GE to split up energy business
The restructuring impacts operations that generate about $50 billion in annual revenue.
NEW YORK—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.
GE’s second-quarter net income fell 16 per cent on 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, compared with $3.69 billion a year earlier.
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.