General Electric on Tuesday announced third-quarter results that fell short of Wall Street estimates and said it was cutting its dividend and restructuring its struggling power business. Shares were up more than 2% following the news.
The conglomerate reported adjusted earnings of $0.14 a share on revenue of $29.57 billion, missing the $0.20 and $30.25 billion that analysts surveyed by Bloomberg were expecting.
GE said it would slash its dividend to $0.01 a share — from $0.12 — saving it approximately $3.9 billion of cash a year. The company will also take a pretax $22 billion noncash goodwill impairment charge related to GE Power and split the unit in two — a unified Gas business and a second unit made up of the portfolio of GE Power’s steam, grid solutions, nuclear, and power conversion assets.