GE plans to exit appliance business

NEW HAVEN, Conn. (AP) — General Electric Co. said Friday that it plans to sell or spin off its iconic appliance business that for a century sold refrigerators, air conditioners and ovens for millions of homes.

The industrial conglomerate said in a statement the move is part of an ongoing plan to exit “slower growth and more volatile businesses.”

GE’s 101-year-old appliance business, headquartered in Louisville, Ky., has been hurt by the housing slump and economic slowdown in the U.S. The appliance division had revenues of $7 billion last year and employs about 13,000 people worldwide.

“GE Appliances has a very strong brand ... and for more than 100 years has been one of the icons associated with GE in the United States,” GE Chairman and CEO Jeff Immelt said. “However, its remains primarily a U.S. business, meaning its fortunes are tied to the rise and fall of a single market.

The company is planning a strategic review that could result in an outright sale of GE Appliances, a strategic partnership or a spin-off to shareholders.

“This review is consistent with the strategy we have been executing to transform our portfolio for long-term growth,” Immelt said. “Since 2003 we have exited slower growth and more volatile businesses, generating $52 billion in gross proceeds from dispositions. These proceeds have been reinvested into a transformed portfolio of faster growth, higher margin businesses, stock buybacks and other restructuring activities.”