GE says Q3 loss compares with profits of $1.3bn in the year-ago period and is due to a $22bn write-down
General Electric reported a third-quarter loss of $22.8 billion Tuesday following a large asset write-down and cut most of its dividend as it seeks a turn-around under a new chief executive.
The loss compares with profits of $1.3 billion in the year-ago period and is due to a $22 billion write-down announced when GE tapped H Lawrence Culp as chief executive earlier this month. GE slashed its quarterly dividend from 12 cents to a penny.
Revenues fell 3.6 percent $29.6 billion.
The results come on the heels of a steep downturn in GE's power business, which has been beset by overcapacity due in part to the growth of renewable energy sources that has dented demand for GE's turbines.
GE, under former Chief Executive John Flannery, announced job cuts and a reorganization of the power business. But Flannery was replaced October 1 due to investor frustration with GE, which was thrown out of the prestigious Dow index.
Culp signaled more change ahead for the troubled power division, announcing plans to split power into two units, one focusing on gas and industrial services and the other comprising steam, grid solutions, nuclear and power conversion.
"We will heighten our sense of urgency and increase accountability across the organization to deliver better results," Culp said.
"My priorities in my first 100 days are positioning our businesses to win, starting with power, and accelerating deleveraging," he added. "We are moving with speed to improve our financial position, starting with the actions announced today."
Shares of GE rose 1.2 percent to $11.22 in pre-market trading.