Published 9:39 AM EDT Oct 1, 2018
General Electric is making a change at the top, naming Lawrence Culp, former head of tech firm Danaher Corp. to replace CEO John Flannery.
Culp, who had been named to GE's board of directors in April, takes over a shrinking corporate giant, the company announced Monday. In recent years, GE has sold its appliance division, as well as many of its GE Capital assets.
Most recently, GE said it would sell its GE Healthcare division and energy company Baker Hughes, which it acquired just two years ago.
Culp, 55, was president and CEO of Washington, D.C.-based science and tech company Danaher Corp. from 2000 to 2014.
“GE remains a fundamentally strong company with great businesses and tremendous talent. It is a privilege to be asked to lead this iconic company," Culp said in a statement.
“Larry Culp has a proven track record in company transformation and delivering shareholder value," said Thomas Horton, GE's lead director in a statement. "The board looks forward to working with Larry and his team to return GE to growth and long-term success."
More: 5 ways General Electric is shrinking as an American corporate icon
GE also announced its GE Power business would take a $23 billion non-cash charge due to its weak performance. GE Power "will fall short of previously indicated guidance for free cash flow and EPS for 2018," the company said.
GE shares (GE) were up 12 percent in early trading at $12.63; they rose 15 percent in premarket trading. Shares had fallen 39 percent this year and hit a one-year low last week.
In June, GE was removed from the Dow Jones Industrial Average, an index it had included in since 1896.
Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.