LONDON (ShareCast) - (Sharecast News) - General Electric unexpectedly removed chief executive John Flannery on Monday after just twelve months on the job, also warning that profits would be lower than previously guided.
The group also revealed some bleak financial news as it warned that its 2018 profit would "fall short" of guidance due to a "weaker performance" from its floundering power division.

Flannery will be replaced by H Lawrence Culp Jr, former CEO of industrials outfit Danaher.

GE opted to install Thomas Horton, the former top man at American Airlines, as its lead independent director, also effective immediately.

GE warned it would take an impairment charge of nearly $23bn related to GE Power.

"GE remains a fundamentally strong company with great businesses and tremendous talent. It is a privilege to be asked to lead this iconic company," Culp said.

"We will be working very hard in the coming weeks to drive superior execution, and we will move with urgency."

GE has struggled for years due to poorly timed deals and, in order to pay off mounting debts and give its stock a running start, has begun selling off countless business units, including its century-old railroad division, Thomas Edison's light-bulb unit, Baker Hughes and its health-care unit which makes MRI machines.

The company was removed from the Dow earlier in 2018 and last week saw its market value fall below $100bn for the first time since 2009.

As of 1320 BST, GE shares had shot up 13.91% in pre-market trading to $12.86 each

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