Former General Electric transportation CEO Bob Nardelli told CNBC on Tuesday he thinks there is actually more pain ahead for his former company.
The industrial giant, which is actually from the middle of a massive restructuring, was booted out of the Dow Jones industrial average on Tuesday. The change will occur prior to the open on Tuesday, June 26.
Nardelli said the idea is actually a “sad day” nevertheless acknowledged GE was weighting the Dow down. the idea was one of the original components of the blue-chip index.
“[CEO] John Flannery has his work cut out for him. He’s been there a year right now, as well as also I think time is actually not a friend when you’re dealing with the challenges which he’s facing,” he said on “Fast Money.”
“I don’t think the worst is actually over,” added Nardelli, who is actually also the former CEO of Chrysler as well as also Home Depot.
GE was the worst performing stock from the Dow, falling more than 55 percent over the last 12 months. the idea lost more than 25 percent This specific year alone.
Flannery is actually trying to engineer a turnaround for the multinational conglomerate, which includes the sale or spinoff of parts of the company’s portfolio.
The CEO “mentioned he’s got $20 billion of assets which he has to monetize. as well as also quite honestly, they’ve had a little bit of a slow start in doing which,” Nardelli pointed out.
In May, GE said the idea was selling its transportation business to Wabtec. However, Nardelli said which won’t be realized until 2019, at least through a cash-flow standpoint.
“They’ve got to move more quickly … monetizing non-earning assets, getting rid of some of the $20 billion worth of assets which he’s identified.”