Updated April 2nd, 2024 at 16:34 IST

GE completes split, ending an era of industrial conglomerate

Under the leadership of CEO Larry Culp, GE finalised the separation of its aerospace and energy businesses

Reported by: Business Desk
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GE completes split: General Electric (GE) announced the completion of its three-way split on Tuesday, signalling the end of a storied chapter for the industrial conglomerate that once stood as a symbol of American business prowess.

Under the leadership of CEO Larry Culp, GE finalised the separation of its aerospace and energy businesses, which will now commence trading as distinct entities on the New York Stock Exchange. This move follows more than a year after the company's healthcare division began trading on the Nasdaq.


The breakup marks a milestone in Culp's efforts to revitalise GE, which had faced numerous challenges, including the fallout from the 2008 financial crisis that severely impacted its profitable arm, GE Capital.

Culp, who assumed the role of CEO amid the company's tumultuous period, initiated discussions about a potential breakup in late 2021. This decision came after GE's removal from the blue-chip Dow Jones Industrial Average in 2018, and the subsequent decision to reduce dividends to conserve cash.


The breakup has been a topic of discussion among Wall Street analysts, with some transitioning coverage of GE to their aerospace and energy counterparts. Analysts reflect on the company's rich history, tracing back to its inception in the late 1800s when Thomas Alva Edison merged Edison General Electric Co with a competitor to form GE.

With the completion of the split, GE Aerospace, known for its robust performance, is estimated to have a market value exceeding $100 billion. Culp, now CEO of GE Aerospace, expressed his enthusiasm for this milestone, emphasizing the historic transformation of GE.


Last month, GE Aerospace, a key supplier to Boeing and Airbus, forecasted operating profits of approximately $10 billion by 2028. The business is targeting an initial dividend payout of 30% of net income.

Moving forward, GE Aerospace and GE Vernova, the energy business, will trade on the NYSE under the symbols GE and GEV, respectively. The completion of the split represents a strategic move for GE as it continues its journey towards revitalisation and growth.


(With Reuters inputs)


Published April 2nd, 2024 at 16:34 IST