The company is dismantling itself by selling its good parts to pay debtholders leaving shareholders with the struggling segments.
The optimistic scenario as presented by the CEO is vague, and lacks a clear road-map.
The company has a history of misleading its investors while destroying value, and investors should be very skeptic towards the management.
Khen Elazar
But wait.... Are they not the Green company? BPA's dumped in the Huston River? Feel the sarcasm ....
It is kinda hard to sell some businesses especially with the environmental legacy at some of the sites.
I as well as every other GE employee expect some day to be diagnosed with Cancer due to my work environment especially with coworkers over the years at sites I have worked at having a high frequency of cancers.
According to the Environmental Protection Agency’s Toxic Release Inventory (TRI), for the electrical equipment industry, GE was the fifth largest producer of chemicals with four facilities in the top 100 generating 332,336 pounds in waste in 2007. In the miscellaneous manufacturing industry, GE’s GE Osmonics facility was the fourth highest producing facility of TRI production-related waste with 1,919,437 pounds. According to the University of Massachusetts Political Economy Research Institute (PERI), General Electric is the sixth most toxic company when considering the amount of population exposed to its pollution and its toxicity level from its plants.
According to the EPA, “From approximately 1947 to 1977, the General Electric Company (GE) discharged as much as 1.3 million pounds of polychlorinated biphenyls (PCBs) from its capacitor manufacturing plants” at two facilities on the Hudson River. The EPA says that “The primary health risk associated with the site is the accumulation of PCBs in the human body through eating contaminated fish.” The EPA has found that the cancer risk from eating fish from the Upper Hudson exceeds the EPA standard by 700 times.
On December 4, 2001, the EPA issued a “record of decision” calling for the dredging of 2.65 million cubic yards from the upper section of the Hudson River to remove approximately 150 thousand pounds of PCBs. According to the company’s website, “From 1990 to 2007 GE has spent over $1 billion in addressing PCB-related issues, with the majority of those expenses (82%) coming from just three sites” including the Hudson River. However, Riverkeeper and other non-for-profit organizations focused on the environment contend that GE has stymied the government’s efforts to clean up the river and enforce the dredging requirement.
In 2008, Alex Matthiessen, president of Riverkeeper, stated that CEO, Jeffery Immelt “continues to be, as is GE, very defensive about the Hudson River cleanup.”
GE's board should have read the Pied Piper
You can't sell the bad parts. Things should get better in the long run but they have sold as much as they can so now comes the rightsizing. Just hope they make the right decision on who gets let go. The right choice is a lot of the middle management and execs. to make a way forward for new employees over the next few years.
https://seekingalpha.com/article/4249683-general-electric-time-move