According to Bob Nardelli, the former General Electric Transportation CEO, the hard time of his ex-company is not over yet. In fact, he also added that the tougher times are yet to arrive. The company is undergoing a major restructuring and was discharged from the international average of Dow Jones, which was about to open on 26th June. Though the series of events will continue at its own pace, it won’t have General Electric it.
Bob Nardelli further mentioned that the incident is indeed an unhappy one but the industrial giant was also putting a load on the Dow Jones. The present CEO, John Flannery has been in the said position for more than a year and the situations are not going in favor of him.
This year, the stocks of GE have witnessed a massive depreciation of 25%. This has fuelled the already slipping stock prices. To be precise, in the past one year the prices have gone down by more than 55%.
The present CEO had declared to monetize the assets worth $20 billion which will stabilize the situation. However, Bob Nardelli feels that the aforementioned decision was not taken at an appropriate time, which led to an alarming situation.
Previously, General Electric had declared to sell the section of the transportation business to the Wabtec, which according to Nardelli, is not likely to take place before 2019 due to the restricted cash-flow. He also added his suggestions by stating that the decisions and movements must be accomplished with swiftness in order to reduce the negative impacts of the present scenario. He further suggested to monetizing the assets that belong to the non-earning category, which may sum up to $20 billion.
Nardelli also believes that the positive approach of the present CEO will produce greater results and get over the present scenario.
However, in exchange for the statements released by Bob Nardelli, GE has not commented yet.