What Happened
GE said Monday its healthcare unit will be called GE HealthCare, with a purple monogram, and listed on the Nasdaq under the ticker symbol “GEHC” by early 2023.That segment accounted for nearly a quarter of GE’s 2021 revenue of $74.2 billion, according to Statista.
The company said it will also pack its power, renewables, and energy financial services into a unit called GE Vernova, which it expects to spin off by early 2024.
Following this, GE said it would become an aviation-focused firm called GE Aerospace, helmed by parent firm CEO Larry Culp. It will also own the GE trademark and provide long-term licenses to other companies.
Why It Matters
Once America’s most valuable company, GE has fallen very far from its glory days of being consistently ranked among the top 10 Fortune 500 firms, as it struggled to overcome the effects of the 2008 financial crisis.Culp’s turnaround plan unveiled in November was aimed at reducing debt, simplifying operations and reviving battered shares and putting in front and center its cash cow aviation business that makes engines for clients such as Boeing Co and Airbus SE.
In 2021, GE’s aviation unit brought in a revenue of $21.31 billion.
