(Reuters) – General Electric Co Chief Executive Larry Culp on Thursday set conservative profit targets for this year and staked his reputation on hitting them and doing better in 2020 and beyond, igniting a rally in the stock.
FILE PHOTO: The logo of U.S. conglomerate General Electric is pictured at the company’s site of its energy branch in Belfort, France, February 5, 2019. REUTERS/Vincent Kessler/File Photo
Culp’s detailed pep talk, which drew praise from Wall Street analysts on a conference call, swiftly reversed an earlier rout in the stock as he stressed GE was serious about its targets after years of missing profit expectations.
The forecast was low largely because GE will be spending $2.5 billion on restructuring this year, Culp said, adding the investment would