Jeffrey R. Immelt -Chairman and Chief Executive Officer
When you look at the whole package of infrastructure for the third quarter, we see broad-based strength continue and we are forecasting the overall segment profit to be up 15% to 20% for the third quarter ... if you look, the total orders for infrastructure, 46% year-to-date, the revenue so far is up 10%. We are continuing to build a backlog. We are shipping a lot of equipment and growing the install base, and that is going to lead to a great future service business and future margin expansion...
Peter Nesvold - Bear Stearns
... What is your outlook on the restructuring actions in the back half of this year? Which businesses are you focused on primarily? Are your expectations discounted into this business segment, or are they at the corporate item line?
Jeffrey R. Immelt
Basically, when you look at restructuring for the second half of the year, we are going to be focused on things that give us the biggest payback. We have some things in the industrial segment where we are able to get a good payback. We have some things in the infrastructure segment where we are able to get a good payback. Those would be the two places that you probably see that activity going on...
Jeff Sprague - Citigroup
Thank you. Good morning, everyone. Can we just explore this operating leverage question a little bit in more detail? First, the comment that service and products come into parity -- is that something in particular accelerating or decelerating to bring things into balance, or is it just kind of now lapping the tough comparisons in the product side?
Keith Sherin, CFO
You know, I was talking about infrastructure. If you look in the second quarter, the infrastructure product revenue rates were up close to 20% and the services revenues were up around 8% to 9% in total across the infrastructure. So you know, you have got a 2X factor here on equipment delivery growth versus revenue on services.
Now, in the second half in infrastructure, the equipment deliveries continue at this great pace. The difference is that you had good equipment deliveries that make it a little more comparable in the second half of last year. For us, it is not a deceleration of continuing to build the install base -- it is just a different comparison in terms of service and equipment mix...
The infrastructure equipment is about 43% of revenue in the second half and that is pretty much flat with last year, and the services are 57% of revenue in the second half.
Basically what is happening is our equipment, as the orders have grown and grown over the last 18 months, the equipment delivery started to ramp up in the second half of last year. We ended up with continued good volume of equipment going out, but again it is against comparisons of pretty good volume last year, and then the service and equipment mix kind of levels off in the second half, which does improve profitability and margins.
On GE's Fiscal 2Q conference call, Executives discuss successes in GE's infrastructure unit: