- Changes to General Electric's (GE -1.4%) struggling power business have only just begun, as the company likely will pursue sales of individual power businesses, including steam, nuclear and power conversion, says RBC analyst Deane Dray.
- "We believe that GE's endgame is to shrink Power down to just the core gas turbine equipment and services platforms that have technology overlaps with Aviation," Dray writes.
- GE has said it would reorganize the power business into two divisions - a gas products and services unit and the remaining power units; the latter power portfolio consists of the steam, electric grid, power conversion and nuclear energy businesses which RBC estimates have respective annual revenues of $2B, $5B, $1B and $500M.
- "It is our position that all of the remaining businesses in Power portfolio have been deemed non-core and are likely being evaluated for future divestitures," Dray says.