Mike's Railroad Crossing Forum

BOSTON — GE executives may be getting out of the locomotive business.

A Wall Street Journal report published online Thursday cites unnamed sources saying the company is looking to "partner, spin off, or possibly sell" GE Transportation, which includes the storied locomotive business, as well as heavy-duty diesel engines, and mining equipment. All the products lines share similar components and operating environments.

A GE Transportation representative tells Trains News Wire that the company does not comment on speculation.

The rumors come in the same month that GE executives announced disappointing earnings in the third quarter while also saying they plan to slash $20 billion in businesses in the coming two years. GE also recently appointed a new CEO for GE Transportation, Rafael Santana, who takes over Nov. 1 after serving years in the company's GE Latin America unit.

GE Corporate headquarters is in Boston. GE Transportation has a headquarters in Chicago, but makes locomotives at shops near Erie, Pa., and Fort Worth, Texas. The Erie location has produced GE locomotive and parts since 1911.

See the original article online. (Note: currently behind a pay wall)

freebrickproductions wrote:From Trains:
http://trn.trains.com/news/news-wire/20 ... sale-rumor

BOSTON — GE executives may be getting out of the locomotive business.

A Wall Street Journal report published online Thursday cites unnamed sources saying the company is looking to "partner, spin off, or possibly sell" GE Transportation, which includes the storied locomotive business, as well as heavy-duty diesel engines, and mining equipment. All the products lines share similar components and operating environments.

A GE Transportation representative tells Trains News Wire that the company does not comment on speculation.

The rumors come in the same month that GE executives announced disappointing earnings in the third quarter while also saying they plan to slash $20 billion in businesses in the coming two years. GE also recently appointed a new CEO for GE Transportation, Rafael Santana, who takes over Nov. 1 after serving years in the company's GE Latin America unit.

GE Corporate headquarters is in Boston. GE Transportation has a headquarters in Chicago, but makes locomotives at shops near Erie, Pa., and Fort Worth, Texas. The Erie location has produced GE locomotive and parts since 1911.

See the original article online. (Note: currently behind a pay wall)

Currently a rumor, AFAIK, but would be sad if true.

NathanFromEngland wrote:

freebrickproductions wrote:From Trains:
http://trn.trains.com/news/news-wire/20 ... sale-rumor

BOSTON — GE executives may be getting out of the locomotive business.

A Wall Street Journal report published online Thursday cites unnamed sources saying the company is looking to "partner, spin off, or possibly sell" GE Transportation, which includes the storied locomotive business, as well as heavy-duty diesel engines, and mining equipment. All the products lines share similar components and operating environments.

A GE Transportation representative tells Trains News Wire that the company does not comment on speculation.

The rumors come in the same month that GE executives announced disappointing earnings in the third quarter while also saying they plan to slash $20 billion in businesses in the coming two years. GE also recently appointed a new CEO for GE Transportation, Rafael Santana, who takes over Nov. 1 after serving years in the company's GE Latin America unit.

GE Corporate headquarters is in Boston. GE Transportation has a headquarters in Chicago, but makes locomotives at shops near Erie, Pa., and Fort Worth, Texas. The Erie location has produced GE locomotive and parts since 1911.

See the original article online. (Note: currently behind a pay wall)

Currently a rumor, AFAIK, but would be sad if true.

So if GE sold the locomotive division, wouldn't the GE locomotives remain in service or be scrapped?

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.

Presenting his reshaping programme to investors, Flannery indicated that he was looking to ‘focus the portfolio’ around the power, aviation and healthcare markets, plus additive manufacturing, as he battles to turn around a business that has seen its stock market value fall by 35% this year, or more than US$100bn. Other changes include reducing the company board from 18 to 12 members and reducing dividend payments to around $1 from a target of $2 per share, the first reduction since 2009.

GE had indicated in October that it was exploring options to dispose of business activities valued at around US$20bn over the next two years, with GE Transportation thought to be on the list. The company had already sold off most of its consumer and finance operations. In his presentation, Flannery indicated that more than 10 business units were expected to go.

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%.

freebrickproductions wrote:Welp:
http://www.railwaygazette.com/news/busi ... iness.html

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.

Presenting his reshaping programme to investors, Flannery indicated that he was looking to ‘focus the portfolio’ around the power, aviation and healthcare markets, plus additive manufacturing, as he battles to turn around a business that has seen its stock market value fall by 35% this year, or more than US$100bn. Other changes include reducing the company board from 18 to 12 members and reducing dividend payments to around $1 from a target of $2 per share, the first reduction since 2009.

GE had indicated in October that it was exploring options to dispose of business activities valued at around US$20bn over the next two years, with GE Transportation thought to be on the list. The company had already sold off most of its consumer and finance operations. In his presentation, Flannery indicated that more than 10 business units were expected to go.

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%.