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GE plans to pull down LED lighting business

GE plans to pull down LED lighting business

By BizLED Bureau

Nov 20, 2017: General Electric plans to downsize its business by focusing just on a few key sectors. It will narrow its focus on the most profitable divisions such as avaiation, healthcare and energy, and will pull down transportation, industrial, and even its lighting businesses.

Its lighting business registered a consolidated revenue of US$ 33.5 billion in 3Q17, up 14%. EPS slid by 9% to US$ 0.29. The company’s declined drastically after the announcement was made. GE also slashed its quarterly dividend to 12 cents, which, it believes, will save it US$ 4 billion a year.

The sectors where GE plans to invest more actually saw growth in revenue. Revenue of renewable energy unit stood at US$ 2.9 billion with an increase of 5%, aviation’s witnessed a 8% rise to US$ 6.81 billion, and healthcare’s also a hike of 5% to US$ 4.72 billion. In comparison, revenue of lighting plummeted by 16% to merely US$ 483 million.

In 2018, GE plans to reset its segments, as company’s shares were down 38% in 2017 and trading at five-year lows. GE would cut off business units worth more than US$ 20 billion in the next two years. GE has reportedly cut an industrial cost of over US$ 1 billion in 2017 and plans over US$ 2 billion in cuts in 2018, which is two times the original target.

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