WASHINGTON, Oct. 27 (Xinhua) -- General Electric (GE) is looking for options vis-a-vis its century-old train business amid the down cycle of the rail industry in the United States, according to a Wall Street Journal report published Friday.
"The Boston-based company is exploring options for the GE transportation division, according to people familiar with the matter," the report said. "The company, the people said, is looking to partner, spin off or possibly sell the operations, which primarily produce diesel-powered locomotives and railroad equipment."
Slack demand is the major reason behind the move. In the first nine months of 2017, the unit's revenue slipped 8 percent and profits fell 15 percent.
GE is one of the world's biggest makers of freight locomotives, while rivals like Siemens, Alstom and Bombardier mainly compete in the passenger market.
GE's diesel locomotives are primarily assembled in Fort Worth, Texas, and western Pennsylvania. The division had about 10,000 employees at the start of the year, 2,000 fewer than in the previous year.
GE shares are down about 32 percent this year, erasing more than 93 billion U.S. dollars in market value even as the stock market has surged to record highs.
