GE looks to sell or spin off Chicago-based transportation division

Wednesday, 15 November 2017, 06:35:47 AM. GE said it plans to sell or spin off its Chicago-based transportation division within two years in a bid to streamline the largest U.S. industrial company
is looking to shed its Chicago-based transportation division within two years as part of a broader streamlining of the slumping industrial giant. The announcement, delivered by new CEO at an investor conference Monday, would end the longtime ownership of one GE’s core assets. The transportation division has been a leader in building passenger and freight locomotives for more than a century. The transportation division, which also supplies the mining, marine and other industries, moved its headquarters from Erie, Pa., to Chicago in 2012 and has about 10,000 employees worldwide. Flannery, a 30-year company veteran who formerly ran GE Healthcare, said the road ahead for transportation was less promising than other businesses owned by GE. “We foresee a protracted slowdown,” Flannery said. “We think it’s going to be an extended slow period in North America.” Boston-based GE, which as of last year had about 2,000 employees in the Chicago area, is looking to part ways with $20 billion in assets and focus on better-performing segments on the heels of disappointing third-quarter earnings and a sharp decline in the company’s valuation this year. GE also is looking to divest its lighting division, the idea that brought the company, founded 125 years ago by inventor Thomas Edison, to life. Flannery said the segments would be “monetized” to provide maximum return to shareholders. “We are exploring the options that we have with these assets,” Flannery said. “That may be a sale; that may be...Read more
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