General Electric just abruptly ousted CEO John Flannery

General Electric just abruptly ousted CEO John Flannery

Culp, who turned around rival conglomerate Danaher during his 14 years at its helm, will become GE's chairman and chief executive immediately, following a unanimous vote by the company's board of directors.

Tusa added that GE shares tend to outperform on the day of major news events that "change the narrative" on sentiment such as the June 2018 news of plans to separate GE's health-care business and cut debt, as well as the resignation of former CEO Jeff Immelt in June 2017. The stock had been down more than 30% this year as of market close Friday. Culp, 55, was CEO of Danaher from 2000 to 2014. Danaher's revenue and market cap grew "five-fold" during his time at the company, according to GE.

GE's board, meeting in the last few days, unanimously picked Mr Culp as its new CEO.

The company has recruited two renowned turnaround experts to replace Mr Flannery.

"The challenges that GE faces (high leverage; Power's cyclical, structural and operational challenges; etc) are not easily or quickly fixable".

Investors will want Culp to "clean house, and fast", said Scott Davis, founding partner of Melius Research, in a research note where he compared GE's recent history to a slow but fatal train wreck.

Since achieving a peak market cap of $US594 billion way back in August 2000, GE has seen its value tumbled by nearly $US500 billion.

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. Just six months after taking over, GE was forced to pay $15 billion to make up for miscalculations at a remaining insurance divisions, catching Wall Street off guard.

"GE remains a fundamentally strong company with great businesses and tremendous talent", said Culp in a statement, adding that he and leadership "remain committed to strengthening the balance sheet, including deleveraging". GE cut its payout in half in late 2017. It's been selling off assets and trying to sharpen its focus since the recession, when it's finance division was hammered. "It could be that there are preparations that need to be made in providing more details and holding a conference call but we think it brings into question how serious the situation is", Tusa wrote Monday.

Some analysts said GE Power likely missed financial targets for the third quarter, contributing to Flannerys ouster.

Although its valuation tumbled when impacted by the financial crisis in 2009, the company recovered until shareholder confidence began to fall early previous year.

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now. and General Electric wasn't one of them!



Related Posts

Ansel Elgort scores lead role in Spielberg's 'West Side Story'
Tony Kushner wrote the new script for the West Side Story remake, which is expected to begin filming in the summer of 2019. Elgort, who is the first big name to be cast for the movie, showed off his singing chops in Baby Driver .

LNG Canada finally gives Trudeau the energy sector win he badly needed
Shell and its four partners have agreed to invest in a multibillion-dollar liquefied natural gas project in western Canada. RBC said it estimated Canada LNG's "cost breakeven was around $8 per mmBtu".

Christian Bale Is Unrecognizable As Dick Cheney In Upcoming Comedic Biopic!
It is not the first time Bale has pushed his body to its limits for a film. But in the trailer, you'll see that Bale is Dick Cheney . Vice hits theaters on Christmas day .

US, NATO say that new Russian missile violates nuclear treaty
After four years of diplomatic effort, he said, the living by the treaty and Russian Federation is not. Nato fears the 9M729 system contravenes the 1987 Intermediate-range Nuclear Forces Treaty (INF).

Kate Middleton to return from maternity leave with visit to forest school
The then Kate Middleton had just been thrust into the spotlight after news of her relationship with Prince William first emerged. August, 2005: Just four years after meeting William as a first-year student at St Andrews and Kate was already in the spotlight.

Berners-Lee launches company to guiode the next stage of the web
It's not yet clear whether email marketers will have to beg permission before sending emails to a Solid POD user. Solid is a framework that allows individuals to control their own data.

Amazon introduces Fire TV Stick 4K with Alexa Voice Remote in India
For one Roku supports HDR 10 over Dolby Vision , and those new cheaper devices aren't coming to the United Kingdom anytime soon. The same Amazon Fire TV Stick 4K is priced at $50 in the United States, but it's priced a tad higher in India though.

3 scientists win Nobel Prize in physics for laser inventions
The American, Arthur Ashkin , entered the record books of the Nobel Prizes by becoming the oldest laureate at age 96. The optical version - so-called optical tweezers - can capture and study living organisms without harming them.

Melania Trump visits slave dungeon in Ghana
Mrs Trump, who was born in Slovenia, is on her first visit to Africa, with a goal of highlighting child welfare on the continent. USA first lady Melania Trump meets with Fante chiefs to gain permission to visit Cape Coast castle , Ghana, October 3, 2018.

'Just Plain Wrong.' Susan Collins Criticizes Trump's Mocking of Christine Blasey Ford
Feminist author Jessica Valenti tweeted: "I don't have it in me to say something outraged about Trump mocking Dr Blasey Ford". White House adviser Kellyanne Conway told Fox News that "the president is pointing out factual inconsistencies".

© 2015 ExpressNewsline. All Rights reserved.