Wednesday, 17 October, 2018

GE shares soar after CEO John Flannery ousted; Larry Culp takes helm

John Flannery’s departure calls into question plans to reorganise GE one of America’s best-known corporations John Flannery’s departure calls into question plans to reorganise GE one of America’s best-known corporations
Steve Townsend | 05 October, 2018, 05:42

Culp, known for turning around Danaher, was added to GE's board in February. GE bosses have typically enjoyed long-term tenures spanning more than a decade.

The stock jump is a sign from Wall Street "that Flannery's leadership was not providing enough value - and that the market expects Culp to be better suited for the top position", said Tim Hubbard, assistant professor of management in the University of Notre Dame's Mendoza College of Business.

The shares climbed 8.2 percent to $12.22 in NY premarket trading Monday.

GE Power "will fall short of previously indicated guidance for free cash flow and EPS for 2018", the company said. GE will need to take a goodwill impairment charge of almost all the $23 billion in its goodwill balance, according to the company.

"It is a privilege to be asked to lead this iconic company", Culp said in a statement Monday.

U.S. urges North Atlantic Treaty Organisation to take action on Russian missile system
Mattis said Tuesday that he will discuss the Russian missile system at the North Atlantic Treaty Organisation meeting this week. Russian Federation firmly denies these accusations and says that the missile in question is allowed under the agreement.


The ouster of John Flannery gave GE its third chief executive in about 14 months.

"GE remains a fundamentally strong company with great businesses and tremendous talent", said Culp. The stock had been down more than 30% this year as of market close Friday. The growth of wind and solar plants has cut into global demand for thermal plants; as one of the world's largest manufacturers and servicers of turbines for electrical generation, GE has been hard hit by that trend. GE had fallen 35 percent this year through September 28, following a 45 per cent decline in 2017. It was replaced by the parent company of the Walgreens pharmacy chain. Flannery took on the job in August 2017. Immelt took over from Welch two days before the terrorist attacks in NY and Washington on September 11, 2001.

The board's move comes in a little more than a year after it appointed Flannery as GE's chief executive. Currently, the goodwill balance of GE Power is about $23 million. The company also shrank its board and pushed out a raft of directors who served under Immelt. Flannery said he expected the power business to "remain weak through 2020." The company has been forced to sell off divisions and lay off employees, a process that accelerated under Flannery. But investors seemed unimpressed, and the stock kept falling even as US markets notched records.

GE, an original member of the Dow since 1896, was dropped from the index last summer. Flannery announced his resignation today.

"With Larry what GE shareholders get is an outsider who will likely strip corporate back to necessary functions and tear down all the fiefdoms that prior management (Immelt) had built up", he wrote. In the release, the company said that the change in management will be effective immediately. GE cut its payout in half in late 2017. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Capital allocation can include decisions like stock buybacks, acquisitions, and research and development spending.

Recommended

  • In the Solar system found a new planet

    In the Solar system found a new planet

    For context, Pluto is around 34 AU, so 2015 TG387 is about two and a half times further away from the Sun than Pluto is right now. Instead, astronomers refer to its orbit in astronomical units, or AU, where 1 AU is the distance between the sun and Earth.

    Tesla CEO Elon Musk taunts SEC days after fraud settlement

    The SEC declined to comment about the latest tweet, and a spokesperson for Tesla was not immediately available for comment. Musk's Twitter account tweeted, "Just want to [sic] that the Shortseller Enrichment Commission is doing incredible work.
    Music, dance as Mrs. Trump arrives in Ghana on Africa trip

    Music, dance as Mrs. Trump arrives in Ghana on Africa trip

    The First Lady will use the opportunity of her visit to cast a positive light on her embattled husband's administration. Several Ghanaians interviewed said they knew little about it. "I don't think I have ever heard her name, Melania".
  • Cubs' Russell banned 40 games for domestic violence

    Cubs' Russell banned 40 games for domestic violence

    MLB's action includes participation in "a confidential and comprehensive evaluation and treatment program". Major League Baseball commissioner Rob Manfred announced the suspension in a statement issued Wednesday.
    Amy Schumer Detained at Kavanaugh Protest in D.C.

    Amy Schumer Detained at Kavanaugh Protest in D.C.

    Schumer's representatives did not immediately respond to a request for comment, and the Capitol Police could not be reached. Dunham, the creator of "Girls", seemed pleased with the turnout: "So many women I love are in DC today", she tweeted .
    Indian Rupee breaches 73 mark, plunges to fresh all-time low

    Indian Rupee breaches 73 mark, plunges to fresh all-time low

    On Thursday, the USA dollar touched 1.3828 against the Singapore dollar, its highest since Jul 11 a year ago . The Indian rupee on Thursday slumped further to an all-time low of 73.77 against the USA dollar.
  • LG Unveils V40 ThinQ Smartphone With Five Cameras

    LG Unveils V40 ThinQ Smartphone With Five Cameras

    Qualcomm's flagship octa-core processor , the Snapdragon 845 clocked at 2.7GHz, and Adreno 630 GPU powers the LG V40 ThinQ . The V40 ThinQ is also created to withstand dust and water according to IP68 standards as well as MIL-ST-810G certification.
    Mexico-Canada Trade Agreement Targets China’s Bad Practices

    Mexico-Canada Trade Agreement Targets China’s Bad Practices

    Automobile manufacturing: Under USMCA, to be free from tariffs, a larger part of a vehicle's parts will be made in North America. The deal reportedly grants U.S. farmers access to the heavily protected dairy market . -Canada trade.
    Jimmy Kimmel turns Trump’s nationwide text into a Hollywood blockbuster

    Jimmy Kimmel turns Trump’s nationwide text into a Hollywood blockbuster

    Before making an educated decision, Stormy asked for a small request. "Can you hold it up so it's coming at me at the correct angle?", asked Daniels.
  • WCHN, MSK partner in breast cancer clinical trials

    WCHN, MSK partner in breast cancer clinical trials

    He cited that despite these numbers, breast cancer belongs to the 30 percent of cancers that can be cured when detected early. For example, mammograms can find 85 percent of cancers in fatty breasts but only 68 percent of cancers in very dense breasts.
    Former rap mogul Suge Knight set to be sentenced

    Former rap mogul Suge Knight set to be sentenced

    Knight, the co-founder of Death Row records , cycled through more than a dozen attorneys on the road to his sentencing hearing. Sloan had worked as an adviser on the film, which portrayed Knight in his early days as the co-founder of Death Row Records .
    Rio Ferdinand's description of Lionel Messi after Tottenham masterclass was ideal

    Rio Ferdinand's description of Lionel Messi after Tottenham masterclass was ideal

    Instead of being 4-0 down, however, Tottenham striker Kane halved the deficit in the 52nd minute with a clinical finish. We were handicapped against Barcelona after conceding after one minute.

India vs West Indies | Prithvi Shaw scores century in Test debut India vs West Indies | Prithvi Shaw scores century in Test debut Roach will be absent as he has flown back to attend a family issue and the lack of top-quality spinners is a cause for concern. The others who have played on the Indian soil are Devendra Bishoo, Kraigg Brathwaite, Kieran Powell and Shannon Gabriel.

Who Talked To The FBI In The Kavanaugh Case - And Who Didn't? Who Talked To The FBI In The Kavanaugh Case - And Who Didn't? As Trump continues to tweet in support of Kavanaugh and mock Ford and her testimony, the cover is making waves on social media. Three women have accused Kavanaugh of sexual misconduct decades ago, allegations he has strongly and emotionally denied.

US charges 7 Russians in hacking indictment; Britain blames GRU The head of Russia's Foreign Affairs Committee Konstantin Kosachev denied the allegations in a statement on his Facebook page . Russian Federation has consistently denied any involvement in the Skripal chemical attack and the shooting down of MH17.

Melania Trump spotlights USAID reading program in Malawi Trump opened her first extended global tour as first lady on Tuesday in the West African nation of Ghana. "It was very exciting". The US First Lady will then visit the US Embassy in Nairobi wrapping up the only closed-door engagements on her Kenyan visit.

Emergency Alert To Hit Cell Phones This Afternoon Emergency Alert To Hit Cell Phones This Afternoon What Can I Expect Today? The test was mandated under a 2015 law that said one must be run at least once every three years. While users may opt out of alerts for weather or missing children, any "presidential" alert cannot be opt-ed out of.

Ronaldo left out of Portugal's upcoming worldwide matches Ronaldo left out of Portugal's upcoming worldwide  matches The story came back to light after German magazine Der Spiegel published an interview with Mayorga on September 29. The documents claim Ronaldo confirmed the pair had sex, but said it was consensual, the paper reported.

Apple, Amazon deny Bloomberg report claiming cyber attack by Chinese spies Apple, Amazon deny Bloomberg report claiming cyber attack by Chinese spies Supermicro said it was unaware of an investigation, while USA investigators, including the FBI, declined to comment. Apple, AWS, Super Micro , and China's Ministry for foreign affairs have all vehemently denied the report .

Google just confirmed to launch Pixel Mini on October 9 Google just confirmed to launch Pixel Mini on October 9 If Google is indeed working on a cheaper Pixel, going for a smaller form factor is definitely a smart move. We now know the new release is arriving on October 9 , as Google has teased an event on that date.

Venom: What the critics are saying Venom: What the critics are saying The Verge 's Bryan Bishop wrote that the British actor gave a fully fleshed-out, "capital-P performance" Venom . But just before that deal went through, in 1997, a Venom movie was actually being developed at New Line Cinema.

Yale classmate accuses Kavanaugh of ‘blatant mischaracterization’ of his drinking at college Yale classmate accuses Kavanaugh of ‘blatant mischaracterization’ of his drinking at college The police report does not state that Kavanaugh initiated a fight, was engaged in a fight, or threw beer during a bar altercation. Sams, a lawyer in Atlanta who was a fraternity brother of Kavanaugh and Dudley, said he does not remember seeing Kavanaugh there.

Hackers Are Already Adding NES Games to Nintendo Switch Online Hackers Are Already Adding NES Games to Nintendo Switch Online Depending on the game, players can engage in online competitive or co-op multiplayer, or take turns controlling the action. An Internet connection is still required to use online features or games which require a subscription service.

As 10 States Follow Centre In Slashing Fuel Prices, Kerala Refuses As 10 States Follow Centre In Slashing Fuel Prices, Kerala Refuses Jaitley said that the new excise duty will come immediately into effect once it has been officially notified by the OMCs. He said that the central government will reduce excise duty by Rs 1.5 while oil companies will absorb the remainder.

LTE speed tests show the iPhone XS dominates the iPhone X LTE speed tests show the iPhone XS dominates the iPhone X For real-world results, we used the week of September 24, 2018 from Ookla's massive crowdsourced Speedtest Intelligence database. Unlike other speed tests, the Phone Buff style is conducted using a specialized machine to ensure there's no margin of error.

NewsJose Mourinho uninterested at latest Paul Scholes comments NewsJose Mourinho uninterested at latest Paul Scholes comments Mourinho is understood to have no plans to step down despite a worrying run of form, but has expressed concerns privately that he is not receiving...

Hundreds of prisoners escape during deadly quake & tsunami in Indonesia Hundreds of prisoners escape during deadly quake & tsunami in Indonesia Many are still trapped in Sigi and the hard-hit area of Balaroa and authorities expect the death toll to significantly rise. Mass graves have been dug to bury the victims even as the desperate search for survivors continues.