Posted on 05/25/2018 9:03:43 AM PDT by SeekAndFind
It’s a bad day for a CEO when he announces he’s retiring and the stock goes up. That was Jeff Immelt’s day on June 12, 2017. The news of his departure was in one sense no surprise—some investors and analysts had been urging his ouster for years;but it was also a shock.
He’d been General Electric’s CEO for almost 16 years, and outsiders were unaware of any specific succession plans or that Immelt, at age 61, had any intention of stepping down. Suddenly they were told that in just seven weeks he’d be gone as CEO (he remained nonexecutive board chairman an additional two months), to be succeeded by John Flannery, head of GE’s health care business and 30-year employee. Investors didn’t need long to decide this was good news. The market was flat that day, but they bid GE stock up 4%.
Their optimism was at best premature. The stock closed at $28.94 on June 12 and has not reached that price since. As economies boomed worldwide and U.S. stock indexes soared, GE has collapsed in a meltdown that has destroyed well over $100 billion of shareholder wealth. Pounded by a nonstop barrage of bad news, investors are traumatized and disoriented. “They just can’t figure it out and don’t want to invest,” says analyst Nicholas Heymann of William Blair & Co. “This isn’t like surveying the landscape. It’s spelunking with no lights and no manual.” Analyst Scott Davis of Melius Research says some investors have become permanently disillusioned: “Many have told us they will never own GE again.”
Retirees and employees who bought heavily into the stock are furious; some picketed GE’s annual meeting in April. Former executives are dumbfounded. “It’s unfathomable,” says one. “You couldn’t possibly dream this up. It’s crazy.” After all, this is GE, corporate aristocrat,
(Excerpt) Read more at fortune.com ...
Not that long ago, people would have thought GE was nuts to exit the market.
GE Appliances is a global company. Many products are imported from Mexico and China, among other places. Much, however, is made in the US; among them are refrigerators, dishwashers, laundry products, and hotel room air conditioners. There are several plants in the US including TN, AL, NC, and 5 plants at Appliance Park in Louisville, KY.
EP
Toyota makes trucks in Texas.
Good to know but my junk GE frig was bought several+ years before that.
Get this! The shelves in the freezer kept falling out of the grooves.
Why? Because the freezer shelves were too small for the allocated space.
If they couldn’t size the shelves correctly what else did they engineer wrong.
I soon found out!!!!!!!!
Aren’t f-150’s made in Kansas City and Dearborn?
You are correct! Obumbler leaving office took away a the fascist type relationship with GE and the fawning government. GE couldn’t build a reliable appliance to save them out of hell at this point.
Jeff Immeldt happened, is what. He wrecked the company.
Cost me plenty I’m pized at him. Typical elitist.
#10 and firing 10% of the people in each dept just because.
Well hmmmm… I guess I stand corrected all the way around... Thanks to all...
:(
was this while the cEO was on Obama’s “boost the US economy” advisory board?
“Firing bottom 10% every year, then hiring them back as consultants.”
That’s not exactly how it worked. It was explained as cut from the bottom and add to the top. Replace the dead wood on a continual basis. Once gone they were NOT hired as consultants. It was a really brutal process and was very hard on employees and managers. Everyone knew good people who got canned for having 1 or 2 bad years and HATED IT. Immelt was actually the one who ended it.
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