GE GE Capital dismantled; Plans $ 90B for investorsGeneral Electric (GE), which now sells the majority of its GE Capital
Bank business in the latest attempt to simplify the conglomerate and
focus on the most powerful segments.
GE began the announcement on Friday with the sale of its real estate assets - a hodgepodge of factories, trade credits and apartment complexes - $ 26.5 billion. Wells Fargo Bank and private equity firm Blackstone bought the bulk of that 23 billion US dollars, the company said.
Opening the door for the return of $ 90000000000 to shareholders through dividends and share buybacks to 2018 - - While as the right move for the long term, there is shown a short-term pain.
GE confirmed he held a $ 16000000000 after-tax charge against earnings in the first quarter of this year.
The stock rose 8.9% to $ 27.81 per share, but the message of the money GE plans to return to the investors. GE said the CEO and already a new repurchase program of up to $ 50 billion approved.
The conglomerate, at 259 billion US dollars, has been slowly selling off its media, financial systems and devices in recent years and doubling down on their industrial manufacturing companies in an effort to simplify.
On Friday announced Chairman and CEO Jeff Immelt the next big step in this strategic shift to the output of the majority of GE Capital - a legacy of the former GE CEO Jack Welch and sometimes controversial.
"Creating a simpler GE position us to deliver superior results related to our core competencies," Immelt said in a letter to shareholders.
In addition to real estate, GE will also sell most of its commercial lending and leasing segment customers all platforms, including all US and international bank assets.
The new GE focus on energy production, including deep-water oil drilling equipment; Electricity and water technologies and its aviation business, which makes military and commercial aircraft engines, the company said.
GE will also retain its health care business, including data management.
GE will retain some financing options, such as its aircraft leasing operations and lending to energy and healthcare customers. The company currently provides funding more than 3,000 GE Healthcare clients, including investment financing.GE, founded by Thomas Alva Edison in 1876, the restructuring has been for years. In 2011, GE sold its remaining interest in news and entertainment company NBCUniversal. And last year, turned GE Capital from its private label credit card company financial Synchrony in an IPO, which raised $ 2.9 billion.
"GE Capital has a solid company and a great team," Immelt said. "But the business model for big wholesale financial companies financed has changed, making it more difficult to achieve acceptable returns for the future."
Immelt made the financial crisis and said, ". Financial markets have changed in a generation"
Under the plan, Immelt said GE expects more than 90% of its revenues are generated by the industrial enterprises in 2018 in 2014, compared with 58%.
These companies offer higher yields, he said.
GE Capital, meanwhile, in 2001, make up 10% of the Company's revenues in 2018, up from 46%.
GE began the announcement on Friday with the sale of its real estate assets - a hodgepodge of factories, trade credits and apartment complexes - $ 26.5 billion. Wells Fargo Bank and private equity firm Blackstone bought the bulk of that 23 billion US dollars, the company said.
Opening the door for the return of $ 90000000000 to shareholders through dividends and share buybacks to 2018 - - While as the right move for the long term, there is shown a short-term pain.
GE confirmed he held a $ 16000000000 after-tax charge against earnings in the first quarter of this year.
The stock rose 8.9% to $ 27.81 per share, but the message of the money GE plans to return to the investors. GE said the CEO and already a new repurchase program of up to $ 50 billion approved.
The conglomerate, at 259 billion US dollars, has been slowly selling off its media, financial systems and devices in recent years and doubling down on their industrial manufacturing companies in an effort to simplify.
On Friday announced Chairman and CEO Jeff Immelt the next big step in this strategic shift to the output of the majority of GE Capital - a legacy of the former GE CEO Jack Welch and sometimes controversial.
"Creating a simpler GE position us to deliver superior results related to our core competencies," Immelt said in a letter to shareholders.
In addition to real estate, GE will also sell most of its commercial lending and leasing segment customers all platforms, including all US and international bank assets.
The new GE focus on energy production, including deep-water oil drilling equipment; Electricity and water technologies and its aviation business, which makes military and commercial aircraft engines, the company said.
GE will also retain its health care business, including data management.
GE will retain some financing options, such as its aircraft leasing operations and lending to energy and healthcare customers. The company currently provides funding more than 3,000 GE Healthcare clients, including investment financing.GE, founded by Thomas Alva Edison in 1876, the restructuring has been for years. In 2011, GE sold its remaining interest in news and entertainment company NBCUniversal. And last year, turned GE Capital from its private label credit card company financial Synchrony in an IPO, which raised $ 2.9 billion.
"GE Capital has a solid company and a great team," Immelt said. "But the business model for big wholesale financial companies financed has changed, making it more difficult to achieve acceptable returns for the future."
Immelt made the financial crisis and said, ". Financial markets have changed in a generation"
Under the plan, Immelt said GE expects more than 90% of its revenues are generated by the industrial enterprises in 2018 in 2014, compared with 58%.
These companies offer higher yields, he said.
GE Capital, meanwhile, in 2001, make up 10% of the Company's revenues in 2018, up from 46%.