General Electric powers downwards

“WE COULD USE a lot more ‘out’ and a good bit less ‘up’ around here.” So declared Larry Culp, the new boss of General Electric (GE), on October 30th as he discussed the firm’s third-quarter results. He took over at the troubled American conglomerate on October 1st and is already sure that it needs to focus more on customers and rivals “and, frankly, less on corporate”, ie, the head office.

When Mr Culp replaced John Flannery, a GE insider who had held the top job for barely a year, investors cheered. GE’s shares had plunged of late even as other industrial shares rose. Initially, the appointment of Mr Culp, an outsider who had successfully led Danaher (a smaller industrial conglomerate), boosted GE’s share price. But the Culp bump subsided as investors started worrying that even Mr Fixit may not be able to fix what ails GE.

His predecessors, Jeffrey Immelt, chief executive for 16 years until August 2017, and Jack...

via Business Feeds

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