Credit: Shutterstock photoGeneral Electric ( GE ) has a deal to sell a part of its overseas lighting business for an undisclosed amount to a company controlled by one of its former executives.
[ibd-display-video id=3151711 width=50 float=left autostart=true] The GE deal includes its lighting businesses in Europe, the Middle East, Africa and Turkey, along with its global automotive lighting businesses. The buyer is Joerg Bauer, the former president of GE Hungary, The Wall Street Journal reported late Thursday. A GE spokeswoman confirmed the businesses will operate as the Tungsram Group and use the GE brand for a transition period.
GE's iconic lighting division traces back to the earliest days of the company, which Thomas Edison helped to found some 125 years ago. For now, GE retains the rest of its lighting business, including its North America operations and commercial LED lighting. The company is in the process of selling those too, reports said.
Shares of GE climbed 0.7% to 14.96 on the stock market today but the Dow component's stock has halved in value over the past year and sits near its lowest level in more than six years. Philips ( PHG ), which also makes lighting products, edged up 0.3%, and LED maker Cree ( CREE ) added 0.6%.
IBD'S TAKE:Don't try to guess the market's next move. Read The Big Picture every day to understand the action of the major averages and leading stocks.
The sale of parts of GE Lighting comes as the industrial conglomerate, hit by challenges, plans a series of asset sales and divestitures.
The lighting division contributed to its poor results last year - GE posted an 11% drop in industrial profits to $13.87 billion and a 1% drop in total revenue to $122.09 billion. The company has embarked on a broad restructuring plan to shed $20 billion worth of assets and narrow its focus on three core divisions: power, aviation and health care.
New CEO John Flannery took over in August, promising to turn the company around. Since then, GE has slashed its dividend payout in half and cut its 2018 guidance. Most recently, the company revealed an SEC probe tied to its insurance business .
YOU MIGHT BE INTERESTED IN:
If General Electric Breaks Up, Should You Break Up With GE's Stock?
2018 Stock Market Forecasts: Read The Predictions For Top Stocks And Industries
How To Invest In The Stock Market: Start With A Simple Routine
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
