Financial crisis weighs on executives' minds

NEW YORK (Reuters) - The most serious financial crisis in decades has caused business executives and government officials around the world to rein in expectations for short- and long-term growth and warn that business volatility will be around for some time.

In a series of interviews with Reuters reporters, executives -- from industries as varied as industrial manufacturing to property to auto makers -- spoke of the widening global credit crisis and their many concerns.

Most said they were keeping a close eye on the global banking sector, following the passage of the $700 billion bailout package and the continuing global credit problems.

Stock markets around the world continue to struggle due to concerns the bailout will not be enough.

This is Reuters' sixth wrap-up of comments on the crisis.

Following are excerpts and highlights from interviews with executives on Friday:

FORD MOTOR CO CHIEF EXECUTIVE ALAN MULALLY

Mulally ruled out a bankruptcy filing, saying the No. 2 U.S. automaker was focused on its turnaround and managing its cash "very, very carefully" as a market slowdown spreads to Europe and Asia.

A bankruptcy filing "makes no sense to us," Mulally said in an interview. "Clearly the most important thing for us is to continue to build our viable Ford."

Mulally's comments came as the automaker announced the retirement of CFO Don Leclair, the executive who helped steer Ford through a $23 billion borrowing program in 2006 that Mulally said gave the company a cushion in the current downturn.

GENERAL ELECTRIC CO CFO KEITH SHERIN

The credit crunch and housing slump have made it harder for GE to spin off its consumer and industrial arm to shareholders, but the U.S. conglomerate continues to pursue that option, Sherin told Reuters.

GE continues to get queries about buying just the appliance part of that business, and would sell it for the right price.

"If we got a tremendous offer for appliances, we'd have to evaluate that," he said. The company "continues to get a tremendous amount of interest" in the business.

GE said in May it wanted to sell its appliance unit -- the No. 2 player in the category in the United States behind Whirlpool Corp. In July, it changed course, saying it would wrap that business together with its lighting operation and some electrical-distribution equipment businesses, and spin off the combined business to shareholders.

The biggest barrier to the spin-off, which GE aims to do next year, is the slumping housing market, Sherin said.

"If you look today with housing where it is and with questions about the economy where it is, it's a challenging transaction," Sherin said. "The world we're seeing today is (in) a lot of turmoil. But once the world sees that there will be a better day ahead, I think this is still a very viable transaction. We're still working on it."

EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER JOAQUIN

ALMUNIA

Financial leaders of the Group of Seven should urgently address bank liquidity problems, recapitalization and the functioning of the interbank market to calm markets with a comprehensive package, Almunia said.

"What the markets are waiting for is that political leaders should deliver a comprehensive approach," he told Reuters just before a meeting of finance ministers and central bankers from the United States, Canada, Japan, Germany, France, Italy and Britain -- called the Group of Seven.

He said that while the coordinated global interest rate cut last Wednesday was very important, it was not enough on its own.

"The markets are not taking into account isolated initiatives -- national or global, like the coordinated interest rate cut. I feel they are waiting as urgently as possible for a comprehensive approach at the G7 and EU level," Almunia said.

KHON KAEN SUGAR INDUSTRY EXECUTIVE CHALUSH

CHINTHAMMIT

The Thai sugar miller said it had scaled back a planned bond issue in November, the latest Thai company to adjust financing plans during the global credit crunch.

Chinthammit said the 1.5 billion baht ($43.6 million) debt issue, down from a previous 2.0 billion baht, was sufficient to meet the company's funding needs.

"We have not delayed our bond sales," he told Reuters. "The size is small and I feel it should get a good response from investors."

Khon Kaen, the country's fourth-largest miller, follows other Thai companies that have delayed or scaled back bond issues, including Preuksa Real Estate and hotel-and-food company Minor International

But the worldwide credit crisis has not deterred others.

Majority state-owned energy giant PTT is pushing ahead with the domestic sale of a AAA-rated bond worth 10 billion baht next week.

(Reporting by David Bailey, Scott Malone, Jan Strupczewski and Viparat Jantraprap; editing by Carol Bishopric)