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


Log in or Register to rate this News Story
Forward Printable StoryPrint Comment

 

 

Business Affairs Homepage

Why Amazon’s winning the healthcare battle Analyzing the PillPack acquisition and other recent moves by the online retail giant

Philips to oversee strategic revamping of German-based providers Upgrading and replacing equipment in two separate partnerships

Medmo lets patients set price for radiology imaging tests A travel industry concept comes to healthcare

Bruker in deal to acquire JPK Instruments JPK makes microscopy instruments for biomolecular and cellular imaging

First radiology center opens in Zimbabwe capital to help curb shortage Currently 115 radiologists in country of 14 million people

Onkos Surgical and Insight Medical partner to bring augmented reality to tumor surgery Could this become the new standard of care?

Veritas closes $1 billion GE Healthcare software unit buy Will run newly acquired business as a stand-alone company

Praxair in deal to sell European assets to Taiyo Nippon Sanso Move is dependent on the successful closing of the Praxair-Linde merger

Precision X-Ray and Faxitron Bioptics combine business assets Forming a new global leader in biological irradiation

Ultrasound Versus IR: Making decisions about real-time location systems Doing your homework is key to making the right investment in RTLS

GE to be removed from Dow Jones Industrial Average

by Thomas Dworetzky , Contributing Reporter
After 110 years, Dow Jones Industrial Average's original member, General Electric, is out of the blue-chip index.

Walgreens will replace it.

Story Continues Below Advertisement

RaySafe helps you avoid unnecessary radiation

RaySafe solutions are designed to minimize the need for user interaction, bringing unprecedented simplicity & usability to the X-ray room. We're committed to establishing a radiation safety culture wherever technicians & medical staff encounter radiation.



GE had been in the 1896 Dow and in the average continuously since Nov. 7, 1907.

The news comes as yet another blow to the embattled behemoth. In the last year, according to the New York Times and other news organizations, the stock fell 55 percent against just a 15 percent overall fall of the Dow.

The Dow, a price-weighted index, gives more impact to higher-priced stocks than its cheaper ones.

“The low price of G.E. shares means the company has a weight in the index of less than one-half of one percentage point,” David Blitzer, chairman of the index committee at S. & P. Dow Jones Indices told the Times. “Walgreens' Boots Alliance’s share price is higher, and it will contribute more meaningfully to the index.”

The stock changes also, symbolically at least, move the index away from its more industrial roots and toward a better reflection of today's more service-oriented economy.

Blitzer told the Times that the change will make the index “more representative of the consumer and healthcare sectors of the U.S. economy.”

GE has been going through both financial and repositioning challenges, which, in some ways, have come to a head since June, 2017, when John Flannery, former president and CEO of GE Healthcare, was tapped to replace Jeff Immelt as CEO of the entire multinational conglomerate corporation.

Flannery's deep international and financial experience made him the top pick. “John has spent almost half of his career living outside of the United States and has led complex financial and industrial businesses all over the world, including running GE Healthcare, GE in India and the business development team for GE, through the successful acquisition of Alstom,” said Jack Brennan, lead independent director for GE’s board of directors, in a statement at that time.

The problems hit the news in January, when Flannery warned, in a conference call, that GE could be headed for more radical transformations – thanks, in some part, to a massive a $6.2 billion charge, due to a poorly-performing legacy portfolio of long-term care insurance. It also told investors that it was setting aside $15 billion to cover GE Capital obligations for the next seven years.

“Needless to say, at a time when we are moving forward as a company, I am deeply disappointed at the magnitude of the charge,” Flannery said at the time. “It’s especially frustrating to have this type of development when we’ve been making progress on many of our key objectives.”

Back in November, 2017, the CEO advised that the company would focus on jet engines, power generation equipment and healthcare – and rid itself of about $20 billion in other assets.

“We are looking aggressively at the best structure or structures for our portfolio to maximize the potential of our businesses,” he said.

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 ©2001-2018 DOTmed.com, Inc.
ALL RIGHTS RESERVED