GE brings in a new CFO to save company from debts
General Electric hired Carolina Dybeck Happe as its new Finance Chief replacing Jamie Miller, the conglomerate's CFO since October 2017.
Dybeck Happe, currently the Chief Financial Officer of shipping giant Maersk, will join GE (GE) in early 2020. Happe’s appointment comes at a time when the company is experiencing mounting debts and has slimmed-down its number of businesses and its recently installed CEO seeks to replenish the executive bench with like-minded leaders.
GE's balance sheet is ground zero for its problems. The company piled up crippling amounts of debt following years of bad decisions. Dybeck Happe will lead GE's efforts to continue to whittle down that debt.
"She is a high-impact executive who brings a compelling blend of strategic and capital allocation discipline, well-honed operating skills, and transformational leadership abilities," GE CEO Larry Culp said in a statement.
"I've admired GE's team, technology, and global network and brand, and I am excited to join at a time of significant opportunity for the company and its stakeholders," Dybeck Happe said.
Carolina Dybeck Happe, currently the CFO of Maersk, will take over efforts to pay down GE's mountain of debt. GE listed total borrowings of $93.2 BN at the end of the third quarter.
After a dreadful 2018, GE shares have spiked nearly 60 percent this year on signs the company is weathering a stormy environment better than feared. Not only has GE stopped burning through cash, the company has boosted its outlook for two quarters in a row.
Fears about GE's balance sheet have eased because the company has moved to rapidly pay down debt. To raise cash, GE has sold several major businesses, including its railroad division and its BioPharma unit. And last month, GE announced plans to freeze its US pension plan for about 20,000 workers and take other steps that will slash its massive pension deficit by $5 BN to $8 BN.
Image source: The Wall Street Journal