GE power woes highlight Danaher strategy
John Flannery had only been in the job for just over a year and will be replaced by Lawrence Culp, the man he brought in to revitalise the struggling conglomerate. The power business will also write off almost $23bn in goodwill as it struggles to turn around.
Culp led Danaher from 2000 to 2104, where he collected together multiple companies including Tektronix, Keithley and Fluke. These were part of a split in 2015 and are now part of a spinoff of the indistrial and automation companies into Fortive. Fortive itself has now spun off its indistrail power business into a $3bn joint venture with Altra Industrial Motion. Danaher today is largely a lie sciences company, as it has also spun off its dental technology businesses.
Culp was brought in to use his expertise from Danaher to sortout GE, but the struggles in the power business have remained. The impairment charge on the goodwill is not yet finalized and remains subject to review and the Company will provide additional details when it reports third quarter results.
“GE remains a fundamentally strong company with great businesses and tremendous talent,” said Culp. “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.”
Related stories:
- GE LAUNCHES DISTRIBUTED BATTERY STORAGE SYSTEM
- MITSUBISHI BUYS OUT GE FROM POWEREX VENTURE TO FOCUS ON AUTOMOTIVE
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