General Electric (NYSE: GM) abruptly removed John Flannery as CEO on Monday and installed Lawrence Culp as his successor and chairman.
GE also said it will take a $23-billion non-cash charge for its power business, adding that it "will fall short of previously indicated guidance for free cash flow and EPS for 2018."
"GE Power's current goodwill balance is approximately $23 billion and the goodwill impairment charge is likely to constitute substantially all of this balance," the release said. "The impairment charge is not yet finalized and remains subject to review."
The stock posted one of its worst weeks of 2018 last week, down 7%, and hit a new nine-year low of $11.21. Concern about a recent gas turbine failure in Texas has hung over GE, with its board of directors meeting Wednesday to discuss how widespread the issue is, according to the Wall Street Journal.
Flannery reportedly reassured employees that the company's engineers have found a solution to the flaw and told staff to "fight for the company," saying media reports overplayed the failure of a turbine blade at the Colorado Bend power plant in Wharton County, Texas.
Flannery was appointed August 2017.
Culp served as CEO and President of Danaher Corporation from 2000 to 2014. During his tenure he led the highly successful transformation of the company from an industrial manufacturer into a leading science and technology company.
Under Culp’s leadership, Danaher executed a disciplined capital allocation approach, including a series of strategic acquisitions and dispositions, a focus on investing for high-impact organic growth and margin expansion, and delivering strong free cash flow to drive long-term shareholder value.
Shares increased $1.51, or 13.4%, to $12.80
