GE CEO’s “Stunning” Admission
A reader’s opinion on the SAT’s experiment with “adversity” scoring:
“My husband had just been killed in an auto accident when my two children were ready to attend college. Fortunately, my children were bright; I don’t know what I would have done had they not scored high on the SATs and gotten scholarships.
“I know everyone is not on a level playing field. But who gets to decide what a level playing field is? Playing with the lives of prospective college students’ lives is not the answer.”
As the Chinese consider cracking down on Apple, a reader says…
“As you pointed out, the Chinese government can do whatever it wants.The government can confiscate Apple stores, Apple plants and Apple products (and then steal intellectual property). So Apple’s bottom line could get hit. Is this scenario likely? No.
“Now, if the Chinese prohibit Apple from shipping products out of China or put tariffs on iPhones, Apple would definitely be hurt.”
Last, a reader’s interesting take on Amazon’s longevity…
“Google… will do everything in its power to keep the online retailers, wholesalers and resellers running. Its business model and income depend on it.”
That’s really an interesting idea.
What if each FANG stock is essentially propping up the others? If one company fails, will the whole house of cards collapse?
Your Rundown for Friday, May 31, 2019:
GE: Too Little, Too Late?
The last couple years have been brutal for once mighty General Electric. Adding insult to injury, the company was punted from the DJIA index in June of 2018 — an index GE had been continuously a part of since 1907.
Enter CEO Larry Culp — presumably wearing a white hat — who had turned things around at Danaher Corp. in the 14 years he served as that company’s CEO. And Culp immediately set to work unloading resource-sucking divisions of GE.
One crucial division of the company that was hit hard was GE’s enormous power segment when the company discovered one of its most important products — natural gas-fueled power turbines — had an “oxidation issue” that compromised its blades. (Rust?)
At any rate, Culp tipped his hand on a conference call with investors Thursday… and it pertains to the same power division based in Greenville, South Carolina.
As Reuter reports: “General Electric Co’s chief executive said… he was ‘really stunned’ to learn that a major factory had only recently started using lean manufacturing techniques.”
Culp said: “They did a very nice job. But just — it really stunned me (to) be there in the summer of 2018 and have such an important plant at GE beginning its lean journey or re-beginning its lean journey.”
“Lean techniques are widely used to reduce manufacturing costs while increasing efficiency and quality,” Reuter says. “
“GE’s Greenville factory makes large, gas-fired turbines that generate electricity in power plants around the world. GE’s power business has been losing money and is the top priority in Culp’s efforts to turn around the company.”
Curious. Culp wasn’t aware of what was going on at one of the largest, potential money-making divisions of GE? Honestly, it’s a stunning admission. And omission.
Is it a good sign that GE’s making strides to become a more lean business or is it a sign of a dying business?
Market Rundown for Fri. May 31, 2019
S&P 500 futures are down 30 points to 2,761.
Oil continues to slide — down $1.50 to $55.09 per barrel.
Gold’s gotten a boost from renewed trade war panic; it’s priced up $10.70 to $1,303.10 per ounce.
Bitcoin is up $90.22 to $8,365.70.
Have a great weekend. We’ll talk Monday.
For the Rundown,