- General Electric plunged to a post-crisis low of $US12.01 on Wednesday.
- The once-sprawling conglomerate is in the middle of a turnaround effort, led by new CEO John Flannery, but those changes have been slow to change the stock’s trajectory.
- Follow GE’s stock price in real-time here.
Shares of General Electric sank 2.7% Wednesday, to hit $US12.01, the stock’s lowest level since the financial crisis in 2009.
GE’s gross profit has fallen significantly from $US59.19 billion in 2010 to just $US11.49 billion in 2017. The stock has fallen in step.
CEO John Flannery, who took over last year from Jeff Immelt, has promised to “maintain a disciplined financial policy” that so far has involved slashing the company’s once-dependable dividend yield and selling or spinning off underperforming units like healthcare and oil and gas.
Flannery has trimmed the once-sprawling conglomerate down to three main industries: aviation, which produces jet engines; power, which supplies power plant turbines; and renewable energy, which makes wind turbines. Together, these three units generate about $US71 billion in annual revenue, the Boston Globe reported.
“We are aggressively driving forward as an aviation, power and renewable energy company-three highly complementary businesses poised for future growth,” Flannery said in a June press release. “We will continue to improve our operations and balance sheet as we make GE simpler and stronger.”
Wall Street appears to be slightly convinced of Flannery’s turnaround efforts, giving the stock an average price target of $US15.75, 30% above where the stock was trading Wednesday.
- There’s a $US1 trillion question hanging over stocks right now – and the answer could determine the ultimate fate of the market
- One dirty word keeps popping up as Wall Street weighs the next market crash – and it should strike fear into the hearts of investors everywhere
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.