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GE may spin off its washers arm
15.05.08
General Electric may sell off its large-appliances division, which makes fridges and washing machines, after more than 100 years in the industry.
The company has hired Goldman Sachs to look at options including a sale, spin-off or joint venture, the Wall Street Journal says.
The firm disposed of its small-appliances division in 1984. GE's products are suffering from the slump in demand for new homes in the US. Profits fell in the last quarter, and the appliances division has failed to meet a growth target of 10% a year.
GE no longer breaks out the results for the unit, which contributed $7.2 billion (£3.7 billion) or 4.1% of sales last year.
Trade buyers for GE Appliances are limited after recent industry consolidation. Haier of China may step in after being spurned in the 2006 sale of Hoover maker Maytag, which fell to Whirlpool.
Dutch rival Royal Philips Electronics, Europe's largest consumer-electronics maker, has said it is looking for acquisitions to build its appliances division.
It raised €680 million (£538.9 million) earlier this year when it sold a stake in its liquid-crystal display venture with LG.
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