Back to top

Image: Bigstock

GE Business Arm Gets Indian Railways' Nod for Locomotives

Read MoreHide Full Article

General Electric Company’s (GE - Free Report) business arm — GE Transportation — recently announced that Indian Railways has officially approved its 4,500-horsepower locomotives. This deal is part of the $2.5-billion agreement inked by General Electric in 2015, to assist the Indian Government’s Public Private Partnership program — ‘Make in India’.

GE Transportation and Relayr is also displaying GE's device lifecycle management — EdgeLINC platform — in this year’s InnoTrans international trade fair (Sep 18 to Sep 21). Additionally, this year, GE Transportation rolled out a high-speed diesel engine program in the trade fair which will serve the power generation, locomotive and marine segments.

Indian Railways Locomotive Project

The Indian Railways approved GE Transportation’s diesel-electric Evolution Series prototype locomotive, after reviewing the documentation and design aspects of the former for months. These state-of-the-art locomotives will improve India's rail-transit quality by enhancing rail infrastructure and modernizing its fleet. Especially, the non-imitable axle-control AC propulsion technology of the locomotives will cut down life-cycle cost and boost the hauling capability of Indian Railways. Also, the digitally-enabled predictive analytics feature of these locomotives will increase reliability of the trains. Per the deal, GE Transportation will establish new maintenance sheds and factories in India, as well as supply 1,000 locomotives to Indian Railways.

GE Transportation & Relayr Efforts

GE Transportation & Relayr will soon elaborate the cost, time and fuel efficiency of GE's EdgeLINC platform in InnoTrans. In addition to these, both companies will form a joint white paper to show how required systems and new regulations are enabling modern forms of remote control in the global rail industry.

New Diesel Engine Program

GE Transportation’s latest high-speed diesel engine will trim life-cycle costs, and boost the reliability and efficiency across locomotive, marine and power generation segments. It will be generating annualized savings of nearly $4,000 in services and $12,000 in diesel. Kazakhstan Temir Zholy (‘KTZ’) will be the first company to use GE Transportation’s new high-speed engine. GE Transportation will deliver the product to KTZ in 2019.

In May 2018, General Electric announced that it will divest its GE Transportation business to Wabtec Corporation. The company will receive $2.9 billion in cash at the time of the closing of the transaction (anticipated in early 2019) and its shareholders will likely gain 50.1% ownership interest in the combined entity. This move is in sync with General Electric’s ongoing portfolio-reshuffling strategy.

General Electric is poised to grow on the back of stronger innovation, strategic restructuring moves, solid international presence and robust end-market sales. However, over the past month, shares of this Zacks Rank #3 (Hold) company have rallied 2.9%, underperforming 3.3% growth registered by the industry it belongs to.

 

Stocks to Consider

Some better-ranked stocks in the same space are listed below:

Federal Signal Corporation (FSS - Free Report) sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 22.48% over the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carlisle Companies Incorporated (CSL - Free Report) holds a Zacks Rank #2 (Buy). The company delivered an average positive earnings surprise of 12.85% over the trailing four quarters.

Crane Company (CR - Free Report) also carries a Zacks Rank of 2. The company generated an average positive earnings surprise of 3.03% during the same time frame.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Published in