After just a year as General Electric CEO, John Flannery steps down
GE says it will take a near $23bn charge to write off goodwill in its power division
Bengaluru — General Electric (GE) replaced CEO John Flannery on Monday and said it would take a near $23bn charge to write off goodwill in its power division, primarily from a large acquisition it made in 2015. The firm also said it would fall short of its guidance for free cash flow and earnings per share for 2018 due to weakness in its power business, which analysts had expected. GE shares rose 15% before the opening bell. They had dropped more than half since Flannery became CEO in August 2017. With a market capitalisation below $100bn as of Friday, GE was worth less than a third of its value in 2007. GE’s board unanimously picked H Lawrence Culp Jr, 55, as its new CEO, a seasoned executive known for transforming Washington, DC-based conglomerate Danaher Corporation. He was named to GE’s board in February. Culp was CEO of Danaher from 2000 to 2014. Flannery’s departure underscores the slow pace of his efforts to turn around GE. Despite cutting jobs and shedding businesses, GE’s r...
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