GE: posts huge loss on impairment charge, cuts dividend
(CercleFinance.com) - GE's loss totaled 22.
8 billion dollars in the third quarter, after the company recorded a 22 billion dollar impairment charge related to GE Power, compared with a profit of 1.3 billion dollars a year ago, the company said on Tuesday.
GE reported a loss per share from continuing operations of 2.63 dollar, compared with a profit of 16 cents per share a year earlier.
Total revenue in the quarter fell by 5% to 29.5 billion dollars, from 30.6 billion dollars a year ago.
Earlier this month GE said that it would book a non-cash goodwill impairment charge related to the power business, for which the goodwill balance is estimated at 23 billion dollars.
The group said it intends to reorganize its power division, creating two units — a business combining GE's gas product and services, and a second unit including other assets such as steam, grid Solutions, nuclear and power conversion.
Most importantly, GE plans to cut its quarterly dividend from 0.12 dollar to 0.01 dollar, which will enable the company to retain 3.9 billion dollars of cash per year.
Shares were up 0.4% in early morning trading.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
8 billion dollars in the third quarter, after the company recorded a 22 billion dollar impairment charge related to GE Power, compared with a profit of 1.3 billion dollars a year ago, the company said on Tuesday.
GE reported a loss per share from continuing operations of 2.63 dollar, compared with a profit of 16 cents per share a year earlier.
Total revenue in the quarter fell by 5% to 29.5 billion dollars, from 30.6 billion dollars a year ago.
Earlier this month GE said that it would book a non-cash goodwill impairment charge related to the power business, for which the goodwill balance is estimated at 23 billion dollars.
The group said it intends to reorganize its power division, creating two units — a business combining GE's gas product and services, and a second unit including other assets such as steam, grid Solutions, nuclear and power conversion.
Most importantly, GE plans to cut its quarterly dividend from 0.12 dollar to 0.01 dollar, which will enable the company to retain 3.9 billion dollars of cash per year.
Shares were up 0.4% in early morning trading.
Copyright (c) 2018 CercleFinance.com. All rights reserved.