The conglomerate General Electric is still considering a breakup of the 126-year-old company. In an earnings call with investors, executives said the company’s current business is profitable, but dragged down by past ventures.
GE’s core businesses—industry, aviation, and health care—posted solid gains. But those were erased by a $1.5 billion loss from subprime mortgages. That division is currently being investigated by the Justice Department for violations from before the 2008 financial crisis.
Some analysts have speculated that the sum-parts of GE could be worth 25 percent more than the current behemoth. CEO John Flannery says he’s considering it.
“We have to think through, and I have to think through, what is the environment and conditions that will make these companies flourish not just in 2018. But 5 years ahead, 10 years ahead, 20 years ahead.”
GE’s stock has been falling for over a year, but bounced up with today’s report. Excluding the one-time mortgage loss, GE has earned $369 million so far this year.
