be brought in to the grid globally to support renewable power. So all those things are favourable for the industry over the long term. Therefore this is an area that GE will continue to invest in," he added.

While about 80 percent of GE's T&D equipment sales come from North America, Gilligan said he would like to see an equal share of sales in Europe.

To grow, the company is focusing on buying "technology-driven companies" whose products will help modernise and improve the efficiency of power grids worldwide.

When asked whether GE would be interested in buying the power transmission and distribution (T&D) unit of French reactor maker Areva (CEPFi.PA) if it was up for sale, Gilligan replied:

"I will not comment, but Areva is an important player in the T&D space, and everyone is interested to see how it plays out because (the company) has a very good position."

Last month, a source close to the situation told Reuters that Areva would consider selling the profitable business as part of measures to fund investment needs estimated at over 10 billion euros.

Sources close to the matter have said in the last few weeks that the cash-strapped French government, which indirectly owns more than 90 percent of Areva, was reluctant to opt for a capital increase as requested by Areva's management, and favoured instead the sale of the T&D business. (Reporting by Muriel Boselli, editing by Will Waterman)