A turnaround for the century-old company is imminent as GE stock soars
A legacy company’s revival is no simple task. For more than 125 years, some people thought General Electric (GE) would never be able to recover. But this industrial behemoth is now edging closer to realizing a multi-year recovery plan that will change it from a once-respected but floundering conglomerate into an aerospace-focused business. Investors are thrilled by the good developments as the stock has hit its 52-week high.
Debt repayment, asset sales, the cash flow focus, and a new direction,
According to analyst John Iddé, management’s emphasis on “cash flow, clearing the balance sheet, divesting assets, [and] repaying debt” is what’s behind the recent rise in GE’s stock price.
The stock performance is up an amazing 100% from the prior year, and it has increased by more than 72% since the year’s commencement.
GE Stock An effective steering hand at the wheel:
The corporation has been making steady advancements since Larry Culp assumed leadership of GE over five years ago intending to untangle a multi-national behemoth enmeshed in complexity. According to Columbia Business School professor Catherine Rudy Hairegan, who specializes in corporate strategy and turnaround, GE is “weighed down with too much debt or liabilities… It was like trying to bail water with lead shoes on.”
During his two decades in office, Culp and his predecessor, Jeff Immelt, had been in charge of hundreds of acquisitions. Lighting systems, home appliances, polymers, airplane engines, medical products, financial services, water treatment, and even television stations were among the acquisitions.
Submitted July 30, 2023 at 05:48AM by akashtheg8 https://ift.tt/jgaT2CG
