General Electric Co. soared after shocking investors by naming Larry Culp chief executive officer and chairman, as the company ousted John Flannery amid a severe share decline.
Flannery's departure calls into question his plans to reorganize one of America's best-known corporations by selling businesses and cutting costs.
The company said Monday that H. Lawrence Culp Jr. will take over as chairman and CEO immediately.
The company also said its power business had weaker-than-expected results and that its free cash flow and per-share earnings will fall short of its previous guidance for the year.
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.More news: Brett Kavanaugh and accuser to testify at Senate hearing
Mr Flannery had only been in the post since August 2017, when he succeeded Jeff Immelt, who had been in the job for 16 years. Culp previously served as CEO of Danaher Corp. from 2000 to 2014. the company also appointed Thomas Horton, who was American Airlines (AAL) CEO from 2011 to 2013, as lead director.
General Electric said in June it will spin off its healthcare business and divest its stake in oil-services firm Baker Hughes (BHGE.N), effectively breaking up the 126-year-old conglomerate - once the most valuable USA corporation and a global symbol of American business power. 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 remain committed to strengthening the balance sheet". The Dow Jones Industrial Average removed GE from the blue-chip index last June, citing the company's poor performance.
The company has recruited two renowned turnaround experts to replace Mr Flannery. Slimmed-down GE will focus on jet engines, power plants and renewable energy. "We will be working very hard in the coming weeks to drive superior execution, and we will move with urgency", Culp said.