GE has named Lawrence Culp as its new chief executive and president, as it records a hit on its power business.
Culp (pictured) will take up the position immediately, replacing John Flannery who has held the role since last year.
The company said also that GE Power was falling short of expectations, compared with its other business units, which includes renewables, that are performing consistently in line with previous guidance. GE Power includes the grid business acquired from Alstom in 2015.
GE said it expects to take a “non-cash goodwill impairment charge” related to the power business that is likely to take up all of the $23bn goodwill balance.
The company added that the impairment charge is not yet finalised and remains subject to review. Further information will be provided in GE’s third quarter results.
Culp was chief executive and president of Danaher Corp from 2000 to 2014 and has been a member of the GE board since April this year.
GE has also appointed Thomas Horton as lead director. He was president and CEO of American Airlines from 2011 to 2013 and chairman of the airline group from 2013 to 2014. He has also been a GE board member since April.
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.”