Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

GE CEO Larry Culp says it will move as quickly as it can to split up company but will do it right

by
November 9, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

General Electric CEO Larry Culp said Tuesday that management will move as quickly as it can to split up into three companies but it will focus on doing it right.

The industrial giant announced earlier in the day that it would break up into three businesses focused on aviation, health care and energy. The news sent shares up about 6% in morning trading.

RELATED POSTS

General Mills and Micron Raised Their Dividends. Banks Should Be Lifting Theirs Soon, Too.

Who Is Still Buying Russian Oil And Gas?

“We know looking at spins elsewhere that the focus and the accountability always increase,” Culp said on CNBC’s “Squawk on the Street.” “We think we have an opportunity here as well to have sharper capital allocation and greater strategic flexibility.”

The aviation unit will keep the GE name after spinning off the health-care unit by early 2023 and the energy unit by early 2024. Culp told CNBC’s David Faber that the health-care business is the first to get spun off because the company still has some of the preparation from when it considered an initial public offering for the division a few years ago.

GE also announced Tuesday it expects it will have paid down $75 billion in debt from its 2018 peak by the end of the year. Culp said the debt repayment has helped make the split possible.

Culp also said the health-care business is facing some backlogs, while its aviation division is in the midst of its recovery from the pandemic.

“All in all, we cannot complain about this demand environment,” he said.

Some investors and Wall Street analysts have been pushing for years for the company to break up. The stock has underperformed against the market for the last two decades. Another benefit of the spinoffs could be investor bases that are better geared toward those three businesses, according to Culp.

Under Culp, GE has been selling off parts of the company — like its home appliance business and its embattled financial services arm — in an effort to simplify its business. Culp will hold his titles as chairman and CEO of GE until the energy unit is spun off, when he will become head of the aviation business. He will also serve as the non-executive chairman of the health-care business after its spinoff.

Culp said GE will keep updating investors and employees as the process progresses.

“There are far more questions today than we have answers for,” Culp said.

ShareTweetPin

Related Posts

General Mills and Micron Raised Their Dividends. Banks Should Be Lifting Theirs Soon, Too.

by
July 3, 2022
0

Text size Justin Sullivan/Getty Images General Mills and Micron Technology declared dividend increases this week, and various large banks announced...

Who Is Still Buying Russian Oil And Gas?

by
July 3, 2022
0

Reuters Video shows Ohio officers killed unarmed Black man in hail of bullets AKRON, Ohio (Reuters) -Video released on Sunday...

Will mortgage rates hit 7% in near future? Here’s what the chief economist of the National Association of Realtors says about that

by
July 3, 2022
0

Will mortgage rates rise? Getty Images/iStockphoto Mortgage rates have been on a steady climb upwards: While they started the year...

Recession Measures and NBER

by
July 3, 2022
0

by Calculated Risk on 7/03/2022 03:18:00 PM On Business Cycle Dating from NBER: The NBER's definition emphasizes that a recession...

Altria’s Dividend Yield Spiked After Juul Ban. The Payout Looks Secure.

by
July 3, 2022
0

The FDA's bid to ban Juul products—like these at a shop in El Segundo, Calif., on a recent day—has weighed...

Next Post

NY Fed Q3 Report: Total Household Debt Climbs to Over $15 trillion

General Electric Dropped a Bombshell. It Will Split Into Three Firms.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net