GE makes a change at the top
Flannery out, Culp in – and Wall St. approves.
General Electric is making a change at the top, naming Lawrence Culp, former head of tech firm Danaher Corp. to replace CEO John Flannery.
Culp, who had been named to GE’s board of directors in April, takes over a shrinking corporate giant, the company announced Monday. In recent years, GE has sold its appliance division, as well as many of its GE Capital assets. Most recently, GE said it would sell its GE Healthcare division and energy company Baker Hughes, which it acquired two years ago. Culp, 55, was president and CEO of Washington, D.C.-based science and tech company Danaher Corp. from 2000 to 2014.
“Larry Culp has a proven track record in company transformation and delivering shareholder value,” Thomas Horton, GE’s lead director, said in a statement. “The board looks forward to working with Larry and his team to return GE to growth and long-term success.”
GE announced its GE Power business would take a $23 billion noncash charge due to its weak performance. GE Power “will fall short of previously indicated guidance for free cash flow and EPS for 2018,” the company said.
GE shares rose 7 percent Monday to close at $12.09. Shares had fallen 39 percent this year and hit a one-year low last week.
In June, GE was removed from the Dow Jones Industrial Average, where it had been a member since 1896.