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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, agency reports.
Revenues fell 3.6 percent $29.6 billion.
The slumping power business also reported lower revenues compared with the year-ago period.
But revenues were higher in most of GE’s other segments, including aviation and health care, two segments that have held up well in recent years.
Revenues also increased in oil and gas, a division that had sputtered until recently.
Culp, addressing investors for the first time during an earnings conference call, said GE continues to enjoy strong talent and technology assets, but that the company needs to pivot.
“We need to focus more on customers and competition and frankly less on corporate,” he said, adding that he would emphasize strong daily management as CEO.
GE’s big problem continues to be the power division, 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 has described the weak market conditions in power as a multi-year issue
and signaled again Tuesday that demand remained weak.
Adding to those woes in September was a technical glitch that temporarily
shuttered new plants installed in Texas. Worries about the problem sent
shares to multi-year lows that only began to turn around when GE announced
Culp’s appointment on October 1.