City File: GEC

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The Independent Online
GEC is expected to turn in another solid performance this Wednesday, with pre-tax profits up 7 per cent to pounds 865m. Despite unfavourable conditions in the defence industry, GEC's Electronic Systems subsidiary is well placed with a strong order book.

Power Systems will also improve on its performance last year, though some of the smaller businesses in industrial equipment and power transmission have been hit by recession.

Also in the pipeline are a pounds 579m order from BT and plans for GEC-Alsthom to take a one-third share in Eurorail, with Trafalgar House and BICC. The new consortium will bid for all the big UK rail contracts.

GEC is not the most exciting of stocks but, at 338p, it's safer than houses and worth holding.