Iconic US manufacturer will split into healthcare, energy and aviation businesses
Visitors look at a model of the LEAP engine at the General Electric booth at the China International Import Expo in Shanghai, China, on November 8, 2021. Picture: BLOOMBERG/QILAI SHEN
“What we’re doing today is creating three outstanding investment-grade, global leaders in healthcare, aviation and energy,” CEO Larry Culp said in an interview. “GE has led in these markets for a long time and today we’re setting ourselves up for another century of leadership.” One sign of how much GE had fallen by the wayside: 20 years ago, it was the world’s largest company with a market capitalisation of $401bn. Five years ago it was just hanging on in the top 10; and as of Monday there were dozens with bigger market caps in the S&P 500.Culp, who previously reshaped Danaher, was tapped as GE’s CEO in October 2018 as the company was facing multiple crises including trouble at its financial services arm and power business.
“What we’re really doing is positioning these businesses to reach their full potential,” Culp said. “There is no question that this is the best way in our view to create long-term value.”