I think Larry Culp is doing fantastic job in getting ahead of earnings reports and creating transparency. Lots of cuts in Power still planned. Factories switched to services and spare parts production per last earnings call. What is John doing ? We see scott on conference calls. If John is getting paid what he is what is he doing? Getting ready to spin something off?
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So tell me about your childhood
With regards to Gas Power, at some point they are going to have to decide whether to s--- or get off the pot. There's just not a lot of appetite in the market for new gas power plants, even though the fuel has remained cheap. Existing plants aren't getting a lot of hours put on their equipment either, which means less services revenue going forward (with the exception of MYAs where the customer is already paying). How many MYAs do you expect GE to sell in the future to go with their imaginary gas turbine orders?
Yes. They're selling Gas Power........ right
Those people selling Gas Power, are they in the room with you now? Could we all see them or is it just you? Are they telling you that the T rates will shut down Greenville?
Pretty sure he is here to package Gas Power and shop it around. Whatever his negative contributions in the Immelt regime, the fact is he has experience engaging at the CEO level with firms that are big enough to do a deal for Gas Power. He also has international experience, and many potential bidders are international entities. He is also seen as senior enough to deal with the inevitable anti-trust and export control issues that will come up in a divestiture, which enables Larry to spend his time running RemainCo and going on offense with that portfolio.
As others pointed out Rice also has enough experience to know that we have to drive gross margins back up, how that can be done, and can communicate that internally and externally.
Suciu, for his part, is senior enough and rich enough to tell other company officers to go to hell, which is a desirable trait if you are fixing our redundant and inefficient commercial organization, which includes merger and de-layering of the combined New Units and Power Services commercial teams globally. He is also senior enough to help ensure we don’t go dry on sales during the divestiture process, and therefore don’t repeat what happened to Alstom, wherein their sales deteriorated substantially during the drawn out closing process.
Let's not forget they brought back Suciu as well. How many old timers with ties in the industry are needed? And this is while they still have not jettisoned other Officer level sales vps. too much overlap and expense
I know right, the guy comes in and explains in suit that we cannot sell products anymore at this price point. That was the problem with old GE CEO sucesstion plan. Jeff put out statement he was retiring. He tells his business leaders to punch up sales at all cost and if they are successful they might get the CEO job. Steve does what he thinks is right and puts the division in poor financial situation with pending downturn in power. Glad Culp is there that is for sure. As for John, I guess he has the respect and knowledge to tell new leadership that services margins were too low and need to change. After all if significant profits are not there in services sector of power why be there. As for new unit sales not sure one can raise prices alot that issue has been always concern when competitors are hungry for jobs. It is a competitive landscape to deal with for sure. One thing is clear GE needs to listen to their customers and bring Culp with them to large client meetings. You will see a turn around and damn quick. That boy gets it and how!
Um, we pay someone $2M a year to change price tag on our products? Whatever, not going to change the fact customers’ machines are not dispatched and they don’t need service anyway.
One of John's first jobs is to re-establish sanity in marketing pricing for services. In support of JI's desire to achieve $2/EPS, he demanded of his Power new unit and services business to secure every opportunity......lack of discipline and mis-aligned incentives made GE establish the floor on pricing......globally. It has yet to recover, but suffice it to say, with other OEM's being asked why they were now so costly compared to GE, dropped their price. Needless to say, JI, SB and JM are out of the show, and the prime, if not total reason that the "market is so bad" is that GE drove it to this position. John ran the business and was known to have the ability to get customers to pay more incrementally on work from GE. Granted it was in the heyday, but still..... so, he has already told major customers, both CSA ones and transactional frame agreement customers that GE cannot continue to lose money on their business and everyone must get back to some level of sanity in prices, and in essence, the jig is up, you've taken advantage of our failed growth strategy, there is a new sheriff in town and time to get real. Aside from that, he's there to coddle the newbies, SS and RS, with SS building a new organization withing GE Power with his new unit business cronies, and RS about to close on that nice compound on the big island.....FIVE-O!!!
Rice was hired to give some credibility to Power, but anyone familiar with GE's past knows what a joke that is. Just shows that the BOD is just as complacent and incompetent as in the past. With airlines cancelling MAX orders, Healthcare being sold off, and no clear path for Power going forward, Culp needs to hold people responsible instead of handing out bonuses.
Counting his bonus and stock options, like all the other execs.
I was talking with him last night. He spends a lot of time here looking for ideas.
Planning his weekend while making GE MONEY of course. What the hell are doing on payday.........