GE denied the sale of lighting business will build the industrial Internet industry

According to the Economic Observer reported, "we have been in a volatile economic environment to reshape the GE company, to participate in the competition in the best state, GE CEO Immelt pointed out that, when we build the next industrial era, focusing on customer is more important than ever. In addition to going to finance, GE's industrial sector is also adjusted, including the company's basic industries.

As everyone knows, GE originated from the great inventor Thomas Edison, he founded the electric company in 1878, and two years later renamed Edison Ge Corp (GE), 1892, the old Morgan Morgan Consortium for the new Ge Corp investment partnership. 2013 earnings report, GE appliances and lighting business accounted for only 6% of total sales of the company, the contribution to the total profit of $2%.

Last year, GE's home appliance business to $3 billion 300 million sale to the Swedish home appliance manufacturer Electrolux, out of the field of home appliances. For this transaction, Immelt said, GE's strategy is to become the world's best infrastructure and technology companies, which will bring $more than 1 billion in pre tax profits for GE.

Although our home appliance business has more than 100 years of history, but it is not our core business, our competition is not helpful, Immelt said.

Market sources said, GE may also be the lighting business under the banner of the sale, the outside world that enter these years because of lack of lighting business to LED, with PHILPS, OSRAM competition gradually eclipsed. However, GE president and CEO of Greater China, said "there is no segment of small tassel to hear the news".

However, in Duan Xiaoying, the company will vigorously expand the business sector in the Chinese market this year, and did not mention the lighting business, and the new energy business is one of the main direction.

Right now, GE is looking forward to July 8th, the European Commission -- the company is to force Alston power equipment business acquisition of $16 billion 900 million, to the completion of the acquisition procedures in this year, the integration of its renewable energy sector, the establishment of renewable energy sector in france. The acquisition of GE repelled rival SIEMENS's bid.

In GE's existing industrial sector, as well as about 25% of the proportion of crude oil and natural gas business, the company had a $14 billion investment in oil and gas companies. By the end of last year, the company predicted that as crude oil prices fell, in 2015, its crude oil and natural gas business revenue and profits may decline by 5%. Some analysts said the decline could be even greater.

April 17th, GE announced a quarterly earnings report, affected by oil prices and exchange rate fluctuations, crude oil and natural gas revenues fell 8% GE industrial sector.

Immelt said in a letter to shareholders, "enterprise and the leadership team will experience a variety of cyclical fluctuations, sometimes, in order to Qiuwen, some enterprises will be the status quo or to try to curb aggressive impulses, but we will not".

GE positive interaction between industry and finance, starting in the competitive advantage of the manufacturing sector, which also helped boost the development of the GE group into the fast lane.

As the industrial civilization of the last century, the peak, GE's business model is referenced for the completion of production after expanding the scale of the Chinese enterprises, these companies are Chinese hope as a reserve strategy in the financial industry, has become a new profit growth, including Huaneng, Haier, PetroChina, Baosteel and other well-known enterprises. Some scholars also believe that the development of enterprises in the process of investment and financing channels, but also need to diversify the capital, industry and financial integration seems to be the inevitable trend of China's future industrial development.

GE overwhelmed by this change also sounded the alarm for Chinese companies. "It may be a way to rethink the way in which the industry combines financial capital," Li Guowei said.

Next battlefield

Immelt stressed that the combination of industrial advantages and important financial services capabilities, GE is still unique, but, GE is an industrial enterprise, which is clearly. GE financial group must be able to enhance our industrial competitiveness, rather than reduce it. The size of the GE financial group will ultimately depend on its competitiveness and returns, as well as regulatory impact on the entire company. "Where to succeed, where is our market," said Immelt, GE will create value for investors through the leadership of the field of industrial internet. In 2016, the company hopes to achieve 17% profit margins and returns.

It is reported that GE proposed industrial Internet, Internet technology to optimize the existing industrial manufacturing processes, improve efficiency and reduce costs. Which will be applied to the Internet technology, big data analysis, cloud computing and mobile technology, etc..

GE said the company has 12 thousand global industrial Internet services, and to build a technical team of $1 billion. In the Chinese market, GE will set up software and analysis centers, and continue to increase investment in this area. "If the industrial Internet like consumer Internet has been fully applied today that, by 2030, will likely bring the cumulative GDP increment of $3 trillion for the China economy, GE pointed out, they believe that the Internet can help the application of industrial Chinese aviation, electric power, railway, medical, oil and natural gas and other major industries to achieve productivity gains of 1% in the next 15 years, will have the potential to make these industries cost savings of about $24 billion.

GE, for example, last year, AirAsia Flight through the use of Efficiency services, so as to optimize the sequence of flight flow management and route design, is expected to save fuel costs $10 million