General Electric, a once-iconic symbol of American manufacturing, has officially completed its transformation from a sprawling conglomerate into three separate companies. The Boston-based company, known for its wide range of products from light bulbs to jet engines, saw its aerospace and energy businesses begin trading as independent entities on the New York Stock Exchange on Tuesday.
The decision to split into three focused companies – aviation, energy, and health care – was announced in November 2021, marking a significant shift for the company that had already divested itself of its appliance and light bulb businesses in recent years.
Under the leadership of former CEO Jack Welch, GE experienced a period of tremendous growth and success, becoming one of the most sought-after stocks on Wall Street. However, the company began to struggle in the early 2000s, leading to the eventual split into separate entities.
CEO Larry Culp, in a letter to shareholders, reflected on GE’s storied history and emphasized that the split was not an end, but a new beginning for the company. The aviation business, now known as GE Aerospace, remains the core of GE and is expected to generate significant operating profit in the coming years.
The energy business, named GE Vernova, includes renewable energy, power, digital, and financial services divisions, while GE Healthcare focuses on diagnostic scanners, imaging patents, and software.
With the successful launch of the three independent companies, GE has completed a historic transformation that marks a new chapter in its long history. In trading on Tuesday, GE Aerospace and GE Vernova saw gains, while GE Healthcare experienced a slight decline.
