General Electric built GE F101 engines built for B-1 Lancer strategic bombers. By RestonImages @

Sad! Once America’s most venerable industrial company, GE has announced plans to shrink itself to a fraction of its former self. GE is going to spin off its health-care business and exit the oil services business that former CEO Jeff Immelt entered near the top of the market. The new GE will be focused on power, aviation, and renewable energy. A leaner and more focused company will result.

The breakup of GE could have been done years ago from a position of strength, but former leadership dithered, and doubled down on a conglomerate strategy that is now unraveling. GE is now splitting up from a position of weakness.

The WSJ has more.

The final plan, unveiled Tuesday, focuses GE around its power, aviation and renewable-energy businesses. These units, which accounted for more than half of GE’s $122 billion in revenue last year, mostly sell turbines to power plants and engines to jet makers. The news confirmed an earlier report by The Wall Street Journal.

GE’s board approved the new strategy, and there are no plans to sell additional divisions or break apart the aviation and power divisions, said people familiar with the discussions.

The company will likely reduce its dividend payout following the spinoff of its health business and plans to pump more funds into its struggling finance arm next year, it said.

Read more here.