Over the past several years, General Electric (NYSE:GE) has divested assets at a steady pace in an effort to simplify the company, exit less desirable business lines, and shore up its ailing balance sheet.
The GE Power unit has been a key target of this restructuring effort, after the segment’s revenue and earnings plummeted a few years ago. GE has made substantial progress toward streamlining its power business over the past few years, driving improved performance. However, the company may be close to announcing another big move: selling its nuclear turbines business.
Reshaping the power unit
General Electric’s power business generated a $5.1 billion operating profit on $36.8 billion of revenue in 2016, adjusted for a subsequent change in how GE defined its business segments. Just two years later, revenue had plunged to $27.3 billion and the unit recorded an $808 million loss.