Home > Boards > Free Zone > Industry Specific > Industrial Sector Ideas

>>> GE shares tumble 5% after CEO's pledge

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
gfp927z Member Profile
 
Followed By 63
Posts 24,122
Boards Moderated 74
Alias Born 03/22/05
160x600 placeholder
Johnson & Johnson Vaccine Pause Sparks Scrambles Across Country
Vaccination sites across the country canceled thousands of appointments after U.S. health authorities paused the use of Johnson & Johnson's Covid-19 shots Tuesday over reports of rare but severe blood clots, while other sites scrambled to switch to one of the two other authorized vaccines.
When Are Taxes Due? May 17 Is Tax Deadline Day for 2020 Taxes
Ketchup-Packet Savers Squeeze Them for Profits
J&J Covid-19 Vaccine Pause Poses Another Test for Balancing Pandemic Risks
How Amazon Strong-Arms Partners Using Its Power Across Multiple Businesses
JPMorgan Profit Soars After Bank Releases Reserves for Bad Loans -- 3rd Update
Form 8.3 - Willis Towers Watson Plc
Luxury Shares Soar in Europe as LVMH Sales Rebound -- 2nd Update
U.S. Stocks Edge Higher After S&P 500 Hits Record
Retail Sales Seen Rebounding -- Data Week Ahead
Wells Fargo Earnings Jump as Economy Bounces Back -- 2nd Update
Top Company News of the Day
Wells Fargo Earnings Jump as Economy Bounces Back -- Update
Sampo Oyj Sampo Plc: Disclosure Under Chapter 9 Section 5 Of The Securities Market Act (BlackRock, Inc.)
HSBC to Move Top Bankers to Hong Kong as Asia Focus Sharpens
Luxury Brands Are Helped By a Lack of Other Spending Options--Heard on the Street
European Union Orders Extra BioNTech-Pfizer Vaccines Amid J&J Suspension
Wells Fargo Earnings Jump as Economy Bounces Back
Denmark Stops Use of AstraZeneca's Covid-19 Vaccine Completely
Goldman Profit Rises Sharply on Strong Trading, Deal Making -- Update
Banks Log Negative Credit-Loss Provisions
EU Orders 50 Million More Covid-19 Vaccine Doses From Pfizer-BioNTech
gfp927z   Monday, 11/13/17 12:25:45 PM
Re: None
Post # of 82 
>>> GE shares tumble 5% after CEO's pledge for 'more focused' company fails to sway investors


CNBC

11-13-17


https://www.cnbc.com/2017/11/13/ge-announces-broad-restructuring-to-keep-health-care-aviation-and-energy-units.html


•General Electric announces it will cut its dividend in half as part of a broader corporate restructuring.

•It plans a renewed focus on health care, aviation and energy.

•CEO John Flannery apologizes on investor day for the company's performance and says GE would be "more focused."


General Electric set forth a new agenda on Monday as it tries to restructure its way back to stronger growth, with earnings estimates lower than Wall Street forecasts, a reduced dividend and an aggressive corporate restructuring.

The Boston-based 125-year-old industrial conglomerate also said it was cutting the number of seats on its board as part of what its chief executive called "a reset year" in 2018. GE also will be slicing 25 percent of staff from the home office.

Investors recoiled at the news about the dividend and restructuring, sending shares down nearly 6 percent in heavy trading.

"The GE of the future is going to be a more focused industrial company," CEO John Flannery said during his presentation at the company's investor day Monday. "It will leverage a lot of game-changing capabilities."

The event happened amid a plunging share price and as Flannery announced an "extremely painful" halving of the quarterly dividend to 12 cents a share. The restructuring plan said the dividend was set "with a path to grow going forward" but marks the largest cut by an S&P 500 during an nonfinancial crisis year.

"This is the opportunity really of a lifetime to reinvent an iconic company," Flannery added.

There will be a renewed focus on health care, aviation and energy, according to a presentation released for investors prior to the meeting. That's in contrast to the current wide-ranging set of interests that also includes media, railroads, chemicals, marine engines and banking.

For Flannery, it also represents a divergence in management style away from the high-flying aggressiveness of Jeff Immelt and Jack Welch.

"I was forced to confront a lot of the sort of deeper questions about the company," Flannery said. "What's the essence of the company I love so much?"

The company now sees adjusted earnings for the year ahead of $1 to $1.07 a share and free cash flow still at significantly reduced levels of $6 billion to $7 billion, which it pledged to improve. As expected, GE said it is looking to exit more than $20 billion of assets as it tries to sharpen its focus on "what makes a 'GE' business."

In addition, the company said it will "address overcapacity" and simplify its portfolio. While it slashed its dividend in half, the company also set a $3 billion share buyback priority. Addressing its pension plan shortfalls, Flannery said the company will borrow $6 billion to take advantage of the current rate environment.

The board of directors will be reduced from 18 to 12, with three new members slated "with relevant industry experience." Directors will have 15-year term limits.

"We have not performed well for our owners," Flannery said. "This is unacceptable, and the management team is completely devoted to doing what it takes to correct that."

Employee bonuses also will be restructured, with elimination of the three-year cash long-term performance awards and a switch to a program that conforms to "market norms."

The dividend allocation will be $4.2 billion for 2018, pushing it from above 100 percent of free cash flow to 60 percent to 70 percent, and the dividend yield from 4.7 percent to 2.3 percent. The yield had been the highest in 30 years not counting the financial crisis.

<<<


Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences