General Electric Co. announced on Monday that CEO and chairman John Flannery was out and would be replaced by former Danaher Corp. CEO Larry Culp, who was added to the board earlier this year. Flannery did deliver an aggressive breakup plan that included a spinoff of GE’s health-care business, a divestiture of its Baker Hughes energy assets and a further shrinking of GE Capital. Flannery rolled out 2018 EPS guidance for $1 to $1.07 a share at a November investor day that was meant to unveil a new direction and was widely regarded as a flop. In conjunction with the succession announcement on Monday, GE said that the company will fall short of its 2018 cash-flow and EPS guidance. GE also on Monday said it would take a non-cash goodwill impairment charge that was likely to constitute substantially all of GE Power’s current $23 billion goodwill balance.

Source: Washington Post October 01, 2018 13:07 UTC