GE ANNOUNCES THIRD QUARTER 2018 RESULTS|
Thursday, January 31, 2019 6:30:00 AM ET
BOSTON – October 30, 2018 - GE (NYSE:GE) announced results today for the quarter ended September 30, 2018. The Company reported a loss
of $2.63 per share from GAAP continuing operations. As summarized in the attached reconciliation, adjusted earnings per share (non-GAAP) were
$0.14, down 33 percent from the same period in 2017. The Company recorded a non-cash goodwill impairment charge of $22 billion, before tax,
related to GE Power.
The Company also announced immediate actions to strengthen its balance sheet and position its businesses for success.
First, GE plans to reduce its quarterly dividend from $0.12 to $0.01 per share beginning with the Board’s next dividend declaration, which is
expected to occur in December 2018. This change will allow GE to retain ~$3.9 billion of cash per year compared to the prior payout level.
Second, GE intends to reorganize Power to accelerate the business’ operating and financial improvements. GE plans to create two units — a
unified Gas business combining GE’s gas product and services groups, and a second unit constituting the portfolio of GE Power’s other assets
including Steam, Grid Solutions, Nuclear, and Power Conversion. The Company also intends to consolidate Power’s headquarters structure to
ensure these units can best serve their customers.
GE Chairman and CEO H. Lawrence Culp Jr. said, “After my first few weeks on the job, it’s clear to me that GE is a fundamentally strong company with
a talented team and great technology. However, our results are far from our full potential. We will heighten our sense of urgency and increase
accountability across the organization to deliver better results.
“We are on the right path to create a more focused portfolio and strengthen our balance sheet. My priorities in my first 100 days are positioning our
businesses to win, starting with Power, and accelerating deleveraging. We are moving with speed to improve our financial position, starting with the
actions announced today. I look forward to updating you further on our progress in early 2019.”
For the full press release, please go here