CNN:GE lighting business is very difficult to get rid of

Recently, the U.S. media CNN of Ge (General Electric) to get rid of the plight of the lighting business for a brief analysis. The following is a translation that has been cut:

General Electric (GeneralElectric) in the past 126 years has been linked with the bulb. Now, General Electric is difficult to get rid of it.

General Electric cash strapped, since announced plans to sell the lighting business and focused on such as jet engines and nuclear magnetic resonance imaging equipment business, has been nearly a year.

At present, General Electric (GE) lighting business has yet to find buyers. The company's chief executive John Flannery told analysts last month on a conference call, GE is "active discussions with potential buyers".

But the agreement has not been reached. This week, GE refused to provide the sale of the lighting business progress to the "CNNMoney" column.

The sale of GE lighting business prospects difficult to highlight its lighting business.

Last year, GE lighting sales fell 59% to $2 billion (about 12 billion 780 million yuan) below. Although GE lighting has been defined, but today it is the smallest of the Department, accounting for the annual income of 122 billion dollars less than 2%. GE decided to focus on three key areas: health care, electricity and air.

For GE, the lighting business recession is not the case. This is a common problem in the industry, because of its low price and decades of LED lights popular, limited alternative demand.

Another problem is that, unlike other GE products, lighting is now very mediocre. A light bulb and a bulb has almost no obvious distinction.

Cowen analyst Gautam Khanna said: "it is becoming more and more commercialized, it is not a technology oriented business."

Previously, GE is considering the sale of its 100 year history of the railway business.

The bill limits in the United States, the Ge trading becomes complex. For example, the railway transaction is tax-free, but the deal is very complex, as long as a few years, and involve cash, equities and derivatives. The sale of the lighting business will take a very long time.

Another question: if the sale of lighting and similar railway business, Ge may still be troubled by the high debt.

An insider told CNNMoney that, even if the sale of general electric railway business, health responsibility of American pension and retiree is not transferred to the new company, not enough to alleviate their debt worries.

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