CASTLE HAYNE — After a disappointing third quarter, GE announced it will make a range of cutbacks to restore financial stability. However, it appears that the company’s GE Hitachi nuclear power department and the outpost of GE’s aviation department, which share a facility in Castle Hayne just north of Wilmington, will escape deep cuts.
In an update to investors from recently-appointed CEO John Flannery, it was announced that GE would cut investor dividends in half, from 24 cents a share to 12 cents. Flannery also promised to sell $20 billion in assets.
While it remains unclear exactly which assets Flannery and GE plan to divest, the investor updates suggests opting out of GE’s stake in the Baker Hughes, a petroleum exploration company, in part due to “commodity-based volatility.” The update also identifies a lack of market demand for GE’s transportation program, including its locomotive manufacturing operation.
The update also indicates GE plans to winnow its focus down to three main areas: health care, power and aviation — the later two have significant operations in the Wilmington area. The update identifies several problems with GE’s power wing, including a “more competitive” and “overcapacity” market, as well as “poor planning and operational execution.” However, the evaluation concludes that “opportunities exist” for the department.
The update describes GE’s aviation department as strong throughout.
Jonathon Mark Allen, spokesman for GE Hitachi, said he could not comment beyond Flannery’s Monday update. However, he did reiterate that GE would focus on healthcare, power and aviation.
GE Investor Update Presentation, Nov. 13, 2017 by Ben Schachtman on Scribd