Why is GE being dissasembled
Close
Login to Your Account
Page 1 of 3 123 LastLast
Results 1 to 20 of 55
  1. #1
    Join Date
    Nov 2014
    Country
    UNITED STATES
    State/Province
    Texas
    Posts
    674
    Post Thanks / Like
    Likes (Given)
    272
    Likes (Received)
    184

    Default Why is GE being dissasembled

    GE is hurting. and that Is odd. I cant understand why they got rid of their VERY profitable financial division. It seems like they are being systematically taken apart. Can anyone explain why?

    Im all for the little guy. But you need these big companies that can do R&D that is outside the reach of most people.


    Can anyone here explain what is going on over there and why this feels fishy? I mean, now they are talking about selling the aviation leasing department. WHICH IS ALSO PROFITABLE. what the heck?


    How many of your pensions have GE shares?

  2. #2
    Join Date
    Mar 2011
    Location
    Geneva Illinois USA
    Posts
    4,419
    Post Thanks / Like
    Likes (Given)
    1709
    Likes (Received)
    1611

    Default

    I can't answer that specific question, but it is no secret that just because a sector is profitable, if it lags other sectors its out. Case in point was the appliance business. ROI was much less than say, aircraft engines. GE's goal is to dominate a business sector. Finance is not one in today's world that is easily dominated.

    Tom

  3. #3
    Join Date
    Nov 2014
    Country
    UNITED STATES
    State/Province
    Texas
    Posts
    674
    Post Thanks / Like
    Likes (Given)
    272
    Likes (Received)
    184

    Default

    Quote Originally Posted by TDegenhart View Post
    I can't answer that specific question, but it is no secret that just because a sector is profitable, if it lags other sectors its out. Case in point was the appliance business. ROI was much less than say, aircraft engines. GE's goal is to dominate a business sector. Finance is not one in today's world that is easily dominated.

    Tom
    Their finance division was hugely profitable. (and at one time deemed "to big to fail")I do get what your saying, but I've never before seen a company that said "lets sell our most profitable asset" without having a very good reason to do it. I think pension payments has something to do with it honestly. GE carries 134 billion in debt. they arent to far away with a $20 share price. maybe Im just a conspiracy theorist, But I dont get it.

  4. #4
    Join Date
    Oct 2014
    Country
    UNITED STATES
    State/Province
    Maryland
    Posts
    2,383
    Post Thanks / Like
    Likes (Given)
    1213
    Likes (Received)
    1394

    Default

    Quote Originally Posted by Motorsports-X View Post
    GE is hurting. and that Is odd. I cant understand why they got rid of their VERY profitable financial division. It seems like they are being systematically taken apart. Can anyone explain why?

    Im all for the little guy. But you need these big companies that can do R&D that is outside the reach of most people.


    Can anyone here explain what is going on over there and why this feels fishy? I mean, now they are talking about selling the aviation leasing department. WHICH IS ALSO PROFITABLE. what the heck?


    How many of your pensions have GE shares?
    GE always had the philosophy if they cannot be number 1 or number 2 in a market segment they did not want to participate. It just maybe more profitable for them to sell of a division falling behind and invest more in a segment they dominate.


    dee
    ;-D

  5. Likes Mcgyver, TDegenhart liked this post
  6. #5
    Join Date
    Jul 2009
    Location
    Peoria, IL
    Posts
    10,469
    Post Thanks / Like
    Likes (Given)
    32
    Likes (Received)
    7771

    Default

    Have you ever been in a GE manufacturing facility? It's amazing they made it this long...

  7. #6
    Join Date
    Jun 2006
    Location
    Near Seattle
    Posts
    4,253
    Post Thanks / Like
    Likes (Given)
    2201
    Likes (Received)
    997

    Default

    part of the finance thing was that being "too big to fail" imposed many regulations on the rest of the company, so onerous that they unwound finance to avoid being "too big to fail"

    as for other units, recall that an entity like GE is largely driven by increases in profit over time - that is what drives share price - which can yield some things that look odd from the perspective of an individual.

  8. #7
    Join Date
    Mar 2016
    Country
    UNITED STATES
    State/Province
    California
    Posts
    202
    Post Thanks / Like
    Likes (Given)
    39
    Likes (Received)
    62

    Default

    Quote Originally Posted by Motorsports-X View Post
    But you need these big companies that can do R&D that is outside the reach of most people.

    Hello Motosports-x
    Your above statement is very true. Large companies like GE and Westinghouse were major contributors to the working class. Obviously times have changed, our government no longer provides R&D funding like it use to. Instead, we get tax cuts that yield no long term benefit to people like you and me.

    GE appears to be focusing on their core historical manufacturing base. Unfortunately, wall street no longer has much of an appetite for manufacturing.

    otrlt

  9. #8
    Join Date
    Aug 2006
    Location
    Kansas
    Posts
    2,162
    Post Thanks / Like
    Likes (Given)
    12508
    Likes (Received)
    762

    Default

    Is the locomotive mfg. division another thing they're selling off?

    I run them a lot, and I like their locos...

    Must not be any money left in there, either.

  10. #9
    Join Date
    Jan 2002
    Location
    West Coast, USA
    Posts
    7,232
    Post Thanks / Like
    Likes (Given)
    308
    Likes (Received)
    3893

    Default

    As noted earlier, GE felt that in the wake of 2008, being a too-big-to-fail finance company wasn't in its best interests. In the run up to 2008, nearly half the nations "profits" were in finance and much of that gaming our system IMO. Logically you'd think that agriculture, manufacturing, distribution, services, retail etc. would be the bulk of our economy -- not someone making money financing those industries.

    The company aims to remake itself as a sophisticated controls/manufacturing industry -- remember all those ads about software geeks joining GE?

    It sees Siemens as its main competitor in this. So, GE has been moving away from marginally profitable manufacturing (e.g. appliances) and focusing more on jet engines, turbines, etc. with an increasingly significant computer controls and service aspect.

    IBM did something like this with its marginally profitable PC hardware businesses, selling them off and concentrating more at the high end and on high tech services. So far I suppose you could say the company is doing just OK with this strategy. I suspect the same with GE.

    In a way it's a shame that a company can't survive on Wall St. simply by making a billion dollars worth of something like appliances or PCs to the highest standard of quality while earning a decent profit. If that billion in revenue stays the same year to year, despite a profit and satisfied customers, the company is toast. I suspect the new CEO will now be responding more to Wall St. than customers . . .?

  11. Likes Motorsports-X, JoeE. liked this post
  12. #10
    Join Date
    Mar 2011
    Location
    Geneva Illinois USA
    Posts
    4,419
    Post Thanks / Like
    Likes (Given)
    1709
    Likes (Received)
    1611

    Default

    Since I left GE years ago and sold my shares, I haven't followed the company. The top management changed hands a couple of months ago, the new CEO is doing what all new CEO's do and that is to make a name for himself. Do some reading on the net and apparently Jeff Immelt lead a life of leisure that the new CEO Flannery wants to undo. Sell corporate jets, cut head count, sell, sell, sell..... Read some of the articles Reuters has written.

    Tom

  13. Likes digger doug, JoeE. liked this post
  14. #11
    Join Date
    Oct 2005
    Location
    erie,pa
    Posts
    7,998
    Post Thanks / Like
    Likes (Given)
    14745
    Likes (Received)
    3773

    Default

    Quote Originally Posted by JoeE. View Post
    Is the locomotive mfg. division another thing they're selling off?

    I run them a lot, and I like their locos...

    Must not be any money left in there, either.
    I dunno, however years ago, the word on the street was that the railroads
    would not let either EMD nor GE fail, by always tossing the loosing bidder,
    some small order.
    The thought was by having (2) U.S. manufactureres, there would be competition.

    Daewoo Heavy Industries makes an very similar freight Loco, so some railroads might just start importing them.

  15. #12
    Join Date
    Mar 2009
    Location
    peterborough,ontario
    Posts
    3
    Post Thanks / Like
    Likes (Given)
    0
    Likes (Received)
    0

    Default GE Gone

    Here in Peterborough Ge had about 6000 workers in the late 1970 to 1975 period. I started in 1973 and seen dept. after dept. close. Now Ge here is closing for good in Sept. of 2018! No more manufacturing ever.

  16. #13
    Join Date
    Nov 2014
    Country
    UNITED STATES
    State/Province
    Texas
    Posts
    674
    Post Thanks / Like
    Likes (Given)
    272
    Likes (Received)
    184

    Default

    Mean while.. A plastic competitor in china bought 100 arburg injection machines in the last 18 months.



    We are all screwed.

  17. #14
    Join Date
    Jul 2009
    Location
    Peoria, IL
    Posts
    10,469
    Post Thanks / Like
    Likes (Given)
    32
    Likes (Received)
    7771

    Default

    Quote Originally Posted by tos grinder View Post
    Here in Peterborough Ge had about 6000 workers in the late 1970 to 1975 period. I started in 1973 and seen dept. after dept. close.
    I've done work in a few GE facilities and heard the same thing. It's not hard to see why though.

    Needed to remove a hydraulic pump from a machine. Here were the steps required:

    1) Call a mechanic to remove the covers and pull the pump out of the machine.

    2) Call a plumber to remove the hoses.

    3) Call an electrician to remove the wires. The controls technician I was working with is not allowed to do that.

    4) Take pump to tool crib. Wait about an hour for someone to find a new one.

    5) Call plumber, electrician, mechanic, and controls guy to install new pump. Wait as required.

    6) Push button to start machine.


    I could have done that job in 20 minutes. It took 6 hours to install, and another 2 hours to make it actually work. An entire shift to swap out a 1/4hp hydraulic pump.

    The unions have "protected" themselves right out of a job...

  18. #15
    Join Date
    Jan 2006
    Country
    UNITED STATES
    State/Province
    Connecticut
    Posts
    1,428
    Post Thanks / Like
    Likes (Given)
    492
    Likes (Received)
    628

    Default

    A big reason is because Immelt ran the company into the ground and Flannery is taking drastic steps to try and turn the company around.

    If Flannery cuts the dividend on the 13th., the stock is gonna sink even more.

    Regardless of whether the dividend is cut or not, be prepared for more division sell offs.

  19. Likes digger doug liked this post
  20. #16
    Join Date
    Feb 2013
    Location
    midlands,UK
    Posts
    2,952
    Post Thanks / Like
    Likes (Given)
    1474
    Likes (Received)
    1443

    Default

    Quote Originally Posted by ewlsey View Post
    I've done work in a few GE facilities and heard the same thing. It's not hard to see why though.

    Needed to remove a hydraulic pump from a machine. Here were the steps required:

    1) Call a mechanic to remove the covers and pull the pump out of the machine.

    2) Call a plumber to remove the hoses.

    3) Call an electrician to remove the wires. The controls technician I was working with is not allowed to do that.

    4) Take pump to tool crib. Wait about an hour for someone to find a new one.

    5) Call plumber, electrician, mechanic, and controls guy to install new pump. Wait as required.

    6) Push button to start machine.


    I could have done that job in 20 minutes. It took 6 hours to install, and another 2 hours to make it actually work. An entire shift to swap out a 1/4hp hydraulic pump.

    The unions have "protected" themselves right out of a job...
    You missed out all the risk assessments and paperwork at every stage,at least that's what it's like over here.

  21. Likes Motorsports-X liked this post
  22. #17
    Join Date
    Jul 2009
    Location
    Peoria, IL
    Posts
    10,469
    Post Thanks / Like
    Likes (Given)
    32
    Likes (Received)
    7771

    Default

    Quote Originally Posted by sable View Post
    You missed out all the risk assessments and paperwork at every stage,at least that's what it's like over here.
    No, I left out the part where I have to sit through 3 hours of mandatory contractor safety training (that's only offered at 7:00am on Mondays). And the part where I have to be escorted at all times. And the part where no one on my contact list showed up for work to tell me where to go, so I sat there for 4 hours waiting for directions.

  23. Likes sable, Ziggy2 liked this post
  24. #18
    Join Date
    Mar 2008
    Location
    Vienna Austria
    Posts
    223
    Post Thanks / Like
    Likes (Given)
    64
    Likes (Received)
    44

    Default

    In 20 years GE could well be the last man standing in commercial aviation engines. The massive R&D investment in CMCs (ceramic matrix composites) over the last 30 years is finally bearing fruit, and will allow then to keep cranking compression ratios and turbine inlet temps. They have far fewer fan blade issues as the competition on the large turbofans due to their long experience in composite blades.

    Hard to see the P&W1000 series rescueing P&W as a first tier manufacturer, and RR is also doing so well at present, having traded profitablity for market share for the last two decades.

    Mark
    Last edited by rotarySMP; 11-08-2017 at 03:04 PM.

  25. #19
    Join Date
    Jan 2002
    Location
    Upstate NY -In the Flats next to the corn fields
    Posts
    8,677
    Post Thanks / Like
    Likes (Given)
    1296
    Likes (Received)
    2116

    Default

    Quote Originally Posted by ewlsey View Post
    No, I left out the part where I have to sit through 3 hours of mandatory contractor safety training (that's only offered at 7:00am on Mondays). And the part where I have to be escorted at all times. And the part where no one on my contact list showed up for work to tell me where to go, so I sat there for 4 hours waiting for directions.
    As long as you're charging by the hour.........WHO CARES.

  26. #20
    Join Date
    Jul 2009
    Location
    Peoria, IL
    Posts
    10,469
    Post Thanks / Like
    Likes (Given)
    32
    Likes (Received)
    7771

    Default

    Quote Originally Posted by dkmc View Post
    As long as you're charging by the hour.........WHO CARES.
    Anyone with two brain cells to rub together can see that what I described is the antithesis of efficiency and profitability.


Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •