GE confirms plans to exit appliance business

The industrial conglomerate, one of the world's largest companies, said in a statement Friday that the move is part of an ongoing plan to exit "slower growth and more volatile businesses."

Last year, Fairfield-based GE shed its underperforming plastics business by selling it to a Saudi Arabian company for $11.6 billion.

"We think this is further recognition the company needs to exit the slow and no-growth businesses," said Robert Schenosky, an industrial analyst with Jefferies & Co. in New York who has favored asset sales. "It's a recognition that there is not anything that is untouchable at this point."

Schenosky said it's hard to predict what else GE might sell.

"Certainly other candidates could include the lighting business and even potentially NBC Universal," Schenosky said.

GE could be a dramatically different company in the coming years, Schenosky said. He also said the company needs to look at the type of acquisitions it makes, saying deals in health care and entertainment made the company larger but did not boost earnings power in a meaningful way.

Matt Collins, an analyst at Edward Jones in St. Louis, said he would not be surprised to see GE sell its lighting and electrical distribution businesses.

"I think we'll continue to see them make strategic moves to get the stock working over the long term," Collins said. "This will probably be another noisy year for them."

GE shares fell 24 cents to $32.13 in trading Friday, near their 52-week low. Shares have traded between $31.50 and $42.15.