GE's Energy Shake-Up

Updated

The following video is part of our "Motley Fool Conversations" series, in which Isaac Pino and Austin Smith discuss topics around the investing world.

Today, Isaac and Austin discuss General Electric's realignment in the energy business, which created GE Power and Water, GE Oil and Gas, and GE Energy Management. Each division will have a CEO reporting directly to GE's CEO Jeff Immelt, and former GE Energy executive John Krenicki will be exiting the company after 29 years. Isaac views the split as a natural progression of GE Energy's tremendous growth in the past half-decade and its incredible promise going forward. What was formerly a natural gas turbine business that competed primarily with Siemens has grown into a diverse mix of portfolio businesses. Overall, GE Energy seems to be following in the footsteps of the parent company as a whole, diversifying while at the same time remaining focused on energy infrastructure growth.

For GE, the recent financial crisis struck a blow, but management took advantage of the market's dip to make strategic bets in energy. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events unfold during the year. To get started, click here now.

The article GE's Energy Shake-Up originally appeared on Fool.com.

Austin Smith and Isaac Pino own shares of General Electric. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend First Solar. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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