crisisstricken ge to unveil painful roadmap to recovery
Last Updated : GMT 09:03:51
Almaghrib Today, almaghrib today
Almaghrib Today, almaghrib today
Last Updated : GMT 09:03:51
Almaghrib Today, almaghrib today

Crisis-stricken GE to unveil painful roadmap to recovery

Almaghrib Today, almaghrib today

Almaghrib Today, almaghrib today Crisis-stricken GE to unveil painful roadmap to recovery

Crisis-stricken GE to unveil painful roadmap to recovery
New York - Al Maghrib Today

Iconic American industrial behemoth General Electric, which has lost investor confidence amid bad investment decisions, is preparing to slice up its empire again, selling major business segments and laying off thousands.

Hammered by financial markets, with its market capitalization down more than $100 billion since January, the maker of jet engines and power turbines is paying dearly after making losing bets that the energy sector, in particular oil and gas, would grow indefinitely.

Shareholders appear resigned to a cut in dividends, the first since 2009, as GE had only $7 billion in cash flow at the end of September but was due to pay out $8 billion.

"There is no sacred cow," newly installed CEO John Flannery has said repeatedly about the need to cut costs and restructure.

To rebuild trust, Flannery, who has been CEO for only three months, will roll out plans to revive the company on Monday.

Deutsche Bank analyst John Inch said there was no way to sugarcoat the situation.

"They have a crisis of investor confidence," he told AFP. "GE is in a cash crunch."

Scott Davis of Melius Research put it even more starkly, calling the company "disgraced" and saying it "needs to clean house as fast as possible."

Flannery took the helm after 16 years of leadership by Jeff Immelt, who sold off GE's stake in TV and movie giant NBCUniversal as well as its household appliance segment and much of its banking and finance business.

The newly installed GE chief will unveil another austerity plan that will include significant layoffs, according to a source who spoke to AFP on condition of anonymity. The power generation business GE Power will be particularly hard hit.

The belt tightening follows a $1 billion cost-cutting program this year and an announcement of $2 billion in cuts next year. Staff levels have fallen 11 percent, to 295,000, as of the end of last year.

- Sell anything 'not nailed down' -

GE will also close its research and development centers in Shanghai, Rio de Janeiro and Munich, leaving the company with R&D facilities only in New York and Bangalore, India.

The company declined to answer queries from AFP on the plan, but in mid-October Flannery told CNBC: "It's a pretty straightforward thing that we have to tighten the belt."

The company will cut more than $2 billion in additional costs, Flannery has said, and may announce the sale of its transportation and medical IT segments, according to a source familiar with the matter.

The transportation unit produces locomotives and last year had revenues of $4.7 billion. The medical data management group led by API Healthcare and its subsidiary Centricity EMR are part of a GE branch that took in $18.3 billion in 2016.

Selling these businesses could bring GE a big step closer toward its goal of shedding $20 billion in assets over the next two years.

Another route the company could take involves spinning off its aircraft leasing operation GE Capital Aviation Services, which maintains a fleet of nearly 2,000 aircraft.

"GE will likely sell anything that isn't nailed down," Davis said.

Beyond its financial picture, GE will have to repair damage to its corporate image following revelations that former CEO Immelt secretly traveled on a corporate jet at company expense.

Experts said the practice, which was halted in 2014 after an employee spoke out, was symbolic of the mismanagement, waste and lack of internal controls which led to the current crisis.

Under pressure from activist investor Nelson Peltz, Flannery has promised to change the company's culture and may announce new steps in that direction.

He already has put the company jets up for sale, canceled the corporate car service, and called off the annual three-day retreat for executives that was due to occur at a luxury resort in Boca Raton, Florida.

Source: AFP

almaghribtoday
almaghribtoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

crisisstricken ge to unveil painful roadmap to recovery crisisstricken ge to unveil painful roadmap to recovery

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

crisisstricken ge to unveil painful roadmap to recovery crisisstricken ge to unveil painful roadmap to recovery

 



Almaghrib Today, almaghrib today Skincare PR Performance Full Year 2017

GMT 09:22 2018 Monday ,22 January

Skincare PR Performance Full Year 2017
Almaghrib Today, almaghrib today New hunt for flight MH370 gets under way

GMT 11:03 2018 Wednesday ,24 January

New hunt for flight MH370 gets under way
Almaghrib Today, almaghrib today Modern colorful bedroom renovation

GMT 10:57 2017 Thursday ,21 December

Modern colorful bedroom renovation
Almaghrib Today, almaghrib today Puigdemont candidate for Catalan president

GMT 13:56 2018 Tuesday ,23 January

Puigdemont candidate for Catalan president
Almaghrib Today, almaghrib today Turkey detains dozens more

GMT 10:47 2018 Wednesday ,24 January

Turkey detains dozens more
Almaghrib Today, almaghrib today The Rake announces editorial updates

GMT 10:46 2018 Tuesday ,16 January

The Rake announces editorial updates
Almaghrib Today, almaghrib today Europe brings on charm and blue skies

GMT 11:51 2018 Tuesday ,23 January

Europe brings on charm and blue skies
Almaghrib Today, almaghrib today For the Variety of Interior Design Styles

GMT 10:46 2017 Tuesday ,19 December

For the Variety of Interior Design Styles
Almaghrib Today, almaghrib today US Christian tourists see deep meaning

GMT 13:44 2018 Monday ,22 January

US Christian tourists see deep meaning
Almaghrib Today, almaghrib today Amazon to open first cashierless shop

GMT 10:03 2018 Tuesday ,23 January

Amazon to open first cashierless shop

GMT 00:14 2015 Tuesday ,31 March

Air raid kills scores at Yemen displaced camp

GMT 01:02 2015 Saturday ,28 March

Qatar's emir receives phone call from Saudi king

GMT 08:19 2018 Wednesday ,24 January

Magic stun Celtics, Pacers stop Spurs

GMT 09:13 2018 Wednesday ,17 January

Actress Kruger says Hollywood changing

GMT 12:52 2018 Friday ,12 January

Elvis fans all shook up on Australia party train

GMT 07:38 2018 Wednesday ,03 January

US conservatives cheer on Iran's 'brave' protesters

GMT 22:07 2011 Friday ,19 August

A changed Tunisia awaits tourists

GMT 10:20 2017 Monday ,18 December

US military to send cyber soldiers

GMT 02:23 2012 Friday ,20 January

Hudson Adorable in Polka Dot Tights

GMT 10:20 2017 Thursday ,09 November

HRH Deputy King holds weekly Majlis

GMT 06:39 2012 Thursday ,12 April

BBC Sport launches connected TV app

GMT 08:16 2017 Thursday ,12 October

France, Qatar neck-and-neck

GMT 15:14 2015 Thursday ,30 July

Study says fat should be the sixth taste

GMT 18:23 2013 Wednesday ,14 August

Soil biodiversity crucial to future land management

GMT 14:33 2011 Thursday ,14 July

All Black coach Henry warns of burnout

GMT 08:48 2017 Wednesday ,08 February

Best four new ladies’ nights in Dubai

GMT 07:03 2011 Wednesday ,28 September

SKC completes EVA plant in U.S.

GMT 13:12 2012 Tuesday ,22 May

Shiite husseiniyas \'threaten Egypt’s unity\'

GMT 11:26 2017 Tuesday ,12 December

Dubai’s first ever ‘Modest Fashion Week’ draws

GMT 09:35 2017 Monday ,11 December

Watch brand James Derby launches

GMT 12:40 2011 Thursday ,03 November

APN accused over Sunshine Coast
Almaghrib Today, almaghrib today
 
 Almaghrib Today Facebook,almaghrib today facebook  Almaghrib Today Twitter,almaghrib today twitter Almaghrib Today Rss,almaghrib today rss  Almaghrib Today Youtube,almaghrib today youtube  Almaghrib Today Youtube,almaghrib today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

.almaghribtoday .almaghribtoday .almaghribtoday .almaghribtoday
almaghribtoday almaghribtoday almaghribtoday
almaghribtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
almaghribtoday, Almaghribtoday, Almaghribtoday