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$4 B coming This should help MUL General Electric Co.
plans to raise $4 billion by selling two of its smallest industrial
units and promised to cut another $1 billion in expenses, as the
conglomerate tries to boost its profit margins by shrinking its
operations. In a presentation Wednesday for financial analysts, GE said it plans to sell its Industrial Solutions business, which supplies equipment to the electrical distribution and grid industries, as well as its GE Water business. The two units combined account for $5 billion in annual revenue. Chief Executive Jeff Immelt said the company is still on track to hit a key investor target: earnings of $2 per share in 2018. To get there, the company will add new sources of revenue, including through a proposed tie-up of its oil and gas business with Baker Hughes Inc., and cut back on costs. For next year, Mr. Immelt predicted the company will generate operating profits of about $19 billion and around $135 billion in revenue. |
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