General Electric Locomotive Division ?

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General Electric Locomotive Division ?
Posted by samfp1943 on Tuesday, November 14, 2017 7:26 AM

Seems to be a big subject among the Business 'Talking Heads'  this morning. Corporate stock value is down something like 30% over the last year... The 'new' core focus seems to be on Aviation, Power [Electrical?] and it seems no thoughts that the Locomotive Division will be part of the 'new' future for General Electric.

 So the big question here is 'Where does the Locomotive Division wind up?'

   Anyone care to speculate?   New Owner?   Break it up and sell it off in pieces?

    Will anyone want to buy their locomotives?

 

 

Sam

 

 


 

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Posted by Ulrich on Tuesday, November 14, 2017 9:47 AM

Looks as if The new CEO is following Jack Welsh's playbook.. i.e. if you can't be number 1 or 2 in the marketplace then get out of it..oh wait a minute... GE locomotive div. IS number 1. Hmmm. Number 1 isn't making any money and number 2 is? 

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Posted by Norm48327 on Tuesday, November 14, 2017 9:55 AM

Ulrich,

They are on top of the game at the moment. Does it make sense to divulge the corporation of a profit making division?

I sense a CEO looking for a bigger bonus.

Norm


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Posted by tree68 on Tuesday, November 14, 2017 1:36 PM

It's interesting that locomotives have been a part of the GE portfolio for years.  ALCO used GE parts very heavily until GE decided to start building their own locomotives.

Too bad ALCO couldn't find a way to stay in as #3 - maybe they'd take over...

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Posted by kgbw49 on Tuesday, November 14, 2017 6:25 PM

GE still sells a lot of locomotives all over the globe, and in countries without highway systems similar to the US Interstate System, railroads will continue to be heavily utilized and quite possibly expanded.

In addition, even in the US, there is a lot of very old locomotive stock still on the rails, and if the current administration would do something with the rules to perhaps say that older stock such as SD40s can be replaced with Tier 3 to get the incremental-but-signifiant gain in emissions cleanliness along with the superior fuel economy of Tier 3 compared to Tier 4, there could be a large market for many years.

Sitting on an enormous pile of cash, perhaps this is another industry that a certain Oracle might understand and consider utilizing a "relatively" small portion of that pile to acquire.

Who knows? Stranger things have happened.

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Posted by beaulieu on Tuesday, November 14, 2017 9:43 PM

One of the business analysts interviewed concerning GE said that looking at the numbers GE has minimal or zero Free Cash Flow from Operations. That is very bad. It could be time to stick a fork in General Electric as a going concern.

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Posted by samfp1943 on Wednesday, November 15, 2017 6:08 PM

beaulieu

One of the business analysts interviewed concerning GE said that looking at the numbers GE has minimal or zero Free Cash Flow from Operations. That is very bad. It could be time to stick a fork in General Electric as a going concern.

 

mHere is acurrent piece in the Railway Gazettte of 13 Nov. 2017: " GE looks to sell rail business" [ No author listed]

Linked @ http://www.railwaygazette.com/news/business/single-view/view/ge-looks-to-sell-rail-business.html

FTA:''...USA: General Electric expects to dispose of its Transportation business unit over the next two years, along with its Industrial Solutions and Lighting activities, new CEO John Flannery confirmed on November 13.."

FTA:...Insisting that GE Transportation was a ‘global market leader’ with a premier offering and strong digital business that was ‘close to key customers’, the group said the recent downturn in the North American locomotive market had been partly offset by international growth and a strong backlog in the services business. ‘Adapting to realities’ had included base cost reductions through ‘rigorous supply chain management’ and a focus on capital investment to optimise working capital requirements.

Nevertheless, there were ‘continued market challenges’ in Q4 and the business would still be under pressure in 2018-19. Predicting a ‘soft’ market for 2018, GE expects Transportation revenues to be down by 15% and profits by 25%..."

Will be intersting to watch, as GE courts a buyer; or they carve it up like the Thanksgiving Turkey....Bang Head

 

 

Sam

 

 


 

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Posted by samfp1943 on Friday, November 17, 2017 9:29 AM

And Then There is This:  Apparently, around the dates of 11/10 to 11/14  GE's new CEO. John Flannary bought something like $2.66 Million worth of GE Stock (approx 103,498 shares(?) which boosts his personal investment to about $15.5 M (@$18.27)for his 401k.

see link@ dayton/news/2017/08/14/with-stock-buy-general-electric-ceo-puts-millions.htmlhttps://www.bizjournals.com/

 Do not know what former CEO Jeff Imelt's position in stock valuation is/was(?) but it is being reported that GE's stock price has fallen over 42% in recent times.

see link @ https://www.reuters.com/article/us-ge-stocks-ceo/ge-shares-rise-after-ceo-flannery-buys-stock-idUSKBN1DH1VY

 It is pretty fascinating to myself, to watch this 'corporate scenario' play out (from the side lines Whistling  )    As a bystander and a cynical skeptic. One would have to wonder how much is 'manipulation', and downright opportunism?   Of course, Jeffery Imelt is most likely coming out of this whole episode looking like a victim of "Snidley Whiplash', and John Flannary, like Santa Claus, minus his 'trainset', under the Christmas tree.. 

   Whistling   BUT It ain't over 'til its over.Bang Head

Sam

 

 


 

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Posted by Firelock76 on Saturday, November 18, 2017 2:15 PM

Well, I think it's very short-sighted and foolish of GE to unload the locomotive division especially if it's making money, even if it's not making as much money as someone would like.  After all, it's Number One in locomotive production.  Maybe sales are slow right now but that won't last forever.

Who knows just what kind of corporate politics and machinations are going on behind the scenes?  Maybe we'll never know, or we'll just have to wait for a corporate history/expose' to come out in ten years time. 

Anyway, I don't work for or own any part of GE, so I can't say I'm going to lose any sleep over this one.

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Posted by BaltACD on Saturday, November 18, 2017 2:30 PM

ALL businesses are cyclical - no business turns record profits period over period forever.  Any one that thinks differently is a fool in their own mind.

There are ebbs and flows in the locomotive market just like there are in grain prices and any and every form of human commerce.

If GE senior management can't deal with it - THEY NEED TO LEAVE as they aren't business material.

         

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Posted by Paul of Covington on Saturday, November 18, 2017 6:26 PM

Firelock76
Who knows just what kind of corporate politics and machinations are going on behind the scenes? Maybe we'll never know, or we'll just have to wait for a corporate history/expose' to come out in ten years time.

   As you say, who knows.   I don't know whether someone sees a way to make a quick buck or has a long range plan, but it's been my impression that a lot of decisions are made by just following the latest fad that some "guru" comes up with.   A little over half a century ago, as a new-hire, I heard and read our company bragging that they were diversified, the logic being that the different divisions would carry us through varying demands in the different fields.   A few years later, they started selling off most of the divisions to concentrate on our "core business".   You may have guessed that I don't generally have a high opinion of top level management.

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Posted by BaltACD on Saturday, November 18, 2017 6:52 PM

Paul of Covington
 
Firelock76
Who knows just what kind of corporate politics and machinations are going on behind the scenes? Maybe we'll never know, or we'll just have to wait for a corporate history/expose' to come out in ten years time. 

   As you say, who knows.   I don't know whether someone sees a way to make a quick buck or has a long range plan, but it's been my impression that a lot of decisions are made by just following the latest fad that some "guru" comes up with.   A little over half a century ago, as a new-hire, I heard and read our company bragging that they were diversified, the logic being that the different divisions would carry us through varying demands in the different fields.   A few years later, they started selling off most of the divisions to concentrate on our "core business".   You may have guessed that I don't generally have a high opinion of top level management.

Diversified - what a crock of BS.  In retrospect it appears to have been a way to spend profits without dividends to the stockholders or raises to employees below Board Room level.  And something or somebody to scapegoat when things turned South.

         

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Posted by Firelock76 on Saturday, November 18, 2017 7:06 PM

Well, I won't name names or organizations, but the history of the job I hold now ran something like this.

I started with a local outfit that was owned by a holding company.  We were sold to a larger holding company that then decided to become an operating company.

No problem for a few years, then a new CEO came in who was self-driven to increase profitability, not that we weren't making money to begin with.  Departments and divisions were closed, employees were let go, functions were centralized, all in the name of efficiency.  And all this time we were constantly bombarded with the usual "rah-rah company" stuff.

Long story short, the whole point was to make us an attractive item for a potential purchaser, who eventually showed up and bought the company.  Our CEO took his "Golden Parachute" and hit the road.  He was supposed to be a great guy.  In my opinion he was a bad man.  The current crowd running us seem to be just a bunch of foul-ups that couldn't hit the ground with their hats, as Paul said chasing the latest fads esposed by the latest "gurus" and charlatans.  At the time of the puchase we were told our buyer wanted us because they admired our efficiency.  "Wow," I thought to my self, "They must really be fouled up if they think we're good!"

How right I was.

I share Paul of Covington's opinion of top-level management.  One more year and I'm gone, baby.  And I won't look back.  And I'm not the only veteran employee saying that, we're all fed up to the point endurance is no longer a virtue.

I keep thinking of Casey Stengal's remark, "Can't anybody play this here game?"

Seems like it applies to business just as well as it applied to the '62 Mets.

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