Thread regarding General Electric Co. layoffs

Citigroup hired to Sell GE Power Jenbacher and Waukesha for $2B!

Exclusive: GE exploring industrial gas engine business sale - sources

https://www.reuters.com/article/us-ge-divestiture-exclusive/exclusive-ge-exploring-industrial-gas-engine-business-sale-sources-idUSKCN1G100D

(Reuters) - General Electric Co (GE.N) is exploring a sale of its industrial gas engine business that could be worth as much as $2 billion, according to people familiar with the matter.

The move comes after Chief Executive Officer John Flannery, who took over as CEO last summer, indicated to analysts and investors for the first time last month that he was open to breaking up the company and said that a spinoff of any of its units, which include power, healthcare and aviation, was a possibility.

Divesting the industrial gas engine business, which includes the Jenbacher and Waukesha engines, would help streamline GE’s power division, whose profit plunged 45 percent last year as sales of power plants and services fell sharply.

GE has hired Citigroup Inc (C.N) to prepare a sale process for the industrial gas business, the sources said on Friday. The sources asked not to be identified because the matter is confidential.

A GE spokeswoman declined to comment, while a Citigroup spokesman did not immediately respond to a request for comment.

The unit for sale makes multi-ton gas turbines that generate on-site power to keep industrial plants running. Jenbacher and Waukesha engines cover the small to mid-sized segment of GE’s power business, ranging from 100 kilowatts to 10 megawatts.

Flannery said last November that GE would exit at least $20 billion in operations, as it tries to shore up its financial performance.

As part of this review, GE is exploring options for its transportation unit, which makes railway locomotives; its iconic lighting division, which makes bulbs for consumers; and its healthcare information technology business.

The company’s stock has lost half its value in the last 12 months and Flannery is under pressure from investors, including activist hedge fund Trian Fund Management LP which sits on its board of directors, to turn the business around.

GE disclosed last month that the U.S. Securities and Exchange Commission is investigating its accounting for part of its services backlog, and a set of actuarial calculations that caused GE to take a charge for long-term-care policies it underwrote a decade ago.

GE took a $6.2 billion after-tax charge on those policies in the fourth quarter and said it will set aside $15 billion more in reserves over the next seven years to cover potential claims on the policies.

Earlier this week, GE said it had reached a deal to sell parts of its overseas lighting business to a company controlled by former executive Joerg Bauer for an undisclosed amount.

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Post ID: @OP+RMzXAIH

12 replies (most recent on top)

I hope the stock analysts can see through this BS. Every year they sell off a part of a business that actually makes money. To offset parts of a business unit that does not make money. In the words of monte python , “it is a mear flesh wound” these idiots do not deserve to have a job.

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Post ID: @1hjl+RMzXAIH

Anschluss is just a bunch of dumb sausage sellers pretending they sell something you can eat without throwing up.

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Post ID: @1vzo+RMzXAIH

Good Jenbacher is on the block...took too much time....full or german and austrian supremacists who took the “NMH complex” to the next level, talk about cosseted, insular, paranoid and secretive, were never part of GEs open culture, never even took the initiative to adopt the parent companies culture, acquired in 1995, behaved like they were an independent entity, austrian bosses paranoid about job losses and outsourcing, tunnel vision, spoke in German in team meetings, even if non germans were present, made high tech expensive engines that needed high methane values to run on, whats the point of that....bye bye looks like anshluss all over again

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Post ID: @1kfa+RMzXAIH

Who cares what GE sells just get rid of everything and close this mess down.

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Post ID: @1eno+RMzXAIH

GE is probably looking to sell Jenbacher because it is one of the few businesses they haven't been able to figure out how to wreck... yet.

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Post ID: @1ayi+RMzXAIH

I found some cotton candy low on the furniture so to keep warm I’m going to strip on the walls and get high.

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Post ID: @1ris+RMzXAIH

Jenbacher is a brilliant business. It s all a company that wants to profit from top quality products and service can aspire for. A huge base, top engines, good margins, countless growth opportunities, specially from landfill and renewables. It is simply incredible GE wants to sell it. I work very close to this business and see how customers love the product. GE selling it is just insanity.

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Post ID: @1oxo+RMzXAIH

The interesting thing here you don’t sell an asset unless it is making money and you can get something for it. GE had done a fantastic of buying business’s robbing them their assets , then right sizing it and relocating factories in low cost countries selling hard assets and implementing their sourcing agreement which actually cost them money as opposed to their competitors. Meaning their stupid early payment discounts and crappy payment terms cost them money. After they trash the company, they have evaluated and low behold it is worth less than what they paid for it. What does that say for GE’s great leadership. Tell me they cannot integrate for sheet. Look at Alstom there is a great prime example of one hell of a sh-tty integration.

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Post ID: @kcd+RMzXAIH

The bankruptcy bells are ringing loudly.

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Post ID: @zwt+RMzXAIH

GE is past burning the furniture to keep warm at this point. We're stripping the cotton candy from inside the walls to stave off hunger, as this buy high, sell low move shows.

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Post ID: @qrv+RMzXAIH

GE paid over $3.5 from my math for both these companies back in the day. If the $2 billion is real the share holders are going to take a $1.5 billion dollar haircut. Great job GE leadership ! What a bunch of idiots at GE

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Post ID: @brk+RMzXAIH

No surprise, I guess this how GE leadership thinks they can meet 2018 earnings for Power. Sell it off and take a massive write down. I know GE closed a factory in Wisconsin and moved it to Ontario. It is brilliant factory. The only thing brilliant about it the money took from Canada to set it up. If this is all Flannery has in bag of tricks to make 2018 earnings good luck. Just more of the same from GE buy high and sell low.

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Post ID: @cjx+RMzXAIH

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