General Electric, a historic American manufacturing giant, has completed its transformation into three separate companies, marking the end of its era as a sprawling conglomerate. The company, renowned for its diverse range of products from light bulbs to jet engines, has split into entities focused on aviation, energy, and healthcare.
In November 2021, GE announced its intention to divide into three companies, with a focus on aviation, energy, and healthcare. This move followed the company's earlier divestment of its appliances division and the discontinuation of light bulb sales in 2020.
Under the leadership of former CEO Jack Welch, GE experienced significant growth and success, becoming a Wall Street favorite. However, the company's stock performance began to decline in the early 2000s, leading to the recent split.
The split signifies a shift away from the traditional conglomerate structure that GE had maintained for decades. CEO Larry Culp emphasized the company's rich history and expressed optimism for the future, stating that the split marked a new beginning for GE.
The aviation business, now known as GE Aerospace, remains the core of GE's operations. With a focus on jet and turboprop engines, GE Aerospace aims to achieve significant operating profits by 2028.
GE Vernova, the energy wing of the company, includes divisions such as GE Renewable Energy and GE Power. With a substantial global presence in gas and wind turbines, GE Vernova plays a significant role in electricity generation worldwide.
GE Healthcare, the third entity resulting from the split, specializes in diagnostic scanners, imaging technology, and software. The company began trading on the Nasdaq in January 2023.
Following the completion of the split, GE Aerospace, GE Vernova, and GE Healthcare have all begun trading as independent public companies. The successful launch of these entities marks a significant milestone in GE's multi-year transformation.
In trading following the split, GE Aerospace shares rose by 2.8%, GE Vernova saw an increase of about 3.9%, while GE Healthcare experienced a slight decline of 0.7%.
