GE Healthcare (NYSE:GE) is looking to reverse a slump in operating margins with a 2% increase this year, CEO John Flannery said last week.
The goal is 18% by the end of 2018, Flannery said during a GE Healthcare investor presentation March 11. The imaging and healthcare IT business expects to post operating margins of 16.7% this year, up from 16.3% last year.
Flannery said the gains will come from by tripling GE Healthcare’s cost-cutting measures, new products and an increased contribution from digital services revenue. The division isn’t planning to sell of any businesses as part of the margin push, he said.
