Health Care

GE to sell off Baker Hughes

GE to sell off Baker Hughes”

General Electric said Monday it will exit its majority stake in Baker Hughes, an oilfield services company, over the next two to three years.

The changes will profoundly reshape an icon of American business, which is mired in one of the worst slumps in its 126-year history amid flagging demand for industrial equipment, weak cash generation and an accounting investigation by US regulators. Things got worse for GE in January, when it disclosed that the Securities and Exchange Commission was investigating the company's accounting after a $6.2 billion loss in its insurance business.

The company's latest round of winnowing arrived Tuesday, the first time since 1907 that GE will not be a member of the exclusive Dow Jones Industrial Average at the opening bell.

The company said it will be able to reduce its debt by $25 billion and remove additional risk as it reimagines itself as something very different from the multinational conglomerate it was before the Great Recession. Baker Hughes will be separated over the next two to three years.

"We are aggressively driving forward as an aviation, power and renewable energy company -three highly complementary businesses poised for future growth".

"Today marks an important milestone in GE's history", Flannery said. As speculation about GE's future mounted, many investors came to see GE-RE as an underpraised gem.

While acknowledging that GE Power needs to execute a "deep turnaround", with segment profits and orders having wilted a year ago, Flannery told investors to be patient, saying that the gas-fired power market is "not going away".

More news: Poland fined for ‘political and offensive banner

Flannery's latest moves cap a strategic review he has been pursuing since taking the helm previous year from Jeffrey Immelt, while effectively marking his second attempt to present a turnaround to investors.

The slimmed-down company will focus on jet engines, power plants and renewable energy, which GE hopes will reward battered shareholders who have seen the stock lose more than half its value over the past 20 years.

Since then, Flannery has agreed to unload GE's century-old locomotive operations.

GE expects to generate cash by selling about 20% of its stake in GE Healthcare and to distribute the remaining 80% to GE shareholders through a tax-free distribution.

In April, medical equipment maker Danaher Corp approached GE about potentially acquiring the life sciences division of its healthcare unit, a major source of sales that makes X-ray machines and hospital equipment, according to a person familiar with the matter. The company will separate GE Healthcare into a standalone company. The Munich-based manufacturer, which competes with GE in areas such as power-generation and medical scanners, sold shares in its Healthineers subsidiary in March, marking the country's second-biggest initial public offering in nearly two decades.

GE pledged to preserve its 48-cent-a-year dividend until the healthcare unit is spun off, partially appeasing investors who have expressed concerns about GE's ability to pay it.

A series of acquisitions and mergers followed over the next 25 years, until in 1920 when Victor Electric was acquired by GE, a manufacturer of x-ray tubes.

Like this



27 June 2018
Freeform Cancels 'Famous In Love' After Two Seasons
Freeform's Famous in Love is not returning for a third season - but someone forgot to tell the series star Bella Thorne . Thorne plays Paige in "Famous in Love" , who is catapulted into Hollywood life after landing a leading role in a movie.

27 June 2018
Merchants hold protests in Tehran Bazaar over Iran currency plunge
Concern about the rial's vulnerability is prompting ordinary Iranians to pour money into non-cash assets. Former President Barack Obama was criticized for not supporting the 2009 Iranian Green Protest Movement.

27 June 2018
Instagram adds group video chat and redesigned explore tab
More friends can join an Instagram call in progress, though you can mute them if you don't want to get more call invites. That opens new opportunities for co-browsing with friends as if you were hanging out together.

27 June 2018
Late Night Hosts Join Forces to Respond to Trump
The Late Show host then adds Conan O'Brien to the call. "Red Hen", Colbert confirmed with a decisive nod, ending the call. At one point, Fallon said of Trump, "I heard he said we're all no-talent, lowlife lost souls". "Well that's not right".

27 June 2018
Blood moon is coming
Lunar apogee is the moon's farthest orbital point from Earth making it appear particularly small and distant. This was visible mostly in the USA and Canada, and only involved a full moon, which was the first of 2018.

27 June 2018
Ant-Man 2: Civil War Aftermath & New Suit
Fans will have to wait until next year to find out what happens to the Avengers in the currently-untitled Infinity War sequel. Sadly, we don't know yet, but we're dying for one already, and we'll drop it right here when there is one.

27 June 2018
LeBron James unlikely to choose Lakers without Paul George
As one clever Twitter user pointed out, the real winners are the businesses below the billboards. It will debut on Tuesday, June 26 in the 6 p.m.

27 June 2018
Jimmy Fallon responds to Trump: 'Never called this human in my life'
The late night hosts came together in a sketch that opened both CBS' " The Late Show " and NBC's " The Tonight Show ". Colbert then said that couldn't be right because that description sounded more like TBS late night host Conan O'Brien.

27 June 2018
US Wants India To Stop Importing Oil From Iran By November
Rouhani's comments came after protesters angered by Iran's tanking economy confronted police in front of parliament Monday. Rouhani announced plans to boost Iran's foreign trade and give foreign companies a bigger role in its economy.

27 June 2018
Dead human body found in freezer at Atlanta Braves' SunTrust Park
The body of an employee was found in a freezer at SunTrust Park where the Atlanta Braves play, according to USA Today . The deceased person, a third party contractor, was located by another worker of the same company this afternoon.