GE shares dive again as investors ignore CEO Larry Culp’s comforting words
The fall underscores collapsing confidence in GE as it grapples with one of its deepest slumps amid weak demand for gas turbines, heavy debt and probes into its accounting
Dallas, US — General Electric (GE) extended a rout after CEO Larry Culp’s attempt to reassure investors fell flat. The shares tumbled as much as 10% Monday despite Culp’s vow to cut GE’s debt levels, in his first public comments since the company spooked investors with its third-quarter earnings report in October. He also said GE would fall short of its sales targets for 2018. “We probably held on, with the benefit of hindsight, held on too long to a too-robust revenue outlook for the year,” he said in a rare interview on Monday with TV channel CNBC. “We’re going to fall short of that.” The stock decline underscored collapsing confidence in GE as the company grapples with one of the deepest slumps in its 126-year history amid weak demand for gas turbines, heavy debt and federal probes into its accounting. The shares have dropped 30% since Culp’s surprise appointment was announced October 1, capping a rout that has wiped out more than $200bn in market value since the end of 2016. GE ...
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