General Electric abruptly removed John Flannery as CEO on Monday and installed Lawrence Culp as his successor and chairman.
GE also said it will take a $23 billion non-cash charge for its power business, adding that it "will fall short of previously indicated guidance for free cash flow and EPS for 2018."
"GE Power's current goodwill balance is approximately $23 billion and the goodwill impairment charge is likely to constitute substantially all of this balance," the release said. "The impairment charge is not yet finalized and remains subject to review."
GE shares surged 9 percent to $12.30 in premarket trading Monday on the news.
The stock posted one of its worst weeks of 2018 last week, down 7 percent, and hit a new 9-year low of $11.21. Concern about a recent gas turbine failure in Texas has hung over GE, with its board of directors meeting Wednesday to discuss how widespread the issue is, according to the Wall Street Journal. Flannery reportedly reassured employees that the company's engineers have found a solution to the flaw and told staff to "fight for the company," saying media reports overplayed the failure of a turbine blade at the Colorado Bend power plant in Wharton County, Texas.
Flannery was appointed August 2017.
https://www.cnbc.com/2018/10/01/ge-removes-flannery-as-ceo-takes-23-billion-non-cash-charge-for-power-business-problems-and-withdraws-guidance.html