General Electric Co. (GE) is reportedly looking to exit the railroad business, the Wall Street Journal reported, citing unnamed sources familiar with the matter.
The decision to quit its GE Transportation railroad business, which is one of GE's oldest, is part of new CEO John Flannery's extensive turnaround plans geared toward streamlining the company. Flannery previously said he wants to divest more than $20 billion worth of assets over the next two years.
GE is looking to partner, spin off or possibly sell the unit, the sources told the Journal. The business primarily produces diesel-powered locomotives and equipment for railroad use. A sale could carry a major tax bill, one source said, because GE has owned the business for a century.
Since the start of the year, GE Transportation's revenue has slid 8% while profits have dipped 15%. The unit provided $4.7 billion of GE's total revenue of $123.7 billion in 2016.
GE stock dipped 0.35% to $21.42 near midday Thursday.
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