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| GE chief executive departs amid profit warning | GE chief executive departs amid profit warning |
| (about 5 hours later) | |
| General Electric has ousted its chief executive, installing new leadership for the second time in two years as it struggles to return to growth. | General Electric has ousted its chief executive, installing new leadership for the second time in two years as it struggles to return to growth. |
| Larry Culp, a GE board member who ran US manufacturer Danaher for more than a decade, is to replace GE veteran John Flannery, effective immediately. | Larry Culp, a GE board member who ran US manufacturer Danaher for more than a decade, is to replace GE veteran John Flannery, effective immediately. |
| Shares surged almost 10% on the news, although the firm also warned it would fall short of its profit forecasts. | |
| Mr Flannery had been in the role for less than two years. | Mr Flannery had been in the role for less than two years. |
| He took over from veteran chief executive Jeff Immelt, who had led the US industrial giant since 2001. | He took over from veteran chief executive Jeff Immelt, who had led the US industrial giant since 2001. |
| Last year, Mr Flannery announced a turnaround plan aimed at simplifying the business model of the conglomerate, which had grown to encompass everything from light bulbs to loans. | Last year, Mr Flannery announced a turnaround plan aimed at simplifying the business model of the conglomerate, which had grown to encompass everything from light bulbs to loans. |
| Since then, GE has announced the sale of several divisions, including its rail and health technology units. | Since then, GE has announced the sale of several divisions, including its rail and health technology units. |
| However, the disposals have failed to rebuild investor confidence and shares have almost halved in the past 12 months. | However, the disposals have failed to rebuild investor confidence and shares have almost halved in the past 12 months. |
| In June, the Dow Jones Industrial Average cut the company from its 30-company stock index - a move that reflected its shrinking position in the US economy. | In June, the Dow Jones Industrial Average cut the company from its 30-company stock index - a move that reflected its shrinking position in the US economy. |
| Mr Culp, 55, who will be chairman as well as chief executive, said GE "remains a fundamentally strong company with great businesses and tremendous talent". | Mr Culp, 55, who will be chairman as well as chief executive, said GE "remains a fundamentally strong company with great businesses and tremendous talent". |
| It remains committed to its spin-off strategy, he added. That will leave it focused on areas such as jet engines, power plants and renewable energy. | It remains committed to its spin-off strategy, he added. That will leave it focused on areas such as jet engines, power plants and renewable energy. |
| "We have a lot of work ahead of us to unlock the value of GE. I am excited to get to work," Mr Culp said. | "We have a lot of work ahead of us to unlock the value of GE. I am excited to get to work," Mr Culp said. |
| Power problems | Power problems |
| GE has been dogged by problems at its power division, which makes machinery for power plants and has struggled amid tepid demand. | GE has been dogged by problems at its power division, which makes machinery for power plants and has struggled amid tepid demand. |
| On Monday, the firm said it expected to write down $23bn in impairment charges on its power division. | On Monday, the firm said it expected to write down $23bn in impairment charges on its power division. |
| The company has also appointed former American Airlines chief executive Thomas Horton as lead director on its board. | The company has also appointed former American Airlines chief executive Thomas Horton as lead director on its board. |