Nelson Peltz likes Flannery’s turnaround plan at GE: ‘It’s onward and upward’

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There’s more to come in General Electric‘s turnaround plan, activist investor Nelson Peltz suggested in an interview with CNBC’s Jim Cramer on Thursday.

“It’s onward and upward, they have the makings of a plan,” Peltz said at The Deal’s 2018 Corporate Governance Conference.

Cramer asked about the seriousness of the breakup plan but Peltz did not offer any further details. Peltz instead advised that investors should take CEO John Flannery and the rest of GE’s management by what they say.

Shares of GE hit a high of $13.80 in trading Thursday, before slipping to trade flat at $13.69.

The stock has fallen 50 percent over the last 12 months, as of Wednesday’s close. Investors have been selling GE shares amid questions about the company’s ability to grow. The company’s GE Capital and power businesses continue to drag on its performance but overall the report offered relief for GE after a tumultuous 12 months.

Flannery is in the midst of an extensive restructuring of the business, which could result in the sale or spinoff of parts of its portfolio. The industrial conglomerate is examining multiple ways to sell or spin off more than $20 billion in assets since October.

Unsubstantiated reports have claimed some big investors were beginning to analyze buying all or part of GE, with some speculating Warren Buffett was among those looking to invest. Buffett has denied the rumors, telling CNBC on May 4 that he simply wants to “the company to do well.” Like Peltz, Buffett complimented Flannery in his work at GE’s helm.

“I admire John Flannery and what he’s doing. He’s got a very tough job and he’s doing it very logically,” Buffett said in May.

— CNBC’s Dawn Giel and Leslie Picker contributed to this report.

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