DOTmed Home MRI Oncology Ultrasound Molecular Imaging X-Ray Cardiology Health IT Business Affairs
News Home Parts & Service Operating Room CT Women's Health Proton Therapy Endoscopy HTMs Mobile Imaging
SEARCH
Current Location:
>
> This Story

starstarstarstarstar (1)
Log in or Register to rate this News Story
Forward Printable StoryPrint Comment

 

 

Business Affairs Homepage

Imagia completes acquisition of Cadens Medical Imaging Supports company's goal to develop new AI-based software products

Shanghai Pharma to acquire Cardinal Health China business for $1.2 billion Deal includes pharma and medical products distribution business

ACR chair urges congress to fund low-dose radiation research Last BEIR report on effects of low-dose exposure issued over 10 years ago

First Lady of Mozambique visits KPI Healthcare headquarters Finalizing medical equipment contract to reduce mortality in African nation

Konica Minolta signs group purchasing agreement with Premier for the Exa platform The three-year deal brings special pricing to 3,900 hospitals

Siemens Healthineers IPO: New details from CEO, Joe Kaeser Internal preparations expected to conclude by March

Mike Kaufmann Cardinal Health names new CEO

Why employers with dispersed workforces should care about physician quality Lower quality treatment yields higher systemwide expenses

Imaging departments stay afloat during hurricanes Advice from the front lines of Harvey and Irma

Stryker partners with Philips to offer new and reprocessed ECG leads for one low price May divert millions of pounds of waste from landfills per year

GE to whittle down, focus more on health care

by Thomas Dworetzky , Contributing Reporter
Engineering giant GE is making significant changes, including plans to more tightly target areas – likely including health care, aviation and power – it believes will prove most profitable, CEO John Flannery revealed at an investor meeting yesterday.

He also announced that its dividend would be cut in half – a 12-cent quarterly dividend, down from 24-cents, according to Reuters.

Story Continues Below Advertisement

CT, MRI, NM, SPECT/CT, PET & PET/CT service, refurbished systems and parts

Accelerate your ROI with our Black Diamond Certified refurbished systems. One year warranty - ISO 13485 Certified - FDA registered - Over 65k parts in inventory



Earnings in 2018 would most likely also be down – to $1-to-$1.07 a share.

"We understand the importance of this decision to our shareowners and we have not made it lightly,” he said. “We are focused on driving total shareholder return and believe this is the right decision to align our dividend payout to cash flow generation."

Flannery has proposed unloading as much as $20 billion worth of assets, such as units in lighting and transportation, according to the Milwaukee Business Journal.

Part of the shift includes staff cuts, he told those on the conference call. Roughly a quarter of corporate employees, about 1,500 jobs, will be eliminated. Beyond that, he and other execs would give up long-term businesses, according to Forbes.

Selling assets, Flannery stressed, would be done with “a very dispassionate eye.”

While the move is in the right direction, one analyst at Melius, Scott Davis, told Reuters, “it is not enough. They need to cut more cost ... GE is still a bloated company with duplicate costs up and down the organization.”

Flannery faces big challenges in the power and transportation divisions, where operating profits could dip 25 percent – and GE Capital, where net income could drop 80 percent.

Reports suggest that GE will pivot to a bigger move on aviation, renewable energy gear and health care. Flannery ran the health care business before taking the helm of GE. He joined in 2014, and led its turnaround, building “organic revenues” five percent, and margins by 100 basis points in 2016.

In late October, however, news reports cited unnamed sources who said that there might be a sale in store for the health care IT business.

In early October, GE weighed in with third quarter results that CEO Flannery called “horrible,” according to Reuters, calling the organization's strong parts weighed down by the weaker ones that, “drain investment and management resources without the prospect for a substantial reward.”

Back to HCB News
  Pages: 1

Business Affairs Homepage


You Must Be Logged In To Post A Comment

Advertise
Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Directory
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Requests
Gold Service Dealer Program
Receive RFP/PS
Requests
Healthcare Providers
See all
HCP Tools
Jobs/Training
Find/Fill
A Job
Parts Hunter +EasyPay
Get Parts
Quotes
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Quotes
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2017 DOTmed.com, Inc.
ALL RIGHTS RESERVED