At G.E., $6.2 Billion Charge for Finance Unit Hurts C.E.O.’s Turnaround Push
- 6 years ago
At G.E., $6.2 Billion Charge for Finance Unit Hurts C.E.O.’s Turnaround Push
said, GE Capital would suspend dividend payments to the parent company for the “foreseeable future.” To conserve
cash, Mr. Flannery cut G. E.’s dividend last year, only the second time since the Depression that had happened.
In a conference call with analysts, Mr. Flannery emphasized
that his main focus was bolstering the strength and performance of G. E.’s three main businesses: power generation, aviation and health care.
“Our results, over the past several years, including 2017, and the insurance charge only further my belief
that we need to continue to move with purpose to reshape G. E.,” Mr. Flannery said.
Mr. Flannery did say on Tuesday that G. E.
would explore different potential ownership structures for the remaining units, as it did with its oil-field equipment business last year.
As for the $6.2 billion fourth-quarter write-off, G. E.
said it was making the move after conducting a review of the insurance portfolio that is part of GE Capital, the finance arm.
He has previously said the company would sell at least $20 billion in assets over the next two years, with lighting
and railway-locomotive businesses going on the block.
He added that the anticipated costs were manageable, would be “contained within GE Capital”
and would have no effect on investment in the company’s industrial businesses.
said, GE Capital would suspend dividend payments to the parent company for the “foreseeable future.” To conserve
cash, Mr. Flannery cut G. E.’s dividend last year, only the second time since the Depression that had happened.
In a conference call with analysts, Mr. Flannery emphasized
that his main focus was bolstering the strength and performance of G. E.’s three main businesses: power generation, aviation and health care.
“Our results, over the past several years, including 2017, and the insurance charge only further my belief
that we need to continue to move with purpose to reshape G. E.,” Mr. Flannery said.
Mr. Flannery did say on Tuesday that G. E.
would explore different potential ownership structures for the remaining units, as it did with its oil-field equipment business last year.
As for the $6.2 billion fourth-quarter write-off, G. E.
said it was making the move after conducting a review of the insurance portfolio that is part of GE Capital, the finance arm.
He has previously said the company would sell at least $20 billion in assets over the next two years, with lighting
and railway-locomotive businesses going on the block.
He added that the anticipated costs were manageable, would be “contained within GE Capital”
and would have no effect on investment in the company’s industrial businesses.