© Reuters. GENERAL ELECTRIC WANTS to sell HIS POLE FOR POWER DISTRIBUTION
by Alwyn Scott and Greg Roumeliotis
NEW YORK (Reuters) – General Electric (NYSE:GE) said Friday that he is thinking, always to its eventual dismantling, but that this consideration was secondary to the improvement of its performance.
The industrial conglomerate, established 126 years ago, was intended to separate activities representing at least $ 20 billion (16.2 billion euros) to reduce its costs and boost its profits within the framework of a restructuring plan over three years was launched by its CEO, John Flannery, has been in office since the 1st of August.
General Electric has announced on Friday that it more than tripled its earnings from its continuing operations in the first quarter, thanks to the good performance of the divisions of aviation and health, which has pushed its title to Wall Street.
Some analysts have however pointed out the relatively poor outcomes of the conglomerate on a non-adjusted.
When asked about the possibility of a breakup of GE, John Flannery, said study all the options. He stressed, however, that the conglomerate sought to ensure that its activities achieve good performance.
“There are no sacred cows”, he said during a conference call with analysts. “We look at a number of structures. We are working on it in detail with the board of directors.”
The boss of GE has promised to give to investors the news on the subject “in the coming months”.
The shareholders of GE should elect the members of the board of directors next week.
The american conglomerate also said Friday it has decided to sell its division of power distribution and expects to be able to announce an agreement by the middle of the year, confirming information from Reuters in February.
Activity for sale manufactures gas turbines supplying energy to the industrial sites. It includes the models Jenbacher and Waukesha, which cover the segment of turbines of small and average power ranging from 100 kilowatts to 10 megawatts.
On the 18th of February, sources close to the matter have reported that the industrial conglomerate american thought about the sale of this activity, which could be valued up to two billion dollars (1.6 billion euros).
An assignment of industrial gas turbines would allow GE to simplify the operation of his division of power generation (“power”), whose earnings plunged 45% last year.
Finally, GE is studying the possibility to merge its transport division, which builds engines for trains, Wabtec, a manufacturer of america’s rail industry, believes a source close to the folder.
This is only one of the possibilities to study at the industrial conglomerate, and no decision has yet been taken, ” added the source.
GE and Wabtec have not responded to the solicitation of comments in the immediate future. Bloomberg first reported the project.
(Claude Chendjou and Wilfrid Exbrayat for French service, edited by Bertrand Boucey)