GE's CEO Steps Down, Shares Jump 15%

Monday, October 1, 2018

General Electric Co Chief Executive Officer John Flannery abruptly stepped down on Monday just over a year after taking the role, and the company announced a $23 billion charge related to its struggling power business.

Flannery's departure calls into question plans to reorganize one of America's best-known corporations. He had promised to revamp GE into a leaner company by cutting jobs and shedding several businesses.

The company's shares rose 15 percent before the opening bell. The stock has more than halved since Flannery took the top job in August last year.

Flannery's departure from GE is driven by "slow pace of change" under his leadership, CNBC reported, citing a text from a source.

Flannery will be replaced by H. Lawrence Culp Jr., who had the unanimous support of the board, the company said.

Culp, known for turning around Danaher, was added to GE's board in February.

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

The company said it would fall short of its previously indicated guidance for free cash flow and earnings per share for 2018 due to weakness in its power business.

GE Power's current goodwill balance is about $23 billion and the goodwill impairment charge is likely to constitute substantially all of this balance, the company said.


(Reporting by Arunima Banerjee and Sweta Singh; Editing by Saumyadeb Chakrabarty)

Categories: People & Company News

Related Stories

Floating Wind and the Taming of Subsea Spaghetti

MCDermott Gets Pipelines and Cables Job at Qatar's Giant Gas Field

Chinese Demand Spurs Global Wind Turbine Ordering

Shelf Drilling to Consolidate Jack-Up Fleet and Resolve Funding Gaps via Triangular Merger

Saipem Nets $4B for Work at Qatar’s Giant Gas Field

ADNOC Signs 15-Year LNG Supply Deal with Indian Oil

Indonesia Green Lights Eni Gas Projects

Equinor Pulls Out of Vietnam's Offshore Wind Industry

"World's Most Powerful Floating Wind Turbine" Sets Sail

Shelf Drilling Sells Baltic Jack-Up Rig

Current News

Blackford Dolphin Kicks Off Long-Term Drilling Campaign Offshore India

India Defends Propping Up Russian Oil - Prices "would have hit the roof"

Valeura Energy Consolidates Thai Oil and Gas Assets

TotalEnergies Inks 15-Year LNG Supply Deal with China’s Sinopec

Shelf Drilling Secures $200M Contract Extensions with Chevron for Thailand Ops

Floating Wind and the Taming of Subsea Spaghetti

Impending Shortage of Jackups within Ageing Asia Pacific Fleet

Equinor Tries Again for a Japan Offshore Wind Lease

Yinson Production Concludes Minority Stake Sale in FPSO Anna Nery

Sunda Energy Pushes Back Chuditch-2 Appraisal Well Drilling Date

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com