Thursday, 17 May 2018

Investopedia/TK McDonald: Top 5 Companies Owned By GE (GE)

Top 5 Companies Owned By GE (GE)
By TK McDonald | Updated April 20, 2018 — 9:16 AM EDT
Add To Watchlist

General Electric Co
View Watchlist

The last few years have certainly not been kind to GE, which came in as the worst performing stock in the Dow Jones in 2017. Reporting a Q4 2017 loss of $10 billion, the company has seen better days. While the conglomerate figures out what to do with a sinking power division, they are also, as of January 24, 2018, under SEC investigation for taking a $6.2 billion after-tax charge to their insurance division. Other than power and insurance, the company is growing in key areas like Aviation and Renewable Energy. After hiring new CEO John Flannery in September of 2017, it remains to be seen which businesses will rise to the forefront as GE figures out its next move. On April 20, 2018, GE reported better-than-expected Q1 2018 earnings, total revenue rising 7 percent to $28.66 billion with a net income of 4 cents per share. This strong performance mainly stems from double-digit growths from its aviation, transportation and healthcare divisions.
GE Power

The former bedrock of this industrial giant, GE Power is a wholly owned subsidiary of General Electric and remains the largest business division, although it is currently on a sharp downward trajectory. This is especially true after the sale of GE Capital and the refocusing on core business segments. This division focuses on producing systems to implement power generation from wind, oil, gas and water to produce electric power. Interestingly, energy storage solutions were spun off from GE Power in October 2015 into a $1 billion startup called Current, focusing on building better batteries. For the year of 2017, GE reported revenue of $35.9 billion and profit of $2.7 billion. This was well below GE's expectations, with the segment's profits down 45% from the previous year and a whopping 88% from Q4 2016.
GE Aviation

One of the few business segments that has been consistently growing, GE aviation provides jets, turboprop engines, and designs software used by major aviation corporations. The segment has plans to have 60,000 jet engines connected to the internet by 2020, which they claim will save fuel and create fewer delays at airports. The segment's revenue grew 4% in calender 2017 to $27.3 billion, with profits of $6.6 billion.
GE Healthcare

The third largest segment, GE's Healthcare division grew steadily to revenue of $19.1 billion in 2017, with profits of $3.4 billion. In addition to being a healthcare provider, GE also creates medical technology and software. The company also has an "exclusive" health cloud platform for its users. In April 2018, GE announced the sale of certain software assets of GE Healthcare's Value-Based Care Division to private equity firm Veritas Capital for $1.05 billion in cash.
GE Oil & Gas

GE Energy was spun off into three subsidiaries, including the aforementioned GE Power & Water, GE Oil & Gas and GE Energy Connections. GE Oil & Gas, as the fourth-largest revenue generator for GE, focuses on providing smart and efficient solutions to the oil and gas industry. GE is betting that better efficiency in production is what most producers want and it seems to be right, with revenue in calendar 2017 totaling $18.2 billion, up 34% from the previous year.
GE Renewable Energy

Also known as GE Energy Connections, this energy management division focuses on distribution, conversion, automation and optimization of energy sources. By focusing on an area that promotes sustainability and increased efficiency, there is plenty of room to grow. With $10.28 billion in revenues in calender 2017, this is the GE company to watch in coming years. The company creates environmentally friendly power solutions with wind, hydro, and solar tech.
What Does It Mean?

General Electric is not the same company it was just two years ago. It's still a massive conglomerate and is one of the top 10 largest companies in the world, but with renewed focus on its roots in industrial machines and green energy is keeping the company afloat.
Compare Popular Online Brokers
Advertiser Disclosure
Related Articles

    The Rise and Fall of GE
    The General Electric Co., once considered a bellwether of blue-chip stocks, has seen its value rapidly plummet in the last 18 months.
    Financial Advisor
    What's Behind GE's $32 Billion Deal With Wells Fargo
    GE is a 123-year-old blue chip mainstay, with some radical plans for the future--as evidenced by Wells Fargo's $32 billion purchase of several of GE's finance-related businesses.
    Financial Advisor
    Why Is GE Selling Some of Its Subsidiaries?
    Learn why GE is selling off a substantial amount so it does not have to comply with increased government regulation in the wake of the 2008 financial crisis.
    The Biggest Risks of Investing in General Electric Stock
    Read about the biggest risks facing General Electric Company, an international conglomerate that is undergoing unprecedented restructuring.
    General Electric Stock Could Rise More Than 30%
    GE stock has underperformed for nearly 10 years but may be poised to rise soon.
    General Electric Unveils Flywheel UPS Systems (GE)
    General Electric Co (GE) has announced a new series of flywheel uninterruptible power supply (UPS) systems.
    GE Tops Expectations as Revenue Soars 15% (GE)
    General Electric second-quarter earnings rise, its share price falls in pre-market trading
    Lights Out! GE Considering Sale of Consumer Lighting Business
    Company thinking of pulling the plug on lightbulbs - its oldest business
    GE's Stock Investors Should Brace for More Pain
    General Electric stock has underwhelmed in 2017 and will probably continue to lag as we head into the new year.
    GE May Be Dropped From Dow: Deutsche Bank
    With a plummet in GE's share price, the company is now an outlier within the Dow 30 index.


    What recognized CEO earned the moniker "Neutron Jack"?
    The story of Jack Welch, former CEO of GE, has become the stuff of management legend. Read Answer >>
    How much of the United States' energy comes from oil and gas?
    Examine the energy sources for the United States, and learn how much of the total U.S. energy supply comes from the oil and ... Read Answer >>
    How Did Kidder Peabody's Joseph Jett Lose $350M?
    The 1980s were a rough decade for Kidder, Peabody & Co. thanks to bond trader Joseph Jett. Read Answer >>
    What are the main benchmarks that track the oil & gas drilling sector?
    Read about several different types of benchmarks that investors can use to track the overall performance of the oil and gas ... Read Answer >>


    The Dummies' Guide To The Iran Nuclear Deal
    What You Should Know About Net Neutrality
    A Stock Sell-Off Vocabulary Guide
    Understanding Interest Rates, Inflation And Bonds
    Everything You Need To Know About Earnings

    Work With Investopedia
    About Us Advertise With Us Contact Us Careers

© 2018, Investopedia, LLC. Feedback All Rights Reserved Terms Of Use Privacy Policy

No comments: