GENERAL ELECTRIC REINVENTS ITSELF

INFORMATION ABOUT THE MARKETS AND YOUR MONEY.

- ANNE KATES SMITH

General Electric, one of the most storied conglomerates in the U.S., is streamlining itself in a bid to add value for shareholders, starting with the spin-off of its health care businesses. GE HealthCare (symbol GEHC) officially began trading January 4, opening at $54 a share and closing at $60. GE share- holders received one share for every three shares of GE they held. The spin-off is the first of two: GE is cutting loose its energy unit in early 2024; aviation-focused GE Aerospace will be what's left after the spin-offs.

The original GE was formed by the 1892 merger of Thomas Edison's Edison General Electric Co. with another electrical manufacturer. The company became an original constituent of the Dow Jones industrial average in 1896, where it remained until 2018. The sprawling conglomerate became known for everything from lightbulbs to jet engines. Now, it's hoping that the sum of its parts will add up to more than the whole.

The health care business makes and services a variety of medical imaging equipment, among its other products and services. It generated about $18 billion in sales in 2021, roughly half from recurring revenue sources. GE told analysts it expects the spun-off business to generate internal revenue growth at an annual rate in the mid-single-digit percentages, aided by aging demographics, data-driven precision care and other long-term, global trends.