GE cut its dividend for only the second time since the Great Depression

By | 14.11.2017
FILE PHOTO: The General Electric logo is pictured on working helmets during a visit at the General Electric offshore wind turbine plant in Montoir-de-Bretagne, near Saint-Nazaire, western France, November 21, 2016. REUTERS/Stephane Mahe/File Photo GLOBAL BUSINESS WEEK AHEAD - SEARCH GLOBAL BUSINESS 17 APR FOR ALL IMAGES

General Electric has slashed its quarterly dividend for only the second time since the Great Depression, as new CEO John Flannery, on the job since August, tries to reshape the 125-year-old conglomerate.

Published November 13, 2017  |  Photo by Reuters/Stephane Mahe
FILE PHOTO: The General Electric logo is pictured on working helmets during a visit at the General Electric offshore wind turbine plant in Montoir-de-Bretagne, near Saint-Nazaire, western France, November 21, 2016. REUTERS/Stephane Mahe/File Photo GLOBAL BUSINESS WEEK AHEAD - SEARCH GLOBAL BUSINESS 17 APR FOR ALL IMAGES

50%

GE expects to save $4 billion a year by reducing its payout from 24 cents to 12 cents per share. The last cut was during the financial crisis.

FILE PHOTO: The General Electric logo is pictured on working helmets during a visit at the General Electric offshore wind turbine plant in Montoir-de-Bretagne, near Saint-Nazaire, western France, November 21, 2016. REUTERS/Stephane Mahe/File Photo GLOBAL BUSINESS WEEK AHEAD - SEARCH GLOBAL BUSINESS 17 APR FOR ALL IMAGES

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Flannery also announced a major restructuring. Current businesses include lighting, software, and banking, but he wants to focus on three business units: energy, healthcare, and aviation.

FILE PHOTO: The General Electric logo is pictured on working helmets during a visit at the General Electric offshore wind turbine plant in Montoir-de-Bretagne, near Saint-Nazaire, western France, November 21, 2016. REUTERS/Stephane Mahe/File Photo GLOBAL BUSINESS WEEK AHEAD - SEARCH GLOBAL BUSINESS 17 APR FOR ALL IMAGES

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Flannery has his work cut out: he called GE’s disappointing third quarter results “horrible.”

Published November 13, 2017

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