Shares in US industrial giant General Electric soared 16 per cent as it announced plans to name a new CEO. John Flannery, who took over the company just a year ago, has been replaced with H Lawrence Culp Jr as the chairman and chief executive of GE with immediate effect.
The company also warned that cash flow and earnings for 2018 would fall short of its previous guidance due to a weaker performance at the GE Power unit.
Confirming this, Culp said: “GE remains a fundamentally strong company with great businesses and tremendous talent. It is a privilege to be asked to lead this iconic company.
“We will be working very hard in the coming weeks to drive superior execution and we will move with urgency. We remain committed to strengthening the balance sheet including deleveraging.
“Tom and I will work with our board colleagues on opportunities for continued board renewal. We have a lot of work ahead of us to unlock the value of GE. I am excited to get to work.”