After posting a disastrous first quarter. General Electric Company (NYSE: GE) Chief Executive Jeffrey Immelt is resisting calls from Wall Street to break up the conglomerate. "There are more reviews and intensity, but no real change to the strategy,'' Immelt said told Bloomberg News. ``The strategy remains intact.''
Really? Shares of the Fairfield, Conn.-based company have slumped about 13% this year. The stock had its biggest fall in 20 years after reporting disappointing results. Immelt, though, either is oblivious or cool under fire. I am not sure which.
What does Immelt know that every analyst on Wall Street that follows the company is missing? The problem, as Bloomerg notes, is that some commercial real estate deals were thwarted because of the turmoil in the financial markets.
``We've sold some of the property that got pushed into April,'' he told Bloomberg. ``The capital markets remain challenging. We think advising caution is a smart move.''
Immelt, who has resisted calls to sell NBC Universal, has sold under-performing units such as insurance and plastics to focus on better performers such as aviation and power generation. I am sure he will be asked during tomorrow's annual meeting what businesses are next for disposal.
Judging from the investor anger of late, Immelt better have some good answers or else his tenure as the successor to Jack Welch may come to an end.
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Reader Comments (Page 1 of 1)
4-22-2008 @ 5:19PM
gumbo koontz said...
go ask Imelt to buy General Motors and rename GE to GEM as in General Electric Motors!! GEM will be double in sales overnight. GE can supply electric motors to GM's electric cars and make billioins!!
4-22-2008 @ 7:55PM
Kent said...
Jack Welch does criticize his execs; that's his style. The bottom-line for him is, the performance and results at GE. Trouble with shareholders, they want the quick-fix and immediate returns. Jeff is reshaping GE and it will probably take him another 3 years or less to do it. Jack is well aware of it, and just merely made it known to Jeff who doesn't have to be reminded.
4-23-2008 @ 7:06AM
leo maynes said...
I guess it depends on your definition of a quick fix. When a stock is selling at approximately 66% of its price in 2000, I think its about time that Immelt redefine his definition of a "quick fix", it doesnt seem to be working very good. Personally, I find it a "damn slow" fix.
4-23-2008 @ 9:56AM
Bill said...
Breaking up GE is not answer! Changing Thinking to generate Profits for Customers and SHAREHOLDERS is answer....That is what built GE.....
Immelt and company live in the world of "Nephalim"......And from their work product over the past 5 years it is clear they don't give a
rats butt about the shareholders....
Can this guy and get on with it.....
In fact....is there a web site where we can register our shares with a group to can this guy and get on with providing returns to SHAREHOLDERS!
Immelt better think about it and get on the stick pronto.....Hell I just might put the site up!
4-23-2008 @ 12:00PM
gumbo koontz said...
GE can invest in firewood and charcoal. Rednecks are burning a godawful more of those lately to save on heating bills. Air gets so dirty in mountain towns and northern cities from firewood. Chugg chugg black spewing soot particulates... Utilities costs too much for heating and cooking...
4-23-2008 @ 12:00PM
gumbo koontz said...
GE can buy Peabody Coal, huh?
4-23-2008 @ 2:16PM
gumby said...
GE like to buy anything no 1 or no 2 . There is plenty of them around to scoop up... How about AMD?
4-23-2008 @ 12:02PM
gumbo koontz said...
How about AMD? It is no 2 in chips...
5-09-2008 @ 8:23AM
jerry said...
i'm with the guy that says can the ge ceo.
how do the stock holders get rid of this guy???
6-16-2008 @ 8:53AM
TOM said...
I have been an appliance employee for 30 years now they are dumping us thinking this will help the stock. That is a joke. What stocks are doing well? Except oil and Google. I will never buy anything Ge again. I have given most of my life to this company now they are feeding us to the dogs and giving us zip in return. What are American works going to do. We don’t produce nothing and when the companies stock goes down dump the employee that will fix it. I worry about are children there is no loyalty anymore.