GE to split to pursue “strategic flexibility”
Energy services and equipment company GE said November 9 it would split into three separate entities – aviation, healthcare and renewables – to better streamline its strategic focus.
GE has struggled as least since the recession from 2008 and eventually had its listing removed from the Dow Jones Industrial Average three years ago. The company reported third quarter earnings of $18.4bn, down 1% from the same period last year.
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GE chair Lawrence Culp said dividing the company along its major business segments would pave the way toward future improvements.
“By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees,” he said.
In its third quarter earnings, the company saw orders increase, driven largely by offshore wind. Revenues in the renewable energy segment moved lower, however, and the company said the outlook for that component was “roughly flat.”