GE Abruptly Fires CEO John Flannery, Appoints Lawrence Culp as Chief Executive

GE CEO John Flannery

After less than two years and a precipitous decline in the share price at General Electric, John Flannery is being ousted as chairman and CEO.

Stock prices have decreased by more than half since Flannery took the top job in August of 2017, and with the news of his departure, GE's shares rose 15 percent before the opening bell on Monday. With a market capitalization below US$100 billion as of Friday, GE was worth less than a fifth of its peak value a generation ago.

GE now expects to miss its 2018 earnings forecast and take an impairment charge for nearly all of the US$23 billion of goodwill associated with its power segment.

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

At the start of the global financial crisis in 2008, it was one of the nation's biggest lenders, its appliances were sold by the millions to homeowners around the world and it oversaw a multinational media powerhouse including NBC television.But the economic crises revealed how unwieldy General Electric had become, with broad exposure damage during economic downturns.Shares of General Electric Co., based in Boston, surged 11 percent in midday trading.

GE warned Monday that it will miss its profit forecasts this year and it's taking a $23 billion charge related to its power business.

Culp was CEO and president of industrial manufacturer Danaher Corp. from 2000 to 2014.

‘Kind of appalling’: Republican senators criticize Trump for mocking Christine Blasey Ford
She said she was able to get away and run into the bathroom after Judge jumped on her and Kavanaugh, knocking them off the bed. Trump said that the current situation meant that some men are "guilty until proven innocent". "Vote him up or down".

Patrick Reed rips Spieth, Furyk after Ryder Cup loss
They beat Tiger Woods and Patrick Reed , 4&3, and are 3-0 as a pairing so far in this Ryder Cup. In other words, the lopsided nature of this contest must be considered something of a fluke.

Canadian steelworkers were 'sacrificed' to make new trade deal, union says
The new agreement, known as the United State-Mexico-Canada Agreement or USMCA , has a lot of wins for USA auto workers. Canada was able to secure an arrangement to avoid Trump's threatened tariffs on automobiles, however.

The industrial giant said John Flannery would be replaced by Larry Culp, former chief executive of manufacturing group Danaher, as it revealed the $23bn writedown charge.

As the problems in Texas occurred, Flannery held an emergency meeting last week, calling on staff to "fight for the company", according to The Wall Street Journal. Other divisions are on track, the company said in a statement today. The executive, who also teaches at Harvard Business School, only joined the GE board in April.

"The market seems to be welcoming a change in leadership but the new CEO will be facing numerous same problems Mr. Flannery faced", he said in a note to investors. The company was expelled this year from the Dow Jones Industrial Average.

"We remain committed to strengthening the balance sheet". That should be good news for GE shareholders, more than a quarter of whom traditionally own the stock directly through inheritance or as "retail investors", rather than as part of a basket of stocks through mutual funds or money managers. Now (7:57), GE is trading at $12.87 per share after a gain of $1.58 per share or 13.99% thus far today!

GE has been dogged by problems at its power division, which makes machinery for power plants and has struggled amid tepid demand.

Culp said in a statement, "We will move with urgency ..."

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 previous year.

Related news:

Hot News

isis-killer-beheading-video-story-top McConnell rejects request for briefing on FBI's Kavanaugh report
Oct 04, 2018 - 03:52
She said the actions of her Republican committee members are "expressly prohibited" by the Violence Against Women Act. A witness said that a friend of Kavanaugh's then threw a glass that hit the same patron in the ear, causing bleeding.

isis-killer-beheading-video-story-top Klopp frustrated by Liverpool attackers in Napoli defeat
Oct 04, 2018 - 03:51
Ancelotti added: "I said to my players 'just enjoy yourselves, the Champions League doesn't happen every day so just have fun". The Italian side were putting Liverpool under a lot pressure towards the 65th minute, looking seize their moments.

isis-killer-beheading-video-story-top Survivors of Indonesian Quake and Tsunami Scrounge for Staples
Oct 04, 2018 - 03:44
He added that a Singaporean military transport plane will help evacuate victims from the airport in Palu. Thousands of people are unable to return to their damaged or destroyed homes and aftershocks continue.

isis-killer-beheading-video-story-top MD Anderson professor talks about Nobel Prize win
Oct 04, 2018 - 02:53
Allison's team did the first experiments at the end of 1994, and the results were "spectacular", the Nobel organization said. Allison and Japanese Tasuku Honjo won the Nobel Prize for Physiology or Medicine in the 2018 for cancer research.

isis-killer-beheading-video-story-top Amazon unveils Fire TV Stick 4K with Dolby Vision, Atmos & HDR10+
Oct 04, 2018 - 01:50
The Alexa Voice Remote is said to support Bluetooth, multidirectional infrared technology along with cloud-based service. The feature will become available on all existing Fire TV devices in India, via a software update, starting November 14.

isis-killer-beheading-video-story-top United Nations court orders USA to halt Iran sanctions linked to humanitarian aid
Oct 04, 2018 - 01:35
He also said that there are existing exemptions for humanitarians purposes in the sanctions regime. Iran brought its case before the ICJ in The Hague, Netherlands, in July.

isis-killer-beheading-video-story-top Steve Bruce sacked as Aston Villa manager after cabbage attack
Oct 04, 2018 - 01:17
Bruce was close to completing two years in charge but Tuesday's chaotic 3-3 draw with Preston was his final match at Villa Park. But the improvement in form has not been forthcoming and Bruce has now been axed by new owners Nassef Sawiris and Wes Edens.

isis-killer-beheading-video-story-top Trump mocks Christine Blasey Ford at MS rally
Oct 04, 2018 - 01:05
Leaning: The local pressure is likely weighing on her decision, but Murkowski has a history of being tight-lipped until she votes. In order for Republicans to confirm Kavanaugh without any Democratic support, they can only afford to lose one of these senators.

isis-killer-beheading-video-story-top Emergency alert test going out to phones nationwide Wednesday
Oct 04, 2018 - 00:41
News of the alert prompted many to wonder if President Trump can text them directly and if he even wrote the alert himself. This alert could be used in the event of a major solar or magnetic event, or other national emergencies, Bruner said.

isis-killer-beheading-video-story-top Mark Judge's lawyer says he was interviewed by the Federal Bureau of Investigation
Oct 04, 2018 - 00:31
Well, do you think it was-no, it was one beer. "How'd you get there?" She doesn't remember how she got home, for example. Ford was compelling, but you can't make this decision based on emotion". "I respect her position very much", he said.

isis-killer-beheading-video-story-top The Rockies are moving on after historic win at Wrigley Field
Oct 04, 2018 - 00:30
They squandered a dominant start by Jon Lester , got shut down by Kyle Freeland and wasted several big scoring opportunities. Gore, Baez and Albert Almora Jr. then struck out, bringing a marathon game and a hard season to a fitting end.

isis-killer-beheading-video-story-top Jose Mourinho bites tongue despite Manchester United's draw against Valencia
Oct 03, 2018 - 08:56
And he couldn't contain himself as a lacklustre United were held to a goalless draw by the Spanish side in the first half. Despite the lack of chances created, Mourinho was satisfied with what he saw from his under-pressure team.

isis-killer-beheading-video-story-top UP raises aid for family of Apple exec killed by cops
Oct 03, 2018 - 07:16
There is no consistency between the statement of Sana (who was accompanying the victim) and the FIR. "The driver tried to run me over thrice when I asked the occupants in the vehicle to come out".

isis-killer-beheading-video-story-top 'I know you're not thinking. You never do.'
Oct 03, 2018 - 06:26
Can you imagine if I had? This afternoon, Donald Trump addressed reporters in a rare solo news conference. Others online also criticized the president's actions, many voicing support for female journalists.

isis-killer-beheading-video-story-top Chicago Cubs vs. Colorado Rockies in NL Wild Card Game
Oct 03, 2018 - 05:36
Strop was under consideration to return for the win-or-go-home game against the Colorado Rockies after missing the past two weeks. Jose Quintana was scheduled to start for the Cubs , while the Brewers had yet to name a starting pitcher as of Sunday evening.