GE Confirmed Possibility It Will Give Up Appliance Business

New Haven, CT (AHN) - General Electric Co. has confirmed the possibility of selling its 101-year-old appliances division, whose products were once a staple inside American homes.

Chief Executive Jeffrey Immelt announced that the GE was "reviewing strategic options" for the unit. The options, he told the New York Times, included a partnership or joint venture, a spin-off to shareholders or a sale.

"GE appliances has a very strong brand, great distribution, a talented leadership team and for more than 100 years, has been one of the icons associated with GE in the United States," Immelt said, adding, "However, it remains primarily a U.S. business, meaning its fortunes are tied to the rise and fall of a single market. We want to make this good business great again by finding the right strategic solution -- a solution that will give appliances the global reach and investment required to compete more effectively."

The Times noted that Immelt has been under increasing pressure to streamline the conglomerate's businesses by pruning the slower-growing branches.

In March, GE posted an unexpected 5.9 percent drop in quarterly earnings and forecast a measly 5 percent earnings growth for all of 2008.

Immelt added that GE has sold $52 billion worth of "slower growth and more volatile businesses" since 2003, then invests the proceeds at faster-growing businesses.According to the reports, GE has underperformed the market since Immelt assumed leadership seven years ago.

The company's shares fell 24 cents to $32.13 on Friday.