I’m not surprised by our stock’s 2-day plunge

John Flannery, the brand-new chairman in addition to CEO of General Electric, told CNBC on Tuesday he’s not surprised by the two-day stock downturn, saying the company disappointed shareholders.

The stock was down 5 percent on Tuesday, trading under $18 a share, bringing the two-day loss to 12 percent. Monday’s 7 percent decline on GE’s investor day adjustments was its worst session since April 2009.

“I’m not trying to run the company for the reaction on Monday in addition to Tuesday or Wednesday of This particular week,” Flannery said on “Squawk on the Street.”

“We have a long-term plan. We have a lot of work to do,” he added. “We’ve reinvented ourselves many, many, many times.”

Addressing why an investor should buy the stock, Flannery pointed to the outlook over the next three to several years. “in which’s what someone should buy,” he said. “is usually in which going to happen in two months, four months, six months? No, there’s operational things we need change inside the company.” however he added, “There’s something under the hood in which’s worth considering as well.”

Among Monday’s announcements, the 125-year-old industrial conglomerate said in which would certainly cut its quarterly dividend in half to help fund an aggressive turnaround in addition to restructuring.

Cutting the dividend was “inside the best interest of the shareholders in addition to the company,” Flannery told CNBC, trying to assure investors who depend on the dividend payout in which the decision was not taken lightly. “The most important thing for us to do currently is usually improve the results of the company, improve the cash flow of the company, be incredibly disciplined about how we invest,” he added. “As we grow the earnings in addition to cash, job one, we’ll move the dividend forward, too.”

“I have a strong command of what’s going on inside the company,” Flannery added. however he acknowledged “in which is usually ‘show me’ time.” He said he’s spent 100 days “crawling through the company,” in addition to he features a “strong command” of the issues.

“in which’s quite clear we’ve got strong franchises at the core of This particular company,” Flannery said. He said its power business was mismanaged in addition to in which needs fixing however “health care is usually strong, aviation is usually strong.” Any decisions on selling or keeping business units will be based on fundamentals, he said.

During Monday’s investor day presentation, Flannery said the future of GE is usually going to be “more focused,” as in which looks to shed more than $20 billion of assets. He also outlined steps to turn GE into a smaller company around three businesses: power, aviation in addition to health care. in which’s a sharp divergence via the high-flying aggressiveness of Jeff Immelt in addition to Jack Welch. GE handed Flannery the reigns earlier This particular year, after Immelt retired.

GE on Monday also cut adjusted 2018 earnings to $1 per share to $1.07 per share, in addition to pegged free cash flow at significantly reduced levels of $6 billion to $7 billion.

“I’ve been quite clear where we have underperformed in addition to about how to fix in which,” Flannery said Tuesday. “Going back to the past is usually not productive.” He also addressed concerns about GE’s accounting tactics, saying “there’s no accounting issue. No one’s been had.” GE has also been criticized with some saying the company has become unwieldy in addition to unmanageable.

As part of the corporate overhaul, GE also plans to reduce its board of directors via 18 to 12. Three of them will be brand-new members.

Jack Brennan will remain lead director, Flannery said Tuesday, adding “in which’s not a possibility” in which he will depart. “Jack features a tremendous track record, a tremendous leader. He’s been incredibly supportive with me. I don’t see any change there,” he said.

“We’re looking for industry expertise in these three brand-new directors,” he reiterated, “more digital in addition to technology orientation going forward.”

Last month, Ed Garden, co-founder with Nelson Peltz of the $13 billion Trian Partners hedge fund, was named to the GE board after the departure of several top executives, including CFO Jeff Bornstein.

The billionaire activist investor Peltz has been pushing for adjustments at GE since he unveiled in October 2015 what was a roughly a $2.5 billion investment inside the company at the time. As of Tuesday’s open of $18.79 per share, Peltz’s GE stake of nearly 70.9 million shares was worth just $1.33 billion.

Over the past two years, GE shares lost about 25 percent of their value compared having a 30 percent gain for the S&P 500.

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