General Electric (GE) is more than ever weakened by its energy hub, which had absorbed the activities of “power” (” power “) to Alstom in 2015 and 12.5 billion euros. The american giant has announced, Tuesday, October 30, a historical loss of 22.8 billion dollars (20 billion euros) in the third quarter, and a restructuring of this division producing and maintaining powerful turbines for power plants (nuclear, gas, coal, hydro).
Lawrence Culp, replacing John Flannery, sacked unceremoniously on the 1st of October, after fourteen months at the head of the group, had announced the color upon his appointment as the CEO of GE. He intended to depreciate up to $ 22 billion of the assets of the branch energy to straighten GE. After a tour of the world (and the group) for four weeks, the new boss concluded that if GE is a “company fundamentally strong, with a talented team and excellent technologies, its results are” far from reflect this potential “.
“We’re putting in double duty and ask to make more accounts within the organization, to deliver better results “, he warned on Tuesday. Joining the acts at the word, Mr. Culp has announced a split into two entities of the division energy (including Alstom) – still sick from the fall of the orders for turbines related to the decline in electricity prices on the wholesale markets. Has been underway for several years, this sharp decline led to huge excess capacity around the world. For GE, the difficulties are compounded by mid-September, with the announcement of problems of oxidation on its turbines of new generation, meant to rearm the group in the face of competition more and more hard.
A sinister industrialist dreaded to Belfort
A first unit to meet the production of large gas turbines and associated services ; the second…
