GE HealthCare Issues Medium-Term Financial Targets

By Will Feuer

General Electric Co. laid out its medium-term financial targets for its healthcare business ahead of the spinoff of the company next month.

GE HealthCare Technologies Inc. is targeting medium-term organic revenue growth in the mid-single digits, while adjusted earnings before interest and taxes are expected to grow between a high-teens percentage and 20%. Free-cash flow conversion is expected to be at least 85%, the company said.

GE posted the targets ahead of its investor day, expected to begin at 8 a.m. ET in New York. GE HealthCare Chief Executive Peter Arduini and other executives are expected to outline growth plans for the business.

For 2022, GE HealthCare is expected to post free-cash flow of between $1.8 billion and $2.0 billion, and adjusted earnings before interest and taxes are expected to be at least $2.7 billion, according to a company presentation uploaded ahead of Thursday's event.

GE said last month that current shareholders would get one share in the new GE HealthCare business for every three shares they hold in GE. The separation is set for Jan. 3 after the markets close, and the new shares will trade on Nasdaq under the symbol GEHC.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

December 08, 2022 06:38 ET (11:38 GMT)

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