Tomahawk, WI 09/10/2014 (Basicsmedia) – General Electric Company (NYSE:GE) push to become a pure technological and infrastructure company has seen it spun its appliances business for $3.3 billion to Electrolaux, according to CNBC’s Mary Thompson. General Electric latest move is part of a plan to simplify its operations having already spun its credit card business.
“It’s become harder and harder to tell the story of how GE appliance business is’ aligned with the General Electric company. General Electric company wants to be a pure play technology and infrastructure business focused on regions of global growth and solving’ hard problems like building power plants,” said Chip Blankenship, GE President and CEO of the Appliance and Lightning business.
General Electric Company (NYSE:GE) CEO, Jeffrey R. Immelt, is trying to align the company’s operations to key sectors that have over the years accounted for up to three-quarters of the total revenue. Some of the high-growth high-value industrial segments that GE looks set to focus more on, include energy, water and aviation. The conglomerate giant is also planning to pay a closer watch on its financial business service that has not been performing well considering it used to account for almost 50% of the total revenue.
“With appliance profits accounting for less than 3% of GE’s total, the loss of those earnings will be more than offset by the deal Immelt struck in June buying the power business at Francis Alstom for $17 billion its completion focused to Lift GE industrial profits to that 75% level.
The spin-off of the credit unit, as well as the expected sale of real estate holdings, are expected to result in a decline in General Electric Company (NYSE:GE)’s profit. The process of streamlining operations has also seen the company sale its Fuel dispenser business for $485 million and Rail Signaling business for $825 million.
The improved cash balance is expected to give General Electric Company (NYSE:GE) the much-needed financial muscle to spur growth in its other key sectors that have the potential to grow even further.
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