GE Plans Restructuring

By Jack Burke13 November 2017

GE CEO John Flannery announced the company would streamline its broad portfolio by selling its locomotive and lighting units and concentrate on power generation, aviation and healthcare.

Flannery also said the company will consider selling its controlling stake in Baker Hughes, the company that now houses its oil and gas unit.

The 125-year-old company also cut its dividend—for only the third time in history—and its profit outlook.

“Complexity has hurt us,” Flannery told investors during a presentation. “We have not performed well for our owners. The management team is completely devoted to doing whatever it takes to correct that. Going forward, we really just have to focus on how we can create the most value from the portfolio of assets we have for our owners. We are going to do that with a very dispassionate eye.”

During the presentation, GE said the company needed “right-sizing” in its power segment to reduce costs. The company is looking for more than US$1 billion in structural cost savings and needs to address overcapacity.

 

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, Diesel Gas & Turbine News; News features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Latest News
Wärtsilä delivers LPG systems for 15 carriers
LFSS enables the use of LPG as an environmentally sustainable marine fuel
Yanmar engines power South American live fish carrier
New vessel includes two Yanmar generator sets and a Yanmar main propulsion engine
Carrier design for liquefied CO2 wins approval
ClassNK issues OK for design developed by Mitsubishi Shipbuilding