General Electric just abruptly ousted CEO John Flannery

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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!

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