GE Reignites Break-Up Talk After $11 Billion Insurance, Tax Hit - Energy Watch News


GE Reignites Break-Up Talk After $11 Billion Insurance, Tax Hit

General Electric Co indicated it is looking closely at breaking itself up on Tuesday as the conglomerate announced more than $11 billion in charges from its long-term care insurance portfolio and new U.S. tax laws. Chief Executive John Flannery has previously raised the idea of selling pieces of the largest U.S. industrial company, but went slightly further on Tuesday, saying GE is “looking aggressively” at a spin-off or other ways to maximize the value of GE’s power, aviation and healthcare units. Flannery already is eliminating thousands of jobs and cutting $3.5 billion in costs as he tries to solve problems he inherited when he became CEO on Aug. 1, including falling sales of power turbines, a build-up of inventory and declining profit margins in some businesses. His turnaround effort is still likely to take a year or more to play out. 1/16 Reuters

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One comment on “GE Reignites Break-Up Talk After $11 Billion Insurance, Tax Hit

  1. Sad what LEDs have done to the US manufacturing industry.

    Long life with great CRI and low energy demand are great for Consumers, but if you are looking at your factory loading (production), it is very difficult to forecast – meaning it’s tough on employees and US Manufactures.

    Technology is changing rapidly, Manufacturers cannot carry much inventory. The entire distribution chain is in chaos!

    Even China is having trouble with this aspect and is outsourcing more and more to Third world counties.

    In two to three years, the industry will be unrecognizable. Distributors need to pay attention – they are not immune!

    Better have a backup plan or another trade in mind – just in case. Me, I am looking into financial advising opportunity.

    Good luck!

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