The US corporation General Electric cut its quarterly dividend to 1 cent per share and said it plans to split its energy business in two after the new CEO, Lawrence Culp, took his first steps to revitalize the conglomerate. The company made a serious stake on fossil fuels, but still working on debt reduction and revival of stock prices.
The revenue and profit declined over the years, partly due to GE’s withdrawal from financial firms, focusing on jet engines, power plants, and renewable energy.
The company reported a loss of 22.8 billion USD for the third quarter of 2018, mainly due to the negative results of GE Power.
Overall, GE lost 2.63 USD per share, compared to a profit of 0.16 USD per share last year, with revenue down by 4% to 29.6 billion USD.
The renewable energy business reported a 72% decline to 60 million USD, compared with 217 million USD in the same period in 2017.
The aviation unit posted sales revenue of 7.5 billion USD, which represents an increase of 12% yoy. The profit marks an increase of 25% over the same period in 2017 to 1.7 billion USD.
The fossil fuel division also provides positive results. The revenues rose by 7% to 5.670 billion USD in July-September. The profit also rose by 18% to 247 million USD.
The healthcare unit reported revenue of 4.707 billion USD for the third quarter of the year, where there was no difference in size compared to the previous year. The profit, however, rose by 2% to 861 million USD.
The company’s transport business posted a 2% drop in revenue to 932 million USD, with profits for the July-September period up by 15% to 162 million USD.
GE Lighting reported an 18% decline in revenue to 385 million USD, while profit grew by 86% to 26 million USD.
Corrected earnings have fallen to 0.14 USD per share of 0.21 USD per share an year earlier, analysts predicting their value in the third quarter would be 0.20 USD per share.
GE has announced it will separate its gas turbine unit from its core energy business without changing its annual profit forecast, even against the backdrop of lower analyst expectations.