Shares of the Boston-based company remained positive prior to the earnings presentation at 8 a.m. ET on Tuesday morning.
As the call began, the optimism proved to be short lived.
The company reported an earnings miss on top and bottom line estimates and cut the dividend for the company to a penny, down from $0.12 prior to his accession.
The miss and cutback seems to have registered as the call began and shares are heading south in pre-market trading.Necessary Measures
"DHR's dividend payout ratio had been minimal over [Culp's] time, with businesses that generated plenty of cash," J.P. Morgan wrote in a company note on his accession. "We believe this means a likely material dividend cut as well."
Such suspicions have come to fruition, as the company has reported the move was made to save approximately $3.9 billion per year for the company.
"We are on the right path to create a more focused portfolio and strengthen our balance sheet," Culp said. "We are moving with speed to improve our financial position, starting with the actions announced today."
The improved balance sheet is vital to the debt-heavy company as it seeks to maintain its credit rating and wade through some of that debt that sits at $116.4 billion, according to FactSet data. The market cap of GE stands at just $96 billion by comparison.
The company also announced the reorganization of its GE Power unit in order to cut costs and chip away at the staggering debt figure.
The company said it will endeavor to create a "unified Gas business combining GE's gas product and services groups, and a second unit constituting the portfolio of GE Power's other assets including Steam, Grid Solutions, Nuclear, and Power Conversion."
The spinoff of the power unit comes in contrast to plans under Culp's predecessor John Flannery who eyed Power as a core entity in GE's overall structure.Further to Fall?
To be sure, many analysts are still bearish on the stock as many problems still await CEO Culp. Two out of three analysts publishing research ahead of the earnings release issued sell ratings for the stock.
As Real Money's Stephen Guilfoyle pointed out, J.P. Morgan analyst Stephen Tusa has been a soothsayer on GE in the past and is warning of a sub-$10 scenario for the stock.
Culp has emphasized a sense of urgency to deal with these concerns.
"After my first few weeks on the job, it's clear to me that GE is a fundamentally strong company with a talented team and great technology," he said. "However, our results are far from our full potential. We will heighten our sense of urgency and increase accountability across the organization to deliver better results."
Culp will be charged with providing a clear picture of this brighter future moving forward.