General Electric has lost value equal to Facebook since peak

Marcus Newton
October 2, 2018

AP/Richard DrewGeneral Electric Chairman & CEO John Flannery is interviewed on the floor of the New York Stock Exchange.

"Under Culp, investors may be willing to look further out to assess what GE may be worth post the planned portfolio moves, which may sustain the bounce in the stock that we expect today". "It is a privilege to be asked to lead this iconic company", Culp said in a statement.

The company, a bellwether for manufacturing, also announced a $23bn impairment charge against the value of its power division.

"GE remains a fundamentally strong company with great businesses and tremendous talent, " Culp said Monday in a statement. The board looks forward to working with Larry and his team to return GE to growth and long-term success. The executive, who also teaches at Harvard Business School, only joined the GE board in April. "I am excited to get to work".

In other news, the company said that due to weak performance in the GE Power business, it will fall short of guidance for free cash flow and EPS for the fiscal 2018 year.

General Electric head John Flannery is out after just more than a year at the top of the company.

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GE, however, has not seen such gains, particularly when it comes to its power business which was hit by problems with its latest generation of gas turbines and posted a $10 billion loss past year.

The company has also appointed former American Airlines chief executive Thomas Horton as lead director on its board. "We see a significant cut to dividend earlier than previously expected".

"Of course, GE is in a very different starting position than Danaher at the time with GE's Power, balance sheet and cash challenges", Winoker said.

GE has continued to struggle, including with a recent issue with problems with turbines in its important power unit.

"A new CEO might not change the facts of the current headwinds, but as we have noted many times, it is hard to refute Larry Culp's track record and accomplishments at Danaher during his tenure".

Flannery replaced Welch successor Immelt, himself pushed out earlier than expected last summer after nearly 16 years at the top.

Other reports by MaliBehiribAe

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