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New GE CEO in trouble with USD 92 billion order backlog

GE's power division is weighed down by too many "lousy" projects in the order book, says the company's CEO.

Photo: GE Renewable Energy

A potential financial upturn in General Electrics is dependent on the revival of the company's core power business. However, it requires that CEO Larry Culp revises a USD 92 billion (EUR 81.38 billion) order book marked by lousy projects, writes The Wall Street Journal.

"We certainly have some business that we need to work through where the margins and the cash generation isn't great," says Culp to The Wall Street Journal.

In both 2017 and 2018, Boston-based GE lost USD 200 billion (EUR 176.91 billion) in market value as it struggled to cut its expenses and misjudged the market shifts.

Moreover, the orders in GE's power division were not always made on attractive terms for the company, as the former leaders mainly focused on gaining market shares.

According to Culp, there was a general confidence that more orders would benefit GE and its shareholders. However, it turned out not to be the case.

English Edit: Ida Løjmand

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