GE doubled down on fossil fuels in 2015 under Immelt with the $10.3-billion purchase of French group Alstom SA’s (ALSO.PA) power business. Despite cutting jobs and shedding businesses, GE’s results continued to deteriorate, mainly due to problems at its power plant division, which makes electric generating equipment. Culp, 55, who was named to GE’s board in February, was CEO of Danaher Corp (DHR.N) from 2000 to 2014, helping grow an industrial company into a broader conglomerate through a series of acquisitions.įlannery’s departure underscores the slow pace of his efforts to turn around GE. GE’s board, meeting in the last few days, unanimously picked H. GE Power’s falling profits last year forced GE to slash its overall profit outlook and cut its dividend for only the second time since the Great Depression.
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With a market capitalization below $100 billion as of Friday, GE was worth less than a fifth of its peak value a generation ago. The shares had dropped more than half since Flannery became CEO in August 2017, replacing Jeff Immelt, who had led GE since 2001. GE shares jumped 14 percent to $12.88 in early trading as investors bet Culp could re-energize the GE brand and more quickly transform its portfolio.
#GE STOCK PRICE AFTER ALSTOM WRITEDOWN FOR FREE#
The struggling energy, health and transportation conglomerate said it would fall short of its forecast for free cash flow and earnings per share for 2018 due to weakness in its power business, something analysts had expected.
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General Electric Co (GE.N) ousted Chief Executive Officer John Flannery in a surprise move on Monday, replacing him with outsider and board member Larry Culp, and said it would take a roughly $23-billion charge to write off goodwill in its power division, primarily from a large 2015 acquisition, Reuters reported.