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.
Its shares are up 15% in Monday pre-market at $13.00 as the conglomerate dumped John Flannery as its chief executive, after just over a year in the job. Since Flannery took the CEO reins from Jeffrey Immelt on August 1, 2017, its shares have plunged 55.6 percent through Friday, according to MarketWatch.
However, as Flannery has restructured the multinational conglomerate, its value has dipped below $100 billion and shares are down more than 35% this year.
Flannery spent more than 30 years at GE.
Culp, who served as CEO and president of manufacturing company Danaher Corporation from 2000 to 2014, may "inspire confidence in turn-around potential", UBS analyst Steven Winoker wrote in a note.
Deal volume topped US$22 billion during Culp's 14 years at the head of the company, with his biggest move being the 2011 acquisition of diagnostic-equipment maker Beckman Coulter Inc. for US$6.8 billion.
The broad strategies are likely to be similar because the plan laid out by Flannery was made in conjunction with heavy involvement from the board, which included Culp, said Gabelli & Co analyst Justin Bergner. We have a lot of work ahead of us to unlock the value of GE.Читайте также: Theresa May rallies fractured Tories around an unpopular Brexit plan
General Electric Chairman & CEO John Flannery is interviewed on the floor of the New York Stock Exchange in June. Flannery's time as CEO has been filled with challenges and the company has sold off several businesses in an effort to right the ship. Wall Street analysts applauded the move, but noted that GE's troubles are not "easily or quickly fixable".
GE has lost roughly $US500 billion in market value since August 2000, including a almost 30% hit to its stock price this year alone. It's been selling off assets and trying to sharpen its focus since the recession, when it's finance division was hammered.
"I think we've been quite clear about where we have underperformed and how we fix that".
GE's businesses other than Power are "generally performing consistently with previous guidance", GE said in a statement Monday. The shift is historic for a company that defined the phrase "household name".
GE has been dogged by problems at its power division, which makes machinery for power plants and has struggled amid tepid demand.
GE shares jumped as much as 16 percent, but later pared some of the gains to trade up 9.5 percent at 11:30 a.m.in NY.
Massachusetts Gov. Charlie Baker, who helped lure GE to Boston from CT in 2016 with incentives like state grants and property tax relief, said he's not too concerned about GE's latest travails.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.