GE Business Restructuring Into The Final Stage
Jul 25, 2018

According to "Nikkei Business News" reported on July 23, the United States General Electric (GE) business restructuring into the final stage. On July 20, local time, it was announced that it will withdraw from the ancestral lighting business in 2018. Among the seven main businesses, such as medical devices and transportation, four will be spun off and sold, and the business will be concentrated in three departments: electricity, aviation and renewable energy. GE will bid farewell to the past integrated business model and act as a "Simple GE".


General Electric Chief Financial Officer (CFO) Jamie Miller announced on July 20th that the April-April 2018 earnings conference call "scheduled to sell lighting business during the year." The company's lighting business has previously withdrawn from the European, Middle Eastern and African markets, and will soon sign a sale contract for the US lighting business.


Jamie Miller did not disclose the sale, but the US media speculated that it might be sold to Chinese companies. The company's electrical lighting business has annual sales of more than 100 million US dollars, and its contribution to revenue is minimal, but for GM is a special business related to the invention of Edison. For a long time, GE has attached importance to this business as much as its core power and aviation businesses.


GE plans to complete a series of business sales and restructuring by 2020, compressing $25 billion in interest-bearing liabilities. In the context of the Fed’s interest rate hike, the company’s interest burden has been reduced, but the business level still faces many issues.


Related News