General Electric appoints H. Lawrence Culp Jr as CEO, share price improves

By erptre fusion

General Electric has replaced John Flannery as CEO with former Danaher CEO H. Lawrence Culp Jr, triggering a 7.1% share price increase at close of trading on 1 October

The surprise move, according to CNBC, was prompted by the board’s dissatisfaction with the pace of change and improvement under Flannery.

Flannery’s dismissal was not related to the firm’s Power business issues, CNBC added.

GE said in the firm’s press release:

“While GE’s businesses other than Power are generally performing consistently with previous guidance, due to weaker performance in the GE Power business, the Company will fall short of previously indicated guidance for free cash flow and EPS for 2018.”

See more:

 

The press release went on to say that GE plans to take a non-cash impairment charge related to GE Power worth around US$23bn, stating that the company will elaborate on this matter alongside publication of its Q3 results.

Culp led Danaher as its president and CEO from 2000 to 2014, overseeing market capitalization and revenue growth of over 500% during his tenure and transforming the company “from an industrial manufacturer into a leading science and technology company.”

“GE remains a fundamentally strong company with great businesses and tremendous talent,” Culp said.

“We will be working very hard in the coming weeks to drive superior execution, and we will move with urgency. We remain committed to strengthening the balance sheet including deleveraging. I am excited to get to work.”

Share

Featured Articles

PwC's Kathryn Kaminsky – the role of boards on social issues

As Vice Chair Trust Solutions Co-Leader at PwC, Kathryn Kaminsky says boards play an important role in helping businesses take action on social issues

Why your business needs a Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 top AI and ML trends for the enterprise in 2023 – Dataiku

With 2023 likely to be a huge year for AI, experts from AI platform provider Dataiku deliver their enterprise AI and ML trends for the year ahead

From NYC to Hong Kong, the rise of the private members' club

Leadership & Strategy

Meet the CEO: Jill Stelfox of Panzura, exclusive interview

Leadership & Strategy

The best Michelin-starred restaurants that are meat-free

Sustainability