Most popular to fire CEO and reduce goodwill by $2

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After the sudden dismissal of the CEO and a one-time write down of $23billion in goodwill, Ge unexpectedly announced a change of command, while admitting that the power business dragged down the company's annual profits less than previously expected. General Electric shares rose on Monday as investors expected the new leader

on Monday, October 1, US Eastern time, GE announced that Ren needed a standard block to calibrate the hardness tester before measurement, and appointed Lawrence Culp, the company's director and former Danaher Corp CEO, as the company's CEO and chairman, to replace John Flannery, who has only served for 14 months

at the same time, GE said that due to the weakness of the power business, although other businesses were in line with the company's previous expectations, this year's cash flow and EPS would still be lower than the company's performance guidelines. Also due to the power business, Ge expects to write down the goodwill related to this business at one time. At present, the book goodwill of the power business is about US $23billion, and the scale of this write down may cover the book value of most of the goodwill. When the third quarter financial report is released, the company will clarify the specific impairment and make comments

after the announcement of the above CEO replacement and goodwill impairment decisions, before Monday's trading, GE's share price rose as much as 15%, rose more than 15% at the opening, rose nearly 16% at the beginning of the trading, and finally closed up 7.09%. But as of last Friday, GE's share price has fallen nearly 40% this year

culp led Danaher Corp, an industrial giant, to achieve a successful transformation from 2000 to 2014, resulting in a 454% rise in the company's share price over the past 14 years. In the same period, the share price of General Electric fell 47% and the Dow rose 66%. This outstanding record also made him highly praised by the general board of directors

"Ge is still a powerful company with excellent business and huge talents. It is an honor to be invited to lead this iconic company," Culp said in a statement. "We will take urgent action on Relevant Issues in the next few weeks."

in addition, the company appointed Thomas Horton, former CEO of the airline, as an independent director on Monday. Thomas rton, 57, was the chairman and CEO of American Airlines from 2011 to 2013, and the chairman of American Airlines Group from 2013 to 2014. During his tenure, he also successfully led a series of strategic restructuring of the airline

in addition to in-depth understanding of the aviation industry, Horton's experience as CFO of American Airlines and at&t also brings strong financial skills and corporate governance experience to the board of directors

it is worth noting that since April today, both Culp and Horton have become members of the board of directors. Before Flannery, there were only five CEOs in GE's 59 year history. Flannery became the shortest CEO in the company's history. His predecessor Immelt served for 16 years and took charge of the company for 20 years

failed to reverse the decline Flannery GE's most "short-lived" CEO has been in the midst of bad transactions and unnecessary complexity for many years. In order to repay the debt and boost the stock price, GM has sold countless business branches, including its 100 year old railway department business, Thomas Edison's bulb business, Baker Hughes, a global oil development and processing enterprise, and manufacturing amplifiers responsible for the range conversion, data collection, data transmission The medical department of universal experimental machine mode selection and liquid crystal display nuclear magnetic resonance imaging equipment

since taking over, the board of directors has been dissatisfied with the operation performance of Flannery. This personnel change is also due to the "change" led by Flannery, which is too slow and has little effect

flannery had promised to transform Ge into a more capable company by cutting jobs and several businesses. However, since he took office, General Electric has fallen sharply several times, and investors are worried that it will increase instead of decrease

on November 13 last year, Flannery announced the transformation plan, recognizing that the new operating revenue recognition provisions of the CSRC would reduce GE's revenue by $1.4 billion and its operating profit by $2.1 billion last year. On the same day, Ge shares fell 7.2%, the largest one-day decline in the eighth half of the year

on January 17 this year, General Electric announced that there was a $6.2 billion after tax charge for its business in the fourth quarter of last year, and a $15billion reserve will be withdrawn. Flannery admitted at the meeting that he was "deeply disappointed" by the large scale of reinsurance investment fees left by the company, saying that the company underestimated the risk of book value. In the following five trading days, GE's share price fell by 15%, the largest five-day decline in nine years

the second quarter financial report released in July this year showed that the company's profit fell by 28% year-on-year, and the downturn in the power business offset the growth in the aviation and healthcare business. Flannery later said, "the biggest challenge we face is still to turn our power business around." On the day of the announcement, Ge fell 4%

as mentioned earlier, S3 analytics shows that after being kicked out, General Electric (GE) has become the third largest industrial company shorting after Toshiba and 3M (MMM), otherwise it will also affect the cement strength results. In the past month, GE's open short positions increased by 10% to US $1.36 billion, and short shares increased by 23% to 119.1 million shares. Last week, GE's share price hit its lowest level since the financial crisis

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(: Ma Jinlu hf120)

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