General Electric climbed the most since spinning off its lending business after naming board member Lawrence Culp to replace John Flannery as chairman and chief executive officer, posts to which he was appointed only last year.

The Boston-based company's shares rose 10 percent to $12.40 in New York trading, paring the losses since Flannery took over as CEO in July 2017 to 54 percent.

Flannery was named chairman of the manufacturer's board on Oct. 2, almost exactly a year ago, when his predecessor, Jeffrey Immelt, left three months early. He had been working since to boost cash flow and profits while simplifying the sprawling conglomerate amid pressure from activist investor Trian Partners.

The new GE chief, who led industrial conglomerate Danaher Corp. for about 14 years, "might not change the facts of the current headwinds, but as we have noted many times, it is hard to refute Larry Culp's track record and accomplishments at Danaher," said Steven Winoker, an analyst with Swiss lender UBS.

Danaher's stock grew at five times the pace of the S&P 500 during Culp's tenure, and sales in high-growth global markets increased 10-fold.

While Flannery had garnered criticism for failing to halt a slide in GE's stock, Culp's appointment at GE came sooner than Goldman Sachs analyst Joe Ritchie expected, given that he only joined the manufacturer's board in April.

"This is the first time that GE has appointed an 'outside' CEO," Ritchie said, which raises the possibility that other non-GE executives may be selected for high-ranking posts. He also questioned whether the company might alter its streamlining plan or buoy its balance sheet by issuing new stock or making another dividend cut.

GE, once known for its leadership training strategies, has struggled in recent years. A sharp downturn in the electrical-generation market after Immelt's $10 billion acquisition of France-based Alstom SA's power business left it unable to meet cash-generation targets in 2017.

Flannery, who took over amid the fallout, "was largely a victim of his forthrightness in communicating about GE's problems as he uncovered them," said Jim Corridore, an analyst with CFRA Research. "Investors grew impatient with the lack of improvement and with the sheer scale of the problems uncovered; however, these problems were not created under his tenure."

Activist investor Trian, which holds a 0.8 percent stake in GE that has dropped by about half since its initial purchase, declined to comment on the change on Monday.

The firm's investment chief, Ed Garden, was given a seat on GE's board after Flannery became chairman and said at the time that Flannery had "impressed" him.

"I am disappointed by the recent performance of GE's stock, but I continue to believe that GE represents an attractive long-term value," Garden said in October 2017.

Garden has represented Trian on a number of corporate boards and was serving on Pentair Plc's when the London-based company split its electrical and water businesses into two new firms.

The investor had pushed for GE to improve its financial performance and return cash to investors, and Flannery announced a turnaround plan last November that included selling $20 billion of the company's businesses while cutting its 24-cent quarterly dividend in half.

The only original member of the Dow Jones industrial average still included in the 30-member blue chip index, GE was replaced in June by pharmacy chain Walgreens Boots Alliance.

A month later, the company said it had set aside $1.5 billion to cover potential fines in a Justice Department probe of high-risk mortgages handled by its lending business before the 2008 financial crisis.

The move followed settlements talks with the Justice Department in March, and GE based the amount in part on past government assessments against other lenders, Chief Financial Officer Jamie Miller said on a quarterly earnings call at the time.

The company explained earlier this year that it expected the department to claim WMC violated a 1989 finance law through the origination and sale of so-called subprime loans that were packaged into mortgage-backed securities from 2005 through 2007.

Also over the summer, Flannery said he would spin off GE's healthcare business and fully separate Baker Hughes, in which GE held a controlling interest after a merger with its oil and gas unit.

The manufacturer, founded by inventor Thomas Edison in the late 1800s, previously agreed to combine its locomotive division with Wabtec, and it remains committed to both transactions.

As recently as July, Flannery had reiterated a full-year profit target of as much as $1.07 a share, but GE said Monday it wouldn't meet that because of continuing weakness in its power business. The company also said it would probably write down the goodwill on that business by nearly $23 billion.

"GE remains a fundamentally strong company with great businesses and tremendous talent," Culp said in a statement. "We will be working very hard in the coming weeks to drive superior execution, and we will move with urgency."

Monday's stock market gains were the largest since April 2015, when Immelt, who chaired former President Barack Obama's jobs council, announced plans to spin off most of GE's lending business. The unit had accounted for a sizable portion of profits and revenue but weighed on the parent company's stock since the financial crisis.