This Dec. 2, 2008 photo shows a General Electric (GE) logo on display at Western Appliance store in Mountain View, Calif. THE CANADIAN PRESS/AP, Paul Sakuma
July 20, 2012 - 8:03 AM
NEW YORK, N.Y. - General Electric says it's splitting up its energy infrastructure business into three parts.
The restructuring will affect operations that currently employ 100,000 people and generates about $50 billion in annual revenue.
The three new units will be GE Power and Water, headquartered in Schenectedy, N.Y., GE Oil and Gas, headquartered in Florence, Italy, and GE Energy Management, which will have its headquarters in Atlanta, Ga.
Earlier, GE announced its second-quarter net income fell 16 per cent in the because of losses in businesses it has divested and an increase in pension costs.
The conglomerate, with businesses ranging from appliances to financial services to wind and gas turbines, posted net income of $3.11 billion, or 29 cents per share, compared with $3.69 billion, or 35 cents per share, a year earlier.
Excluding pension costs and losses from discontinued businesses, GE earned 38 cents, a penny better than analysts were expecting.
Revenue rose 2 per cent to $36.5 billion, led by strong results in GE's industrial business. Analysts expected slightly higher revenue of $36.77 billion.
GE reaffirmed its outlook for double-digit growth in earnings per share, excluding any special items.
News from © The Associated Press, 2012