General Electric CEO John Flannery is out

AP/Richard Drew

General Electric Chairman & CEO John Flannery is interviewed on the floor of the New York Stock Exchange.

General Electric head John Flannery is out after just more than a year at the top of the company. He will be replaced as chairman and CEO by H. Lawrence Culp, Jr.

GE said it will take a $23 billion goodwill charge for its power business. "GE expects to take a non-cash goodwill impairment charge related to the GE Power business," the release said. GE Power's current goodwill balance is approximately $23 billion and the goodwill impairment charge is likely to constitute substantially all of this balance.

The conglomerate also warned that it will miss its 2018 earnings-per-share gudiance. "While GE's businesses other than Power are generally performing consistently with previous guidance, due to weaker performance in the GE Power business, the Company will fall short of previously indicated guidance for free cash flow and EPS for 2018."

GE shares are up more than 10% on the news.

This story is developing...

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