General Electric Co.’s (GE.N) new boss wants to reassure shell-shocked investors that he knows just how tough the past year has been -- and that he has a plan to turn things around.

In his first annual shareholder letter, Chief Executive Officer Larry Culp outlined his priorities as he tries to pull the iconic manufacturer out of a tailspin. After a chaotic 2018 marked by “weak execution,’’ Culp said he is looking to revamp the company’s power business and reduce debt.

“We are putting GE on firmer financial footing,” he said in the letter, which was released late Tuesday along with the company’s annual report. “Simply put, we have too much debt and we need to reduce it thoughtfully and soon. Once we put our balance sheet in a healthier place, we’ll be in a better position to play offense across all our businesses.”

Culp is attempting to regain investor confidence as GE tries to recover from one of the worst slumps in its 127-year history. The new CEO, who took the helm in October after the surprise ouster of John Flannery, has sought to improve financial transparency, reduce risk, boost cash and reshape the portfolio. He highlighted those priorities with a deal this week to sell GE’s bio-pharmaceutical business for US$21.4 billion.

Investors have cheered the recent moves. The shares rose 2.5 per cent to US$10.66 on Tuesday, bringing this year’s gain to 46 percent -- the best performance on a Standard & Poor’s sub-index of U.S. industrial companies.

Power ‘Change’

That’s a big turnaround from last year, when cash shortfalls and weak demand for gas turbines helped drag the shares down 57 percent.

This will be “a year of change” for GE’s ailing power-equipment business, said Culp, who has already announced a reorganization of the unit. GE is looking to cut costs, improve operations and increase the accountability of the division.

“If we want to run more empowered and accountable businesses, we need to radically change how we operate across GE,” Culp said.