GE reduces its dividend to one cent and its profit is insufficient

The troubled US group General Electric announced on Tuesday that its third quarter business figure was not meeting Wall Street expectations and that it was reducing its dividend.

GE reported revenue of $ 29.57 million, lower than the forecast of $ 29.92 million from analysts.

GE's third quarter earnings per share were $ 0.14 adjusted, down from the $ 0.20 expected by Wall Street.

The former Dow component announced that it would reduce its quarterly dividend to $ 0.01 per share as of December, which would allow it to retain $ 3.9 billion in cash per year compared to the previous year. previous distribution level.

The news of the disappointing results was followed by a rise in the price of GE's pre-market action by nearly a dollar.

In addition, GE said it was going to divide its troubled power business into two units.

The results are the first for Larry Culp, 55, who was appointed President and Chief Executive Officer on October 1, replacing John Flannery.

Culp commented on the results, saying "GE is a fundamentally sound company" and "is on track to create a more focused portfolio and strengthen the balance sheet".

"We are on track to create a more focused portfolio and strengthen our balance sheet. In my first 100 days, my priorities are positioning our companies to win, starting with Power, and accelerating deleveraging. We are progressing rapidly to improve our financial situation, starting with the actions announced today. I look forward to informing you of our progress in early 2019, "said Culp.