Wednesday, 17 October, 2018


General Electric CEO John Flannery is out

Regime Change at GE Flannery Out After a Year as CEO GE shares soar after CEO John Flannery ousted; Larry Culp takes helm
Patty Aguilar | 03 October, 2018, 22:44

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

The company's stock was up more than 15 percent in pre-market trading in NY shortly before 1300 GMT.

Flannery announced a plan to transform GE in November 2017 shortly after replacing Jeff Immelt but the company's struggles continued under his watch, with the stock price diving more than 50%.

Last week, shares in the company fell seven percent, pushing GE's market capitalization below $100 billion and causing Wall Street analysts to cut their price targets. Culp and Horton have been members of the board since April 2018.

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

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 past year.

GE is scheduled to report earnings October 25th before the market opens. The company has been forced to sell off divisions and lay off employees, a process that accelerated under Flannery.

General Electric CEO Jeffrey Immelt (centre), senior vice president John Flannery and Clara Gaymard (left), head of GE France, leave after a meeting at the Elysee Palace in Paris May 28, 2014.

At The Deal's 2018 Corporate Governance Conference in June, activist investor Peltz, whose Trian Fund has a seat on GE's board, was asked about Culp's prospects.

Culp is known as a specialist in turning companies around. "We will move with urgency".

GE, like many multinational companies, is also navigating the US-China trade war.

The company's power business, hit by problems with its latest generation of gas turbines, posted a US$10 billion loss a year ago.

The sell-off accelerated last month after GE said that two of its gas turbines failed, forcing the closure of power plants.

"He's an outsider and maybe it's going to take an outsider to come in and fix this thing", said Scott Davis, an analyst with Melius Research. "GE is bloated and its culture is destroyed". That will leave it focused on areas such as jet engines, power plants and renewable energy. Its close touched a nine-year low "as recently as last Tuesday, while the Dow Jones Industrial Average has rallied 20.5 percent", noted the market news site. "However, these problems were not created under 1/8Flannery's 3/8 tenure", CFRA analyst Jim Corridore said in a note.

"Uncertainty regarding near-term EPS and capital structure profile offsets long-term upside from turnaround under new CEO Larry Culp".

GE will also book a $23 billion non-cash charge related to its power business.

GE's long stock slide means the once-largest USA industrial company is now only sixth in terms of market capitalization, behind Boeing Co, 3M Co, Honeywell International Inc, United Technologies Corp and others.

Recommended

loading...
...
  • Napoli coach Ancelotti speaks about Salah ahead of Liverpool clash

    Napoli coach Ancelotti speaks about Salah ahead of Liverpool clash

    Liverpool have scored 50 in their last 16 Champions League matches, finding the net at least twice in 10 off their last 12. We definitely can't play the way we did in that game, but obviously it will be completely different tomorrow.
    Web Founder Charts a Solid Future for the Internet

    Web Founder Charts a Solid Future for the Internet

    Inrupt will lay the infrastructure that will allow Solid to thrive. "I've always believed the web is for everyone". Sir Tim is taking a sabbatical from MIT and is planning to seek venture funding for the project in the autumn.
    Ansel Elgort Will Play Tony In Steven Spielberg's 'West Side Story'

    Ansel Elgort Will Play Tony In Steven Spielberg's 'West Side Story'

    West Side Story parallels the story of Romeo and Juliet in 1950s NY , featuring white and Puerto Rican rival gangs. It's no secret that Steven Spielberg has been quietly working on bringing West Side Story back to the big screen.
  • Jose Mourinho shows restraint as Manchester United’s poor form continues

    Jose Mourinho shows restraint as Manchester United’s poor form continues

    Paul Pogba has revealed he was not allowed to talk after Manchester United's 0-0 stalemate against Valencia on Tuesday night. The departure time from the Lowry Hotel was his decision and it was the same for every Champions League home fixture.
    Charles Aznavour, the French Frank Sinatra, is dead at 94

    Charles Aznavour, the French Frank Sinatra, is dead at 94

    Until the end of his life, Aznavour continued performing worldwide and his dream was to perform on stage on his 100 birthday. Aznavour's well-known hits included " She ", "Hier Encore", "Emmenez-moi", "For me, Formidable", and "La Bohème".
    Amazon Introduces New Fire TV Stick 4K, Alexa Voice Remote

    Amazon Introduces New Fire TV Stick 4K, Alexa Voice Remote

    The device can be pre-ordered effective immediately for$49.99, and will ship in the USA and Canada at the end of the month. To work with the latter, Amazon has added a volume rocker, a mute button and a power button.
  • Thai beach closes indefinitely to recover from tourism

    Thai beach closes indefinitely to recover from tourism

    Tourists who already booked tour packages to visit the bay during dates after the closure would not be able to enter the area. Reportedly it will take years for the coral reef to recover as it only grows around half a centimetre each year.
    Nobel Prize for Physics goes to US, Canadian scientists

    Nobel Prize for Physics goes to US, Canadian scientists

    Dr Ashkin, on the other hand, came up with a laser technique known as optical tweezers that is used to study biological systems. Their invented technique - called chirped pulse amplification or CPA - became the standard for subsequent high-intensity lasers.

    Flake calls Trump's comments on Ford 'appalling'

    McConnell is expected to lead the efforts to whip support for Kavanaugh, along with senators who are close to the key swing votes. It was not immediately clear if Kavanaugh dropped out due to anticipation that he would be serving on the Supreme Court .
  • Pompeo says United States  canceling 1955 Treaty of Amity with Iran

    Pompeo says United States canceling 1955 Treaty of Amity with Iran

    The 2015 accord saw the Islamic Republic limit its controversial nuclear activities in return for relief from global sanctions. Iranian President Hassan Rouhani praised Europe on Wednesday for maintaining business with Iran after the USA withdrawal.
    UT Austin graduate wins Nobel Prize for breakthrough cancer treatment

    UT Austin graduate wins Nobel Prize for breakthrough cancer treatment

    The discovery led to effective treatments, specifically some called immune checkpoint blockade therapies . Honjo said he hopes to keep working on the research in an effort to save more cancer patients.
    Glowing Catherine debuts chic new style on first visit since maternity leave

    Glowing Catherine debuts chic new style on first visit since maternity leave

    She wore a brown jacket and carried a bag in a matching colour, topping off the look with a similarly coloured trilby. Today is Kate's first solo appearance since she started maternity leave after the birth of Prince Louis .

Theresa May dances to 'Dancing Queen' to open her conference speech Theresa May dances to 'Dancing Queen' to open her conference speech Her speech was aimed at providing an upbeat vision for Britain post-Brexit - and after eight years of austerity. If May was hoping her on-stage moves would put an end to the robot jokes, she was sadly mistaken.

McConnell says senators will get Federal Bureau of Investigation report on Kavanaugh "I really don't know - it could have come from the community as well", she said, "If I knew I would tell you". Conway, as Trump did Tuesday night, highlighted Ford's "memory lapses" and "factual inconsistencies".

Steve Bruce sacked as Aston Villa manager day after cabbage protest Steve Bruce sacked as Aston Villa manager day after cabbage protest The club added that Bruce's assistants Colin Calderwood, Steve Agnew, Stephen Clemence and Gary Walsh were also departing.

Meghan Markle Finds a Piece of Her Old Life in Sussex Meghan Markle couldn't contain her laughter as she was presented with a fabulous gift during her tour of Sussex on Wednesday. The Duke and Duchess of Sussex are making their first joint official visit to the county that inspired their royal titles .

Iran fires missiles at Syria militants over parade attack Iran fires missiles at Syria militants over parade attack Iranian officials initially blamed Arab separatists backed by Gulf Arab allies of the United States for the attack. The Iranian state television aired a clipping, in which one of its reporters witnessed the launching of missiles.

France Says No Doubt Iran Behind Foiled Bomb Plot, Seizes Assets France Says No Doubt Iran Behind Foiled Bomb Plot, Seizes Assets The incident was a plot "designed by those who want to damage Iran's long-established relations with France and Europe ", he said. A German court said on October 1 it had approved Assadi's extradition to Belgium, where he is accused of masterminding the plot.

First Trailer for Adam McKay's 'Vice' Starring Christian Bale as Cheney First Trailer for Adam McKay's 'Vice' Starring Christian Bale as Cheney At first, Bale's Cheney seems hesitant to accept the position; however, he then agrees to fulfill the role under a few conditions. Annapurna Pictures has scheduled the film's wide theatrical release for Christmas Day .

Britain's Theresa May calls party to unite on Brexit Britain's Theresa May calls party to unite on Brexit So that for the first time in decades, this country will control and choose who we want to come here. Labour Leader Jeremy Corbyn, she said, would "outsource our conscience to the Kremlin".

Melania Trump arrives in Malawi Thursday, First Lady returns to welcome her Melania Trump arrives in Malawi Thursday, First Lady returns to welcome her No one knew who the message was intended for, leaving it - and her - up for interpretation. The only issue is that most people in Africa are still waiting to get cyber.

Senators Spar Over FBI Probe of Kavanaugh, Trump Mocks His Accuser Ernst said Tuesday no information has come forward until now to prevent her from voting for Kavanaugh's confirmation. But he said the nomination would be over if it was revealed Kavanaugh had lied to the committee in his testimony.

Shell, Partners Approve $31 Billion Project to Speed Gas to Asia Shell, Partners Approve $31 Billion Project to Speed Gas to Asia Liquefied natural gas is gas that has been compressed to be transported. This is compared to the 20 days it takes from the US Gulf. "Mr.

Wife of Malaysian ex-PM arrested in graft case Wife of Malaysian ex-PM arrested in graft case She is expected to spend the night at the MACC headquarters located in the administrative capital Putrajaya outside Kuala Lumpur. On Sept 26, Rosmah was called in for a second round of questioning - this time on 1MDB - which lasted nearly 13 hours.

Former Texas Tech quarterback Patrick Mahomes completes insane left-handed pass Former Texas Tech quarterback Patrick Mahomes completes insane  left-handed pass Of Mahomes' left-handed pass on Monday, Hill said , "I've never seen a quarterback who is right-handed throw the ball left-handed. They've played three games on the road, and two of those wins have come against division opponents.

Krishna Raj Kapoor prayer meet details Krishna Raj Kapoor prayer meet details Neetu Kapoor and son Ranbir are reportedly in the United States , where Rishi Kapoor is now undergoing medical treatment . Her sudden demise took everyone by shock and the entire Bollywood turned up to offer condolences to the bereaved family.

Russia Says It Delivered Advanced Missile Defense System To Syria Despite Objections Russia Says It Delivered Advanced Missile Defense System To Syria Despite Objections Russia chose to supply the system after Moscow accused Israel of indirectly causing the downing of a Russian military jet near Syria in September.