The board of directors of traditional industrial giant General Electric (GE.US) officially announced its approval of the previously proposed GE Vernova spin-off plan, clearing the way for the formal independent listing of GE Vernova and GE Aerospace. H. Lawrence Culp, Jr., Chairman and CEO of General Electric and CEO of GE Aerospace. The two companies will be completely independent, with GE Vernova focusing on the power market and the energy transition, and GE Aerospace focusing on the aerospace business.

USB-6363  GE Vernova is expected to begin trading on the New York Stock Exchange on April 2, 2024 under the tentative ticker symbol “GEV.” Upon the formal completion of the planned spin-off and spin-off, GE will continue to operate under the name GE Aerospace. GE shareholders will continue to own common stock in GE, but the GE name will change to GE Aerospace, which will continue to be listed on the New York Stock Exchange under the ticker symbol “GE.”

In order to realize the separation and spin-off plan, GE’s current Board of Directors approved the distribution of all common shares of GE Vernova to GE shareholders. On March 19, 2024 (the record date for the proportion of shares allocated), holders of GE common USB-6363  stock will be entitled to receive one share of GE Vernova common stock for every four shares of GE common stock held. The allotment ratio is expected to officially occur before the U.S. market opens on April 2, 2024.

For U.S. federal income tax purposes, the distribution will be made in a tax-efficient manner to GE’s U.S. shareholders. The distribution is subject to certain conditions described in the registration statement on Form 10 filed by GE Vernova.

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As GE shareholders, GE shareholders do not need to take any action to receive the GE Vernova common stock to which they are entitled. In addition, shareholders participating in the company’s divestiture plan will not be required to pay any consideration and will not be required to give up or exchange any of GE’s common stock.

GE expects that the GE Vernova common stock formally divested by the company will begin trading on or about March 27, 2024 on the New York Stock Exchange under the symbol “GEV WI.” After this, GE Vernova common shares will begin “regular” trading on the New York Stock Exchange on April 2, 2024, with the official trading symbol “GEV.”

The US traditional industrial giant General USB-6363  Electric previously announced the fourth quarter of 2023 results before the US stock market opened on January 23. By business: General Electric Q4 Aerospace (GE Aerospace) revenue of $8.852 billion, up 12% year-over-year; The division’s Q4 profit was $1.598 billion, up 11%, and total orders were $10.620 billion, up 10%. GE’s Q4 Renewable Energy segment (part of GE Vernova) reported revenue of $4.213 billion, up 23% year-over-year. The division’s Q4 loss was $347 million, narrowing 24% year-over-year, and orders totaled $5.069 billion, up 1% year-over-year. GE’s Q4 Power segment (part of GE Vernova) reported revenue of $5.786 billion, up 15% year-over-year. The division’s Q4 profit was $759 million, up 10 percent, while total orders were $5,728 million, up 5 percent.

Ahead of the historic massive spin-off, GE’s 2024 Q1 profit outlook fell short of analysts’ consensus estimates. In its earnings report, GE forecast that profit for the current quarter would fall short of analysts’ expectations, largely because of the continuing large gap between the USB-6363  company’s expanding and growing aerospace business and its recovering energy business. Ge forecast first-quarter adjusted earnings per share of 60 cents to 65 cents, below the average analyst estimate of 70 cents.

The prospect brings a disappointing end to GE’s century-long run as a comprehensive, traditional industrial conglomerate, as the 135-year-old company prepares to split up in early April. After the spin-off of GE healthcare in 2022, GE will then separate its aerospace and energy businesses into separate entities, which is the goal of Chief Executive Officer H. Lawrence Culp, Jr. The result of a years-long effort to save this declining icon of American manufacturing.