Yes they did. GE sold a portion of GE Transportation to Wabtec and spun-off a portion to shareholders.

GE announced today that it has completed the spinoff and merger of its Transportation business with Wabtec Corporation. GE received approximately $2.9 billion in cash as well as shares of Wabtec common stock and Wabtec nonvoting convertible preferred stock that together represent an approximately 24.9 percent ownership interest in Wabtec. GE shareholders own about 24.3 percent of Wabtec on a fully diluted basis.

The combined company, which is expected to have revenues of more than $8 billion in 2019, has approximately 27,000 employees in 50 countries. It is based in Wilmerding, Pennsylvania.

Engines of any sort, steam, diesel or electric are just fascinating pieces of equipment.

mark s posted:

Anyone know how profitable the locomotive business was for GE?

One would think that only GE would know that.  Just like General Motors never releases information pertaining to individual divisions' "profitability".

That said, one would think that if the locomotive business, i.e. the Transportation Division, was pretty profitable, then GE would not have sold it.

One would think that.  The heck of it is (now, this is said as one who has not followed GE very closely, but observed from the sidelines) much of GE's financial difficulties come from the GE's financial side, not the industrial side. Much of which undergirded Jack Welch's "heroic" performance.  Turned out, it was all a house of cards.

From what analysts have said about GE over the years, the transportation division, which included things like locomotives and Jet engines among other things, did pretty well, GE's decision to sell off that branch wasn't it wasn't profitable, it is a combination of things, they needed the cash, and they had decided to focus more on the financial side of things. Just as an FYI, there is a report out that I saw on CNBC this morning, where a guy who helped break the Madoff mess among other things, has issued a report accusing GE of massive financial fraud, to the tune of like 39 billion dollars, that among other things they hid massive losses in the long term care business they got into..in that light, it may have been GE trying to get out from behind a big hole that led them to selling assets. 

The person who dies with the best toys dies a happy person

mark s posted:

One would think that.  The heck of it is (now, this is said as one who has not followed GE very closely, but observed from the sidelines) much of GE's financial difficulties come from the GE's financial side, not the industrial side. Much of which undergirded Jack Welch's "heroic" performance.  Turned out, it was all a house of cards.

That's  what happened to Westinghouse Electric!  How ironic is it that George Westinghouse's other company was the white knight for GE, which was founded by Thomas Edison and Westinghouse was his chief rival.  

Bill (retired Westinghouse employee)

Part of the rebuild business may be the advent of Tier 4 emission standards.   New, new much more expensive, and may be more difficult to maintain, and operate, with higher emission standards.   Fix the old, almost seems like farm heritage.  IMO, Mike CT.   I believe the feds have a time limit on rebuilds, I could be wrong and often.   

Add Reply

Likes (0)
Post
OGR Publishing, Inc., 1310 Eastside Centre Ct, Suite 6, Mountain Home, AR 72653
330-757-3020

www.ogaugerr.com
×
×
×
×
×