NEW YORK (TheStreet) -- GE Healthcare (GE) - Get Report CEO John Flannery appeared on Friday morning's "Bloomberg Markets: European Close" on BloombergTV to discusses the company's business ventures and how it will increase profitability.
"I've been in the job for about two years and I think we've really repositioned the business, and having it growing again, the profit growing again," Flannery said. "Part of that was internal in terms of our cost structure etcetera. More than that we've repositioned the business strategically to fit in the industry."
BloombergTV's Vonnie Quinn questioned Flannery on how the company goes through such a strategic repositioning in order to become the supplier for say a company focused on cell therapy.
"First and foremost we start with the customer and the market all the time," he responded. "That's critical, what is going on in the market, what do customers need, how do we support that?"
Flannery says the company built out a suite of services that helps clients get to the market faster and produce more efficiently at a lower cost.
About 20% of GE Healthcare's business is in the technology sector, which is changing at a fast pace, Quinn pointed out. She questioned the CEO on how the company can stay at the forefront of that.
"This is a huge change and inflection point in the industry," Flannery said. "The division you're referencing is our healthcare technology division, it's a digital software business. That's probably the number one change in the industry today."
The digitization of the healthcare industry is transforming it, Flannery continued. He noted that healthcare has been late to the tech game when compared to other industries.
"Fundamentally this allows us to do all sorts of advanced, analytic machine learning connectivity. It allows our customers on the imaging side to be faster, more accurate, lower cost and it allows our life science customers as well to produce much more efficiently," Flannery said.
Looking ahead Quinn asked Flannery if he sees any M&A opportunities in GE Healthcare's future.
"We'll do selective M&A, wouldn't say anything that takes us into a different part of the healthcare industry," he responded. "We always look for things that fit into the basic platform that we have right now."
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate GENERAL ELECTRIC CO as a Buy with a ratings score of B-. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, solid stock price performance, impressive record of earnings per share growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: GE