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It might not mean anything. Or it might mean a lot of things.But Citi’s Deane Dray was surprised by the under-representation of two huge growth countries at GE’s Global Growth meeting yesterday.
Dray wrote about it in a note to clients today:
Biggest Surprise: Russia and India were not part of the GE growth showcase — Even though they represent the “R” and “I” in the BRIC moniker, GE did not have a country head from either Russia or India on the agenda. The revenue contribution in Russia is still relatively small and India growth has been somewhat disappointing. Despite the modest contributions from these two countries, GE remains confident about achieving its longer term emerging markets revenue and profitability targets.
General Electric might be the mother of all global conglomerates. So, savvy economists and non-GE investors often pay careful attention to the company’s every move.
It’s possible that GE’s Russia and India representatives could’ve just had more important things to do during the meeting.
Regardless, it provided Dray with the opportunity to note that contributions from Russia and India haven’t been that significant to GE.
BRIC countries are frequently cited by corporations as sources of blazing hot growth. However, investors shouldn’t blindly expect consistent growth because the company they’re invested in has a footprint in any of those countries.