General Electric to divest two industrial units, cut $1 bn in cost

General Electric Co (GE) yesterday said that it plans to raise $4 billion by divesting two of its smallest industrial units and cut another $1 billion in costs, as part of its plan to focus on its core businesses.

The plan to sell two of its smallest industrial units comes after the Connecticut-based multinational conglomerate earlier announced the sale of its water business.

In a presentation yesterday to financial analysts, GE said it plans to sell its Industrial Solutions business, which supplies equipment to the electrical-distribution, and grid industries.

Both businesses have combined annual revenue of $5 billion.

GE will also focus on cutting costs by closing some facilities, which may lead to job losses.

GE had announced in April last year that it would sell off most of its financial arm GE Capital but retain the financing verticals that relate directly to its industrial businesses in order focus on its core industrial business.

Since then, GE Capital has signed agreements for approximately $177 billion and has closed approximately $156 billion of those deals.

It recently acquired Alstom SA's power business for $13.6 billion and later split its renewable energy business and power unit. It also merged its oil and gas business with Baker Hughes and create a company with annual revenues of $24 billion.