A Look at Larry Culp’s Career

Eileen GuzmanOct 02, 2018

General Electric has booted out its chairman and chief executive, John Flannery, after a little more a year on the job, amid declining profits and cash-flow problems.

GE Power's current goodwill balance is about $23 billion and the goodwill impairment charge is likely to constitute substantially all of this balance, the company said.

GE shares are up more than 10% on the news.

The profit disappointment and massive accounting writedown are just the latest in a long line of misses dating back to the leadership of Jeff Immelt, who led GE between 2001 and June of previous year.

In hiring Mr. Culp, 55 years old, GE brought in a leader who ran what some investors saw as a model industrial conglomerate.

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

"GE remains a fundamentally strong company with great businesses and tremendous talent", H. Lawrence Culp, the company's new CEO, said in a statement. The operation has struggled with a downturn in the gas-turbine market.

Stock prices have decreased by more than half since Flannery took the top job in August of 2017, and with the news of his departure, GE's shares rose 15 percent before the opening bell on Monday.

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.

"Given the amount of portfolio change at the company and the prospect for further shifts in light of this news, one drawback is that shareholders do not know exactly what they will be owning in a year or two, but this factor has not stopped investors from trusting in portfolio changes at DHR and FTV".

GE, however, has not seen such gains, particularly when it comes to its power business which was hit by problems with its latest generation of gas turbines and posted a $10 billion loss a year ago.

Culp, who joined GE's board of directors in April of 2018, was the former CEO of Danaher Corp from 2000-2014. That will leave it focused on areas such as jet engines, power plants and renewable energy. Its value slipped below $100 billion even as Flannery announced a breakup. "We will be working very hard in the coming weeks to drive superior execution, and we will move with urgency", Culp said.

Related Articles:



« Previous article
Next article »


Popular Pages

Trump claims Dems are using Kavanaugh investigation to 'obstruct and delay'
Both Grassley's office and the committee did not immediately respond to CNN's request for comment. Ford also has said Judge was in the room when a drunken Kavanaugh sexually assaulted her.

Neville says Mourinho not to blame for United mess
Meanwhile, Alexis Sanchez's future at Manchester United is also said to be in serious doubt. I see upset people, some people that don't look like they lost a game, I see 'so-so'.

NL Central tiebreaker game set for Monday
Josh Hader did just that, striking out three and allowing just a two-out hit by Javy Baez in the ninth. And don't count out Brewers first baseman Jesús Aguilar, who has 35 home runs.

Sabalenka to face Kontaveit for Wuhan title
Barty is now 5-1 in quarterfinals matches this year, her only loss coming at Eastbourne to eventual champion Caroline Wozniacki . Wang won the first two games of the match but the clinical Kontaveit won the next six games in a row to take the first set.

Seahawks' Thomas carted off field vs. Cards
Thomas had been in a contract dispute with the Seahawks as they were unwilling to sign him to a long-term deal. He is in the final year of a contract that includes an $8.5 million salary.

Jerry Brown net neutrality law sparks lawsuit from feds
The Department of Justice on Sunday night sued California over its new new neutrality law. California fought Trump and Sessions on their immigration lawsuit.

Raj Kapoor's wife Krishna dies
Everyone was very close to her and she has been often credited for keeping the family together. Deepest condolences to the Kapoor and Nanda family on the passing of #KrishnaRajKapoor.

Kavanaugh wrongly claims he could drink legally in Maryland
Tim Walz, the DFL candidate for governor, tweeted on Friday that Klobuchar has "been a beacon of truth, justice, and rationality. The Minnesota Democrat added that her experience comes from having an alcoholic father who, at 90, is in Alcoholics Anonymous.

Iran fires missiles at militants in Syria over parade attack
After that assault, the Guards said they had fired missiles into Syria that had successfully hit IS targets. Both the Islamic State group and an Arab separatist group have claimed the assault .

Dybala stars in Juve win
But it was not to be as midfielder Paulo Dybala scored the first in the 11th minute to put Max Allegri's side ahead. The Old Lady won 2-0 over Bologna, with Dybala opening the scoring, before Ronaldo assisted Matuidi's strike.