Cowen and Company Equity Research Analyst Matt Elkott, who covers the railway supply sector, on May 4 issued a report that looks favorably upon two potential combinations: Trinity and GATX, and Wabtec and GE Transportation.
Reports by Bloomberg of a potential sale of GE Transportation to Wabtec Corp. surfaced late Friday April 20, resulting in Wabtec shares gaining 4.5%. The potential transaction size is $6.8 billion, according to Bloomberg.
FORT WORTH, TEXAS, MARCH 20, 2018: In nine weeks’ time, the GE Manufacturing Solutions (GEMS) one-million-square-foot, 71-acre, 500-employee facility in Fort Worth, Tex., part of the GE Transportation supply chain, can take an aging locomotive and, through a modernization program, upgrade it to state-of-the-art technology.
GE Transportation and the Port of Long Beach, Calif., are collaborating to improve cargo flow at the busiest port complex in North America.
GE Transportation has signed a $1 billion framework agreement with Ukrainian Railways for supply of 30 TE33A Evolution Series freight locomotives, additional locomotive kits over 10 years, rehabilitation of locomotives in the railway’s legacy fleet, and long-term maintenance services.
GE Transportation’s Contagem, Brazil, locomotive assembly plant is operating with a mixed-model moving assembly line, which GE calls “a new approach to manufacturing locomotives.”
GE Transportation has signed two contracts valued at more than $900 million with Kazakhstan’s state-run railroad Kazakhstan Temir Zholy (KTZ)—the company’s largest international rail customer—for 300 switcher locomotives and an 18-year service agreement to manage maintenance and repair of 175 Evolution™ Series passenger locomotives.
CN will acquire 200 new locomotives over the next three years from GE Transportation—the General Electric division that CEO John Flannery recently said would be sold off because it is a business “that drains investment and management resources without the prospects for a substantial reward.”
Monday the 13th at General Electric: The 125-year-old corporation, among the world’s oldest, announced a massive, aggressive downsizing and restructuring, a reduced dividend, and an in-the-works divestiture of its storied Transportation division, one of the world’s largest, most successful builders of railway locomotives.
General Electric announced that Rafael Santana, president and Chief Executive of GE Latin America, has been named president and CEO of GE Transportation, effective November 1.