GE's Flannery steps down as CEO, shares jump 15 percent

GE's Flannery steps down as CEO, shares jump 15 percent

GE's Flannery steps down as CEO, shares jump 15 percent

General Electric Co. gained the most in over nine years after the industrial manufacturer named a highly respected industry veteran as its new CEO on Monday, rekindling investors' hopes for a successful turnaround of the struggling behemoth. Culp said in a statement, "We have a lot of work ahead of us to unlock the value of GE".

GE has endured a hard year in which it has lost more than half of its stock market value and been ejected from the Dow Jones Industrial Average after more than a century's membership. It is a privilege to be asked to lead this iconic company.

The industrial conglomerate also said it will miss previously provided guidance for free cash flow and earnings per share in 2018, because a weak performance in its power business offset in-line performances in its other businesses. On behalf of the board, I thank John for his significant contributions and long service to GE. The company said that the goodwill impairment charge is likely to constitute all of this balance.

While noting that while Culp has work to do, "I wouldn't want to bet against Larry", Davis added.

Having such a short run is very uncharacteristic of a GE CEO, as before Flannery the company only had four CEOs in the previous 54 years.

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

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

That same day, Flannery said GE might take the radical step of splitting up the main company's three main businesses- aviation, health care and power - into separate entities.

The company has also appointed former American Airlines chief executive Thomas Horton as lead director on its board. It's cut the dividend twice since the more recent financial crisis. GE is hoping he will continue the process of shedding non-performing assets and deleveraging the company's balance sheet. "However, we believe that CEO Culp will, at a minimum, re-baseline the company, drive execution and make long-term decisions that benefit the company and shareholders".

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