General Electric Co Plc (GEC), the UK-based giant which is determined to transform itself into a leading player in telecoms equipment and electronics, is still on the lookout for further strategic acquisitions to strengthen its businesses in specific markets and technologies.
With 1.1bn pounds ($1.6bn) cash on its balance sheet and a share price that rose 2.4% yesterday to 641 pence on better-than-expected annual figures, GEC is not short of resources to follow-up its acquisitions this year of Fore Systems Inc for $4.5bn and Reltec Corp for $2.1bn.
After a year in which it agreed to sell its core defense business, GEC increased net profits by 107% to 1bn pounds ($1.6bn), in the year through March 31, on revenue that increased 6.4% to 7.6bn pounds ($12.3bn).
GEC says that the combination of its communications businesses gives it the technology and market presence to take advantage of the explosive growth in data communications with the expansion of the internet. Sales in the communications division increased 8% to 1.8bn pounds ($2.9bn), which GEC argues is a strong performance, given the changes in Marconi Communications’ business structure.
With a listing planned on Nasdaq at the end of this year, the company is considering changing its name to Marconi to avoid confusion with the US-based General Electric.
