GE hires a retired executive and appoints executives for a failed production unit

(Reuters) – General Electric Co on Monday named new executives for its troubled power business, appointing Scott Strazik as CEO of the gas industry, and recalled GE's retired executive John Rice an advisory role.

The changes come as GE's new chief executive officer, Larry Culp, tries to quickly reduce the heavy debt and restore the profits of the 126-year-old conglomerate in Boston, and highlights the problems in the electricity division of GE.

"One of my top priorities is to position our companies for what they earn, starting with GE Power," Culp said in a statement.

GE's stock was down slightly to $ 8.01 in morning trading.

Russell Stokes, the current CEO of GE Power, will become Chief Executive Officer of other energy-related activities, including nuclear and coal, steam, transmission systems and energy conversion.

Strazik had been CEO of the Electrical Services Sector, which oversees the repair and maintenance of electrical equipment.

Rice, a 39-year-old GE veteran who ran his energy unit and retired in December, will advise Strazik, GE said.

The three leaders will report to Culp, said GE.

Last month, GE announced the separation of the gas genset from the rest of its business so that the group could be given special attention by management.

GE Power's profits plummeted as gas turbine demand was well below expectations, leaving GE and rivals Siemens and Mitsubishi Hitachi Power Systems with excess capacity and lower sales.

GE Power recorded a loss of $ 631 million and wrote off a $ 22 billion gain in the third quarter, reflecting the gloomy outlook for future earnings.