Several months after it was kicked out of the DJIA, GE shares have touched their lowest levels since the financial crisis while the rest of the market has surged to fresh record highs. And with the company searching for something, anything, to pull shares out of their more than decade long slump, the board announced the departure of CEO and Chairman John Flannery Monday morning. Flannery, who had led the company for just 10 months after replacing longtime CEO Jeff Immelt, will himself be replaced by board member Lawrence Culp, former CEO of Danager Corp from 2000 to 2014. In addition, Thomas Horton will take over as lead director.
But that wasn’t all: The company issued a “kitchen sink” announcement, disclosing that it would miss its 2018 earnings guidance and would take a massive $23 billion charge in the company’s power business – effectively writing down all of the company’s Goodwill – which has recently been the source of most of the company’s woes. According to CNBC, the board was unsatisfied with Flannery’s “execution” since taking over.
- *GE SAYS WILL FALL SHORT OF 2018 EPS GUIDANCE; TO RECORD CHARGE
- *GE NAMES LAWRENCE CULP CHAIRMAN & CEO
- *GE SAYS WILL FALL SHORT OF 2018 EPS GUIDANCE; TO RECORD CHARGE
- *GE: CHARGE TO BE SUBSTANTIALLY ALL OF GE POWER’S $23B GOODWILL
Shares initially sunk, then snapped higher on the news, rallying 10%:
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