General Electric reorganized its struggling power business as one of Larry Culp's first moves as CEO but RBC believes the changes to the business unit have only just begun.
General Electric reorganized its struggling power business as one of Larry Culp's first moves as CEO, but RBC believes the changes to the business unit have only just begun.
div > div.group > p:first-child"> GE is likely to pursue sales of individual power businesses, including steam, nuclear, and power conversion, RBC analyst Deane Dray said in a note on Tuesday."We believe that GE's endgame is to shrink Power down to just the core gas turbine equipment and services platforms that have technology overlaps with Aviation."
RBC picked GE as the industrial company"most likely to execute a stock-moving divestiture" or spin-off this year, the note said. GE is facing a tough year, lead by problems in power. But Culp has given shareholders long-term optimism about the company's fortunes, saying earlier this month that the power business"is in a serious turnaround mode."
In the company's third-quarter earnings report, the first under Culp, GE announced it would reorganize the power business into two divisions: a gas products and services unit and the remaining power units. The latter power portfolio consists of the steam, electric grid, power conversion and nuclear energy businesses. RBC estimates those four businesses have annual revenue of $2 billion, $5 billion, $1 billion and $500 million, respectively.
"It is our position that all of the remaining businesses in Power Portfolio have been deemed non-core and are likely being evaluated for future divestitures," Dray said."Ultimately, we believe that management's endgame is to shrink its Power businesses down to just the core gas turbine platforms that have strategic linkages and shared technologies with its Aviation segment," Dray added.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Korean Air shareholders oust tycoon from board in landmark voteKorean Air Lines Co Ltd shareholders rejected an extension for CEO Cho Yang-ho a...
Read more »
Giants CEO Larry Baer suspended three months by MLB after incident with wifeMajor League Baseball has suspended San Francisco Giants president and CEO Larry Baer following an investigation into a physical incident between Baer and his wife.
Read more »
Giants CEO Baer suspended until JulySan Francisco Giants president and CEO Larry Baer was suspended without pay until July 2, 2019, MLB commissioner Rob Manfred announced Tuesday. Baer has been on leave since video of a public altercation with his wife surfaced. The footage captured by TMZ showed Baer aggressively pulling something from
Read more »
Roku CEO explains why Apple is putting its streaming services outside its famous walled gardenApple's decision to distribute its new streaming TV service through third parties is an unusual choice for the company.
Read more »
Nvidia CEO says no plans for more acquisitions after Mellanox dealU.S. chip supplier Nvidia Corp has no plans for further acquisitions for the tim...
Read more »
Electronic Arts, the major video game company behind 'Madden' and 'Apex Legends,' is laying off about 350 employeesEA CEO Andrew Wilson announced the layoffs one month after competitor Activision Blizzard announced 800 layoffs.
Read more »
Activist investors seek ouster of Bed Bath & Beyond CEO; shares surgeBed Bath & Beyond Inc's long-time Chief Executive Officer Steven Temares ca...
Read more »
Bed Bath & Beyond's Stock Roars Higher As Activists Seek To Oust Longtime CEOA trio of activist investors are also looking to replace the entire, 12-person board.
Read more »
Boeing CEO says company is 'humbled and learning' from deadly Ethiopian Airlines crashBoeing CEO Dennis Muilenburg released a statement in support of Ethiopian Airlines following the Flight 302 crash that killed 157 people in March.
Read more »