A Look at Larry Culp’s Career

GE CEO John Flannery

GE CEO John Flannery

"GE remains a fundamentally strong company with great businesses and tremendous talent, " Culp said Monday in a statement.

"A new CEO might not change the facts of the current headwinds, but as we have noted many times, it is hard to refute Larry Culp's track record and accomplishments at Danaher during his tenure". GE will need to take a goodwill impairment charge of almost all the $23 billion in its goodwill balance, according to the company.

While noting that while Culp has work to do, "I wouldn't want to bet against Larry", Davis added.

FILE PHOTO: General Electric Chief Executive Officer John Flannery presents the company's new strategy and financial targets to investors at a meeting in NY, U.S., November 13, 2017.

In addition to announcing the executive shakeup, GE also said on Monday that its power business has been performing worse than anticipated and will not hit its 2018 cash flow and earnings guidance. Horton also joined GE's board this year.

Apple became the first US-based company to reach $1 trillion in valuation in August, according to CNBC.

GE has turned to cost-cutting measures in recent quarters to offset sagging revenues, selling off a light-bulb segment once spearheaded by Thomas Edison and its distributed power business.

Flannery vowed to give GE more of a high-tech and industrial focus by zeroing in on aviation, power and renewable energy - businesses with big growth potential. But investors seemed unimpressed, and the stock kept falling even as USA markets notched records. GE's stock, once considered a blue chip must-own for global investors, is at multi-year lows as it has fallen out of favor with investors. "We see a significant cut to dividend earlier than previously expected". Capital allocation can include decisions like stock buybacks, acquisitions, and research and development spending. We remain committed to strengthening the balance sheet including deleveraging. "However, we believe that CEO Culp will, at a minimum, re-baseline the company, drive execution and make long-term decisions that benefit the company and shareholders".

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