GE Stock Drops as CEO Culp Hints at Asset Sales
GE stock was down on Monday following talk from its CEO about potential asset sales.
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General Electric (NYSE:GE) CEO Larry Culp is considering selling assets belonging to the company as a way to lower the company’s leverage. The GE CEO notes that he won’t be rushing to reduce the company’s leverage, but that he does feel the need to work in a quick and decisive manner.
Culp notes that deleveraging the company is the highest priority for General Electric. News of possible plans to sell assets of the company saw GE stock drop on Monday. The stock fell below $8 during morning trading, which is a first for it since March 2009.
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While Culp is considering asset sales to bring down General Electric’s leverage, he does note that there is one area of its business the company won’t touch. That area is aviation. Culp says this is GE’s ‘crown jewel” and that it isn’t considering selling parts, or all, of the business, reports CNBC.
Larry Culp hasn’t been with General Electric long, but is hoping to turn the company around to drive value for GE stock holders. He started his tenure as CEO in early October, which had him replacing former CEO John Flannery.
Culp’s experience with Danaher (NYSE:DHR) lends to the idea that he may be able to bring value back to GE stock. He was the dead of DHR from 2001 to 2014 and during that time he was able to quintuple its revenue and market cap.
GE stock was down 6% as of Monday morning and is down 52% year-to-date.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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