CEO: GE Won’t Rule Out a GE Capital Spinoff

by Christopher Freeburn | March 20, 2013 11:26 am

CEO: GE Won’t Rule Out a GE Capital Spinoff

Immelt 300x199 CEO: GE Wont Rule Out a GE Capital Spinoff[1]At an industry conference in Sydney, Australia, General Electric‘s (NYSE:GE[2]) CEO said that the company could eventually spin-off GE Capital[3].

Jeffrey Immelt said that the company was looking at ways to streamline its operations. He noted that while no plans currently exist to spin-off GE Capital, the move could happen under the right circumstances, Dow Jones noted.

Immelt pointed out that GE had exited the media business[4], selling its stake in NBCUniversal to Comcast (NASDAQ:CMCSA[5]). He said that GE was constantly evaluating the capital market alternatives for the company.

GE has recently moved to divest itself of divisions not directly related to its core manufacturing and energy businesses[6]. The financial services sector continues to show depressed results due to lingering economic uncertainty in the U.S. and Europe.

Last year, GE Capital resumed paying regular dividends to its corporate parent[7]. It had suspended dividend payments in 2008 in the midst of the financial crisis.

Shares of GE rose modestly in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/09/Immelt.jpg
  2. GE: http://studio-5.financialcontent.com/investplace/quote?Symbol=GE
  3. that the company could eventually spin-off GE Capital: http://www.foxbusiness.com/news/2013/03/20/general-electric-may-spin-off-ge-capital/
  4. exited the media business: http://investorplace.com/2013/02/comcast-picks-of-the-rest-of-nbc-for-16-7b/
  5. CMCSA: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMCSA
  6. not directly related to its core manufacturing and energy businesses: http://investorplace.com/247trader/ges-corporate-restructuring-a-major-bullish-theme-for-2013/
  7. resumed paying regular dividends to its corporate parent: http://investorplace.com/2012/05/ge-capital-resumes-ge-dividend-payments/

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