U.S. industrial giant General Electric (GE) announced its plan to split into three companies focused on aviation, health care & energy, following years of poor stock performance. The decision was received with praise from Wall Street analysts.
Who is affected🤷 GE provides aviation, power, renewable energy, healthcare, & financial products & services. While aviation generates the most revenue, healthcare generates the most profit.
GE spent periods as the largest company by market value as recently as the early 2000s, but then the financial crisis hit, & GE never really recovered since then. GE’s revenue in 2020 was less than $80 billion, far from the more than $180 billion in revenue it recorded in 2008.
Why is this important🤔 “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,” CEO Lawrence Culp said in a statement.
