GE considering breakup after continued issues
General Electric (GE) has experienced a lot of change in recent years, but a much bigger transformation could be on the horizon as a new report indicates the company is considering breaking itself apart.
Sources have also told CNBC’s David Faber that a breakup of GE is “likely” and “could come as soon as this spring.”
John Flannery, GE CEO, said on a conference call the company will be taking a $6.2 billion after-tax charge for the fourth quarter of 2017 and hinted at bigger structural changes in the future.
“Today, I am more convinced than ever, that we have substantial underlying strengths and value that have been suppressed in the current context,” Flannery said during the call, as quoted by CNBC writer Tae Kim. “As a result, we are looking aggressively at the best structure or structures for our portfolio to maximize the potential of our businesses, continue to deliver outstanding products and services to our customers, enhance our ability to provide attractive opportunities for our employees, while maximizing value for our shareholders.”
In November 2017, Flannery announced GE was looking to focus on its three biggest business lines: healthcare, the segment Flannery used to lead before taking over as CEO, along with aviation and power.
A GE spokesperson told HealthExec Flannery has "consistently shared that he has been taking a comprehensive look at every aspect of the company" in evaluating its portfolio, and that "all options are on the table."
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Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.