By Joe Cornell, Contributor, Forbes Magazine; November 1, 2017
On October 26, 2017, media reports indicated that General Electric Company (NYSE: GE, $20.16, Market Capitalization: $175 billion), a global industrial conglomerate, is planning to spin-off its transportation business, while some reports suggest that the company might spin-off its healthcare unit as well. According to reports, GE is also considering other alternatives including engaging in a partnership or sale of the transportation business. Post spin-off, transportation business which accounted for 4% of GE’s industrial revenue in 2016, will manufacture freight and passenger diesel-electric locomotives and provide services including advisory services, parts and integrated software solutions & data analytics, including overhaul, repair and upgrade services. In 2016, Locomotives and services accounted for 86% of the segment’s revenue. On the other hand, GE will continue to manufacture products and services from its portfolio of power generation, oil and gas production equipment, aviation and healthcare and energy businesses. The company hosts a wide array of products and services that range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products.
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