GE CEO Flannery Removed as Losses Increase

Former General Electric chairman and CEO John Flannery

Former General Electric chairman and CEO John Flannery

General Electric CEO John Flannery is seen at the company's office in New York City, U.S., June 26, 2018.

"GE still has too much debt and plenty to fix, but at least we have an outsider with an accelerated mandate to fix it", said Scott Davis, founding partner of Melius Research, in a note to investors where he compared GE's recent history to a slow but fatal train wreck. More than 90 percent of the transactions Culp oversaw at Danaher were company takeovers, according to data compiled by Bloomberg.

Culp's time as CEO of Danaher was marked by expanding the reach of the company into fields as diverse as dental imaging and water filtration. GE will need to take a goodwill impairment charge of almost all the $23 billion in its goodwill balance, according to the company.

Mr Culp said: "GE remains a fundamentally strong company with great businesses and tremendous talent".

Horton said he's looking forward to revitalizing GE as a company with growth and long-term success. He's already a member of GE's board. "I am excited to get to work".

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.

GE shares were trading at $12.60 shortly before 10.00am Eastern on Monday.

That same day, Flannery said GE might take the radical step of splitting up the main company's three main businesses- aviation, health care and power - into separate entities. Culp previously served as CEO of Danaher Corp. from 2000 to 2014. the company also appointed Thomas Horton, who was American Airlines (AAL) CEO from 2011 to 2013, as lead director.

Mr Flannery had been in the role for less than two years. That could include changing the dividend policy and how GE allocates capital. Now (7:57), GE is trading at $12.87 per share after a gain of $1.58 per share or 13.99% thus far today! 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 de-leveraging'.

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