General Electric Co. (NYSE: GE)’s Appliance & Lighting president, Jim Campbell, said that he believes that his business unit will see rising revenue and profit during the second half of the year, citing federal stimulus programs for boosting industry sales.
Campbell said that the consumer appliances sector “is probably behind the curve” in terms of a broader economic recovery. “If home prices rise, people are more likely to put more money into their homes,” he said in an interview with Dow Jones Newswires on Thursday. “We need the [economic] fundamentals to change” and the housing sector to revive.
He added that he is optimistic that home building and buying will rise in 2011, which will push for a stronger demand in appliances. Campbell said in his interview that the housing industry will likely remain weak for the remainder of 2010.
“The stimulus programs had the desired effect,” Mr. Campbell said. “It got people in, it got them buying and it got them buying energy-efficient products.”
Sales of appliances in the U.S. have been up about 8% industry-wide during the second quarter, which Campbell credited largely to stimulus programs.