As an alternative viewpoint to one of GE's current problems, this Diesel & Gas Turbine magazine story about heavy Siemens cutbacks may be interesting:
https://dieselgasturbine.com/siemens-restructuring-power-gas/
ruderunnerisnt GE one of the companies that make up the DJIA? Meaning essentially that GE is the street.
The street is the Wall Street anylists earnings expectations for the companies they follow. Multiple anylists follow each stock and publish a earnings projection for the company each quarter. If a company's earning's are higher than the collective anylists projections - they 'beat the street'.
DJIA is made up of the stock price ebb and flow the companies that have been selected (and GE is one of them) to form that particular index measure. DJIA is made up of a very small number (30 I believed) of the total number (thousands) of stocks that are traded.
Never too old to have a happy childhood!
isnt GE one of the companies that make up the DJIA? Meaning essentially that GE is the street.
Modeling the Cleveland and Pittsburgh during the PennCentral era starting on the Cleveland lakefront and ending in Mingo junction
tree68 Ulrich Maybe not the ideal business to be in when your shareholders want steadily increasing dividends and don't have the patience for reinvesting for R&D. Unfortunately, this seems to be the business model for all too many investors these days. Just show me the money. If you don't show me the money, I'll take my business elsewhere.
Ulrich Maybe not the ideal business to be in when your shareholders want steadily increasing dividends and don't have the patience for reinvesting for R&D.
Unfortunately, this seems to be the business model for all too many investors these days. Just show me the money. If you don't show me the money, I'll take my business elsewhere.
I think it has gotten to the point with the 'institutional investor' - tell me how great you will be tomorrow (and back it up by beating the street every measurement period).
GE as a corporation, did not beat the street. In addition they can't make the right kind of snow job sales pitch.
UlrichMaybe not the ideal business to be in when your shareholders want steadily increasing dividends and don't have the patience for reinvesting for R&D.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
With only two major locomotive manufacturers left, I'm surprised one of them would want to get out of that business. After being number 2 for decades, they clawed their way to number 1 a couple of decades ago.. their customer base is doing very well to boot. Sounds to me like a good business to hang on to.
It doesn't really matter how many players are in the game, if you're not making any money, it's not fun. I presume they're getting out because they're not making money.
[/quote]
I don't know why they're getting out. GE as whole hasn't done well at all over the last year.. not sure how its locomotive division has done in comparison to the other divisions. Maybe not the ideal business to be in when your shareholders want steadily increasing dividends and don't have the patience for reinvesting for R&D.
blue streak 1 Bet its PTC support will go to H***
Bet its PTC support will go to H***
GE already sold it's PTC and rail signalling assetts to Alstom. Funny, as they've already had some issues with the transition.
This news was overshadowed by the bigger news of GE buying Alstom's power grid components, as part of the same deal. It was finalized in late 2015, leaving Alstom with all of GE's rail business except the Locomotive Unit.
Murphy Siding What's the difference between a sale and a spinoff?
What's the difference between a sale and a spinoff?
First, assume we are talking about some identifiable business unit.
If GE sells the unit, then the assets that are the unit transfer to the buyer and off GE's books. GE gets cash which it can use for whatever puropses the Board of Directors decides. GE will record a capital gain or capital loss on the sale. Shareholders can either hold or sell, just as they can on any given day.
In a spin-off the assets that are the unit transfer to a new corporate entity. That new entity is spun off to GE sharholders. After the spin-off shareholders have two stock certificates, one in GE, and some fraction of one in the New Company. The value of the two on the day of the transaction is equal to the one on the day before the transaction. Going forward each will trade separately. Shareholders can hold both, sell both, sell one and hold the other, sell one and buy the other.
Mac
GE cuts dividend
https://www.usatoday.com/story/money/markets/2017/11/13/general-electric-slashes-dividend-50-new-ceo-tries-turnaround-conglomerate/857659001/
With a spinoff the shareholders will own shares of GE Corp. which no longer owns GE transportation, plus they will receive separate shares in the former GE Transportation Corp, which will have been renamed most likely. The any value lost by GE Corp. from the spinoff of GE Transportation should be offset by the value of the shares received in GE Transportation.
zardoz GE has already jettisoned its gigantic real estate portfolio, its dishwasher and appliance business, and legendary media properties NBC and Universal Studios. More recently, it unloaded its water business and a unit that makes electrical equipment for utilities. Even the light bulb division is up for sale.... ....GE recently revealed plans to get rid of businesses worth at least $20 billion in the next year or two. One unit that could be on the chopping block is its struggling railroad business, which GE has owned for more than a century.... ....Unlike companies that make simple products, GE's jet engines, locomotives and power plant systems require expensive engineering, factories, equipment and manpower to create....Another business getting hit hard is the railroad unit. GE is planning to get out of the railroad business through a potential sale or spinoff, the Wall Street Journal reported last week. (All emphasis mine) http://money.cnn.com/2017/10/31/investing/ge-shrinking-cash-crunch-asset-sales
GE has already jettisoned its gigantic real estate portfolio, its dishwasher and appliance business, and legendary media properties NBC and Universal Studios. More recently, it unloaded its water business and a unit that makes electrical equipment for utilities. Even the light bulb division is up for sale....
....GE recently revealed plans to get rid of businesses worth at least $20 billion in the next year or two. One unit that could be on the chopping block is its struggling railroad business, which GE has owned for more than a century....
....Unlike companies that make simple products, GE's jet engines, locomotives and power plant systems require expensive engineering, factories, equipment and manpower to create....Another business getting hit hard is the railroad unit. GE is planning to get out of the railroad business through a potential sale or spinoff, the Wall Street Journal reported last week. (All emphasis mine)
http://money.cnn.com/2017/10/31/investing/ge-shrinking-cash-crunch-asset-sales
Thanks to Chris / CopCarSS for my avatar.
Ulrich With only two major locomotive manufacturers left, I'm surprised one of them would want to get out of that business. After being number 2 for decades, they clawed their way to number 1 a couple of decades ago.. their customer base is doing very well to boot. Sounds to me like a good business to hang on to.
Although LEDs are taking over always considered GE light bulbs to be superior to any other brands. What happens to product support for locos when that department is spun off ?
Not so great for GE Transportation employees either.
Good point.
Norm
rdamon jeffhergert Ulrich With only two major locomotive manufacturers left, I'm surprised one of them would want to get out of that business. After being number 2 for decades, they clawed their way to number 1 a couple of decades ago.. their customer base is doing very well to boot. Sounds to me like a good business to hang on to. Especially since (IMO) they currently have the better product. Jeff Or a prime time to spin it off since it will be at peak value.
jeffhergert Ulrich With only two major locomotive manufacturers left, I'm surprised one of them would want to get out of that business. After being number 2 for decades, they clawed their way to number 1 a couple of decades ago.. their customer base is doing very well to boot. Sounds to me like a good business to hang on to. Especially since (IMO) they currently have the better product. Jeff
Especially since (IMO) they currently have the better product.
Jeff
Or a prime time to spin it off since it will be at peak value.
Great for GE stockholders. Maybe not so great for those that use the product, depending on who buys the business.
BaltACDWhen you get to the top of your field, isn't the next step to retire? Add Quote to your Post
Balt,
You have a valid point, back in the forties and fifties it was thought that what was good for General Motors was good for the nation.Long run, thanks to mismanagement proven that mantra wrong. I've watched GM execs come and go with little change in the direction of a corporation. Harrison, OTOH, wants massive changes right now.
It was a different era and the large corporations had the upper hand. GM, Ford, Chrysler, and many other corporations helped us win WWII through their efforts at productionof military vehicles .In the forties, my dad worked on the DUKW development, the six by six trucks among others and I recall as a child visiting GM's proving grounds at Milford while testing of military vehicles was still paramount. Secrey at that point did not seem to be of great concern given the opposition had no way of observing activities there. Today, GM's proving ground in Milford is fenced and there are lots of Pines to obscure any view of operations there.
I am certain tree 68 can confirm my observation but OTOH he may be too young to recall some of those details. Laughingly said, I dont think Larry was around in the forties. He's younger than I.
BaltACD Norm48327 Ulrich With only two major locomotive manufacturers left, I'm surprised one of them would want to get out of that business. After being number 2 for decades, they clawed their way to number 1 a couple of decades ago.. their customer base is doing very well to boot. Sounds to me like a good business to hang on to. As is their production of turbofan engines for airliners. IMO, they would be unwise to dump either. Eh? Sorry, I couldn't resist. When you get to the top of your field, isn't the next step to retire?
Norm48327 Ulrich With only two major locomotive manufacturers left, I'm surprised one of them would want to get out of that business. After being number 2 for decades, they clawed their way to number 1 a couple of decades ago.. their customer base is doing very well to boot. Sounds to me like a good business to hang on to. As is their production of turbofan engines for airliners. IMO, they would be unwise to dump either. Eh? Sorry, I couldn't resist.
As is their production of turbofan engines for airliners. IMO, they would be unwise to dump either. Eh?
Sorry, I couldn't resist.
When you get to the top of your field, isn't the next step to retire?
(Note: to Norm48327) For quite a while GE has operated a 'base' at Winfied, Ks. [formerly called Strother Field]; a place where they would 'replace' jet engines in commercial aircraft [based on an identified maintenance cycle(?)] At one point they did overhaul engines there as well. Now the engines are just trucked in from another GE facility, for replacement. (?)
seppburgh2 Some one help me out please. So after the 20B fire sale, what will GE make? Or is the plan to become a holding company with a big wad of cash and nothing to make? I don't understand.
Some one help me out please. So after the 20B fire sale, what will GE make? Or is the plan to become a holding company with a big wad of cash and nothing to make? I don't understand.
They can use the cash from the sales to buy other assets and reposition the company onto a higher growth path with the newer companies it buys.
There was a LOT of potential in the assets that GE held though. It just would not invest. See how IRBT stock is doing well? That could have been the GE appliance division had they invested in automated or robotic technology......instead of just repackaging a 40 year old appliance in a new skin.
With their locomotive division they could invest money to make the engines burn even more efficiently saving fuel and emissions, they could make the cabs more safe, they could standardize on parts, etc. The problem is they only invest in spurts then there is a long drought of investment. They need a long term business strategy, IMO.
Happily dumped their stock in 2003, you could start to see the handwriting on the wall back then because even though they were flying high financially they had no real plan or strategy for the future. It was like they were letting out a sigh of relief that they had finally grown so big they no longer needed to worry about planning a future strategy. Sadly, it does not work that way in a global economy.
Firelock76 Even the light bulb division is up for sale? That humming sound you hear coming from West Orange NJ is Thomas Edison spinning in his grave at about 1,500 RPM.
Even the light bulb division is up for sale?
That humming sound you hear coming from West Orange NJ is Thomas Edison spinning in his grave at about 1,500 RPM.
Might be worth a trip this year if this going to be thier swan song.
I can remember many drive by with our family looking at the many tremdous decorations in Cleveland area. Might be worth a trip this year if this going to be thier swan song.
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