GE to 'switch off' appliance unit

Check GE's share price

US conglomerate General Electric (GE) may stop making household appliances after more than a century in the business.

It blames a sharp slowdown in US consumer spending and the housing slump for weak sales of appliances.

GE-branded fridges, ovens and air conditioners have made the firm a household name, but the unit generated just 4% of total revenues in 2007.

A review of the business could mean it is sold or spun off.

The US economic slowdown has hit GE hard.

The group makes more money from jet engines than dishwashers and the appliances unit made revenues of just $7bn (£4.52bn) last year, a fraction of its total 2007 sales of $172.7bn. Sales are expected to fall by up to 12% this year.

"For more than 100 years (appliances) has been one of the icons associated with GE in the United States"
Jeffrey Immelt, GE chief executive

Meanwhile, GE cannot tap into fast growing emerging markets because its appliances division generates most of its revenue in the US.

The firm, the world's second largest by market capitalisation, said it was launching a strategic review of the unit which could result in "an outright sale, a strategic partnership or a spin-off to shareholders".

"For more than 100 years (appliances) has been one of the icons associated with GE in the United States," said chief executive Jeffrey Immelt, announcing the review.

Analysts said the business was worth about $7bn.

GE's empire spans commercial and consumer financial services, jet engines, water treatment plants and medical equipment. It also owns media company NBC Universal.

RELATED INTERNET LINKS
General Electric
The BBC is not responsible for the content of external internet sites