General Electric Company (NYSE:GE) announced that Russell Stokes, current president and CEO of GE Energy Connections, has been named president and CEO of GE Power, effective July 3, 2017. He succeeds Steve Bolze, the former president and CEO of GE Power, who has announced his decision to retire. In his new role, Mr. Stokes will lead the integration of the legacy GE Power and Energy Connections businesses into one, power-focused unit called GE Power.
“Russell brings a strong combination of operational, industrial and energy experience to this role, and can now scale his leadership skills with the combined GE Power and GE Energy Connections,” Jeff Immelt, chairman and CEO of GE, said. “Bringing these two businesses together, we saw an opportunity to align our global customer base, create a common strategy, and leverage synergies to simplify our structure. Since taking the role at Energy Connections, Russell has led the integration of Alstom Grid and planned disposition of Industrial Solutions. He has a keen sense of the market, and knows how to invest in technology ahead of the curve.”
Mr. Stokes is a 20-year GE veteran. For the past 18 months, he has led Energy Connections. Prior to this role, Mr. Stokes was president and CEO of GE Transportation, where he delivered the best year in the history of the business. He has also held senior roles in GE Lighting and GE Aviation, and across a variety of functions, including finance, sourcing, services, and operations. Mr. Stokes graduated from Cleveland State University with a degree in finance and has completed GE’s Financial Management Program.
Mr. Stokes’s appointment comes after Steve Bolze, the former president and CEO of GE Power, announced his retirement. Mr. Bolze has spent 24 years at GE, and led GE Power for the last 11 years. During his tenure, Mr. Bolze helped build the world’s leading power business – overseeing the historic launch of the HA gas turbine in 2015, the world’s most efficient gas turbine; leading the acquisition and integration of Alstom, GE’s biggest industrial acquisition in history; and transforming the Power business with digital capability both internally and in its products and services.
“For the past eleven years leading Power, Steve has been a tireless advocate for our customers and GE,” Jeff Immelt, chairman and CEO of GE, said. “He has a relentless passion for the business, and is a great builder of teams and talent. As an experienced operating leader, Steve has overseen the transformation of our energy portfolio, and leaves Russell with a strong foundation to build upon. I want to thank Steve for his years of dedication and his valuable contributions to GE.”
The new, combined GE Power business, consisting of the legacy GE Power and Energy Connections businesses, will drive better customer focus, fewer redundancies and lower costs. For 2Q ’17, the GE Power and Energy Connections business will report quarterly results as separate businesses, combining as one reporting entity in 3Q ’17.
Shares of General Electric closed yesterday at $28.45, down $0.49 or -1.69%. GE has a 1-year high of $33 and a 1-year low of $27.10. The stock’s 50-day moving average is $28.33 and its 200-day moving average is $29.93.
Overall, 2 research analysts have rated the stock with a Sell rating, 3 research analysts have assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $31.17 which is 10% above where the stock closed yesterday.