There's little wonder why investors reacted positively to the announcements, despite the profit warning and charge. The 55-year-old Culp was CEO and president of Danaher Corp. from 2000 to 2014.
It's a track record that GE appears to need after a series of notable changes under Flannery failed to gain momentum immediately. Also, GE said that the Board has appointed Thomas W. Horton as the Lead Director of the company.
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.
The company expects to take a non-cash goodwill impairment charge related to the GE Power Business.
"The challenges that GE faces (high leverage; Power's cyclical, structural and operational challenges; etc) are not easily or quickly fixable".
Flannery on the same day said that GE might take the radical step of splitting up the main company's three main components - aviation, health care and power - into separate businesses.
He will be replaced as chairman and CEO by H. Lawrence Culp, Jr.
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Culp is known as a specialist in turning companies around. Culp specifically cited improving GE's balance sheet and reduce its debt load, but acknowledged that he and his team "have a lot of work ahead of us". "Tom and I will work with our board colleagues on opportunities for continued board renewal", he said.
While noting that while Culp has work to do, "I wouldn't want to bet against Larry", Davis added. The board looks forward to working with Larry and his team to return GE to growth and long-term success. But since his appointment in August 2017, GE's business woes have grown and its stock price has sunk to new lows.
General Electric's decision Monday to part ways with CEO John Flannery just one year into his tenure came amid a prolonged stock slide that has seen the one-time industrial juggernaut shed market value roughly equal to that of Facebook.
Flannery replaced Welch successor Immelt, himself pushed out earlier than expected last summer after nearly 16 years at the top. In particular, we're interested infollowing the story surrounding the company's movements with new leadership at the top.
Stop wasting your time!
Moving forward, the CNA Finance team will continue to keep a close eye on GE. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!