lowered the dividend to a symbolic amount, saying that the federal authorities had instituted a criminal investigation of their accounting practices as the embattled conglomerate under new CEO Larry restructure wool culp. Executives said Tuesday that the Department of Justice has launched an investigation into the company's recent accounting practices, along with a recent investigation by the Securities and Exchange Commission. GE has also stated that the SEC has broadened the scope of its investigation.
Both the Department of Justice and the SEC are investigating a $ 22 billion fee that the company has committed to GE unit acquisitions in the third quarter, as well as a $ 6 billion fee. In the first quarter, GE's chief financial officer announced Jamie Miller on Tuesday in a conference call to investors a shortfall in insurance reserves.
GE reported a net loss of $ 22.8 billion in the third quarter due to a $ 22 billion burden on the company's problems. Mr. Culp took over on October 1
Investors had agreed to further reduce the company's once-reliable dividend. The company's new quarterly dividend will be 1 cent per share, after 12 cents. The move saves the company $ 3.9 billion a year and represents a reversal of a company that was once one of the most generous dividend payers.
GE, once a powerful industrial giant, has been struggling with declining sales and gains over the past year, forcing the conglomerate to break itself apart and bring in an outside CEO. While plans for the sale or spin-off of three large units are in progress, GE's core business has continued to deteriorate.
Mr Culp said at the conference call on Tuesday that the overall strategy set in June is "the right plan". and GE had no plans to sell shares to raise additional capital. However, he said drastic changes in the electricity business are necessary, which Mr. Culp said he plans to divide into two units. "Everything is on the table," he said.
Turnover in the aggregate fell 33% to $ 5.74 billion last quarter, and the unit went into operating loss. Overall, GE said that revenue in the third quarter declined 4% to $ 29.57 billion as aerospace and energy growth offset part of the decline in power generation.
Excluding charges, GE reported a profit of 14 cents per share. On this basis, according to Thomson Reuters Wall Street reckoned with an adjusted profit of 20 cents per share and a turnover of 29.92 billion USD.
When GE changed CEOs earlier this month, GE warned that up to $ 23 billion would accrue for earlier acquisitions in the power business that produces power generation turbines in power plants. The centuries-old business has suffered huge losses as a result of the global decline in demand for electricity generating plants.
The Power Division, which was GE's largest source of revenue, was at the center of GE's financial and operational problems. The company has reduced thousands of jobs to adapt to the market, but GE has said it will take years for the division to get back on track. Www.celesio.com/ag/?redirect=true&n…id=4&nx=1665 GE said it could save further costs by consolidating its corporate functions in the generator set on Tuesday. Miller said the company would clearly miss its financial targets for 2018, without providing any new forecasts. She warned that problems in the electricity business would last longer than expected and that GE might need to provide additional support for its GE Capital division.
GE has reduced its dividend, as the cash raised by the company from its power and other industrial companies dried up. In the first nine months, the industrial business generated adjusted cash flow of $ 335 million. Previously, GE had forecast cash flow of approximately $ 6 billion for the year, compared to $ 9.7 billion the year before and $ 11.6 billion in 2016.
GE has cash flow or cash flow Company financial goals not updated for the full year. Mr. Culp said the company will provide investors with an update in early 2019.
GE announced plans to divide the power generation division into two units, one for its gas turbines and associated services and another for steam and nuclear power along with equipment and services for the distribution of electricity.
Last month, GE announced a flaw in its latest power plant turbines after being an important part of fancy and forced customers
to shut down two Texan plants. GE has repaired the turbine fleet.
The aviation business, which produces jet engines, remains the brightest spot amid healthy demand for its latest model from companies like
and Airbus. According to GE, revenue increased 12% to $ 7.4 billion and segment profit grew 25%. Equipment orders increased by 35% over the previous year.
GE said it will continue to focus on "shrinking and deleveraging GE Capital, the company's financial services division. GE has significantly reduced the division in recent years, but this year it has still been a source of problems, including the need to increase the insurance reserves of its insurance portfolio by $ 15 billion.
The Boston-based company has already announced plans to divest its locomotive-related transportation business and divide its healthcare center manufacturing MRI equipment and hospital equipment. It also said it was planning to sell its 63% stake in
Oilfield Services Provider
In the third quarter, healthcare and transportation sales and earnings were about the same as a year ago. GE said on Tuesday that it will complete the sale of its transportation business
At the beginning of 2019, however, the sale was completed earlier. There was no update of plans for participation in Baker Hughes.
GE shares rose four cents to $ 11.20 on Tuesday. The stock closed at $ 11.16 on Monday and nearly 50% in the last 12 months. GE was removed from the Dow Jones Industrial Average earlier this year.
Write to Thomas Gryta at [email protected]