GE to refocus on healthcare, other select divisions

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GE  (NYSE:GE) said this week it aims to narrow its business focus to healthcare, power and aviation, according to a Reuters report.

The move comes as part of a maneuver the company hopes will center it behind the businesses with the most growth potential. GE will also focus on sectors where it has innovative technology, appropriate scale and a large base of installed customers, according to the report.

The conglomerate set an earnings target of between $1.00 and $1.07 for the next year, down from an earlier forecast, Reuters reports. The company will also look to cut its board size from 18 to 12 members, with 3 new directors to be added next year.

Late last month, GE released 3rd quarter earnings which met sales expectations but missed on earnings per share by a significant margin, though its healthcare biz saw both sales and profits grow.

GE’s Healthcare division posted profits of $820 million on sales of $4.7 billion for the 3 months ended September 30, clocking gains of 14.4% and 5.4%, respectively, compared to its performance during Q3 2016.

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