The Fall of GE
For decades, General Electric was the number one company to study in business school. As recently as 2014, GE ranked as the top global company for leadership. GE market value has plunged to only $67 billion. It was worth $260 billion just two years ago.
General Electrich as lost $500 billion from its peak value in 2000.
As of 2018, GE operates through the following segments: aviation, healthcare, power, renewable energy, digital, additive manufacturing, venture capital and finance, lighting, transportation, and oil and gas.
In 2018, General Electric ranked among the Fortune 500 as the 18th-largest firm in the U.S. by gross revenue. In 2011, GE ranked among the Fortune 20 as the 14th-most profitable company. As of 2012, the company was listed as the fourth-largest in the world among the Forbes Global 2000.
General Electric has fallen below the value of Seimens.
In mid-September, General Electric had problems in its critical power segment business. GE’s flagship gas turbine was suffering from an oxidation issue. A customer had to temporarily shut down two U.S. power plants.
GE has a lot of debt and has had large asset sales and two different breakup plans.
A confidant of CEO Culp said:
At the end of the process General Electric will look like a shell of what it used to be, but it will survive…As long as there is a debt pile that risks bring the company down, GE will keep on selling.
General Electric Still Number one in jet Engines
General Electric is the world’s biggest manufacturer of jet engines for the globe’s most common airplanes. It makes both its own engines and some of the most widely flown under its joint venture, CFM International, with France’s Safran. GE has about a 70 percent share of engines that power narrow-body jets, the most widely produced airplanes. GE’s aviation business competes with United Technologies unit Pratt & Whitney and Rolls Royce.
General Electric Aviation made 27.4 billion in revenue. About $20 billion was from commercial engines and related products and services and $3.84 billion was from military engines and related products and services.
Overall Market is down 17%
The overall stock market is down 17%. This is the third biggest drop since 1990.
Loss of General Electric Capital
The GE Capital segment nearly bankrupted General Electric during Great Recession of 2008. GE Capital did not have competitive advantage over other financial services companies.