As General Electric CompanyGE enters 2023, it will split off its healthcare unit, completing a step in the breakup of the industrial giant.
It will face questions about shedding its power businesses for the rest of the year.
GE Healthcare Technologies Inc will start trading this week, leaving the conglomerate with jet engines, natural gas-powered turbines, and wind turbine units.
The gas and wind turbines will be combined with other GE energy businesses into a new unit GE Vernova that will split off in early 2024.
The once profitable power-generation business produced losses and concerns about its future as the world moves toward greener energy sources.
The onshore wind-turbine business has struggled with cost inflation and supply-chain problems.
Scott Strazik, CEO of GE Vernova, has already reversed the cash flow of the power business, which burned through about $2.7 billion in 2018.
It is now cash-flow positive. He is now restructuring the renewables business, which is expected to post a loss of about $2 billion this year.
“Within gas power, we’re really on the other side of the journey,” Mr. Strazik said in an interview. For wind, “I see a similar dynamic with gas, where in the first year, you ground yourself. In the second year, you work towards a material improvement,” writes Wall Street Journal.
Based on his forecasts for 2024 earnings, the analyst estimates that GE Aerospace could have an enterprise value of $94 billion, while GE HealthCare is at around $48 billion, with GE Vernova fetching less than $13 billion.
Price Action: GE shares are up 0.25% at $84.00 during the premarket session on the last check Tuesday.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok
