To no one’s surprise GE has rapidly completed its strategic review. The move comes after the S&P Dow Jones Indices recently removed the company from the Dow Jones Industrial Average.
GE will focus on aviation, power, and renewable energy, creating a simpler, stronger, leading high-tech industrial company, according to John Flanner, chairman and CEO of GE. In addition to the pending combination of its transportation business with Wabtec, GE plans to separate GE Healthcare into a standalone company, pursue an orderly separation from BHGE over the next two to three years, make its corporate structure leaner, and substantially reduce debt, noted Flanner.
Kieran Murphy, president and CEO of GE Healthcare, will continue to lead GE Healthcare as a standalone, maintaining the GE brand.
“GE Healthcare’s vision is to drive more individualized, precise, and effective patient outcomes. As an independent global healthcare business, we will have greater flexibility to pursue future growth opportunities, react quickly to changes in the industry, and invest in innovation. We will build on strong customer demand for integrated precision health solutions and great technology with digital and analytics capabilities as we enter our next chapter,” said Murphy.
“GE Healthcare is an industry leader with financial strength, global scale, and cutting-edge technology. Our talented healthcare team will continue delivering precision health solutions, building on our heritage of technology innovation that delivers patient outcomes,” added Murphy.
GE Healthcare recorded over $19 billion in revenues in 2017 and posted 5% revenue growth and 9% segment profit growth in the same year. The business provides medical imaging (including contrast agents), monitoring, biomanufacturing, and cell therapy technology, leveraging deep digital, AI, and data analytics capabilities. Its products and services are used by customers in 140 countries around the world.