Published: Wed, October 03, 2018
Medicine | By Earnest Bishop

GE unexpectedly removes its CEO

GE unexpectedly removes its CEO

The shares climbed 8.2 percent to $12.22 in NY premarket trading Monday. During his time with GE, Flannery worked on a turnaround plan that would center on aviation, power, and health care.

General Electric Chief Executive Officer John Flannery presents the company's new strategy and financial targets to investors at a meeting in NY, U.S., November 13, 2017.

Mr Culp indicated that he will tackle the company's problems aggressively.

The once mighty conglomerate, long a standard-bearer of United States industrial preeminence, is still working to right the ship following the global financial crisis of a decade ago, which blew a hole in GE's once-massive lending business.

A note from Briefing.com said Culp's appointment was promising, saying that he led "Danaher's transformation from an industrial manufacturer into a leading science and technology company".

GE Power's falling profits a year ago forced GE to slash its overall profit outlook and cut its dividend for only the second time since the Great Depression.

GE, founded in 1892, has lost more than $500 billion in market value since 2000, the year former longtime GE CEO Jack Welch announced his retirement, according to Bloomberg.

'GE remains a fundamentally strong company with great businesses and tremendous talent.

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John Flannery was unexpectedly ousted as boss of General Electric yesterday as the $110 billion industrial conglomerate warned that troubles in its power business would cause it to miss its full-year profit forecast.

The company's power business, hit by problems with its latest generation of gas turbines, posted a US$10 billion loss past year. The deal expanded GE's exposure to gas, coal and nuclear power.

Danaher's stock soared over that time and prospered while GE's has struggled.

"The board is signaling to the market that we are not going to give anyone free reign like we did with Jeff Immelt", said Morningstar analyst Joshua Aguilar.

He brought familiarity with many of GE's flagship business units, but that alone would not suffice. We have a lot of work ahead of us to unlock the value of GE.

Davis said the stock price has probably already adjusted to expectations of no contribution from power.

Growth in the company's newly reinvented energy storage business, renewable generation and digital grid services has not reached the point of substituting for the conventional power revenues.

Scott Davis, lead analyst at Melius Research, hailed Culp as a "proven CEO with pedigree and the support of Wall Street". That's one reason why the company also said that it would record a $23 billion noncash impairment charge relating to its GE Power business, effectively writing down all the goodwill on its balance sheet from prior acquisitions in the segment, including Alstom.

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