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Obama bailout recipient GE shares plunge 7% for biggest decline since housing recession after turnaround plan unveiled
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Leroy N. Soetoro
Nov 13, 2017, 6:22:28 PM11/13/17
to
https://www.cnbc.com/2017/11/13/ge-announces-broad-restructuring-to-keep-
health-care-aviation-and-energy-units.html
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 7.2 percent Monday in heavy trading. The selling
pressure picked up as the trading day went on with the shares down as much
as 8.5 percent at one point.
It was the stock's worst single-day decline since April 2009 when the
company was still caught in the throes of the housing recession.
"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.
WATCH: Jim Cramer: Owning General Electric is one of the biggest mistakes
of my career
--
Donald J. Trump, 304 electoral votes to 227, defeated compulsive liar in
denial Hillary Rodham Clinton on December 19th, 2016. The clown car
parade of the democrat party has run out of gas.
Congratulations President Trump. Thank you for ending the disaster of the
Obama presidency.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp.
ObamaCare is a total 100% failure and no lie that can be put forth by its
supporters can dispute that.
Obama jobs, the result of ObamaCare. 12-15 working hours a week at minimum
wage, no benefits and the primary revenue stream for ObamaCare. It can't
be funded with money people don't have, yet liberals lie about how great
it is.
Obama increased total debt from $10 trillion to $20 trillion in the eight
years he was in office, and sold out heterosexuals for Hollywood queer
liberal democrat donors.
health-care-aviation-and-energy-units.html
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 7.2 percent Monday in heavy trading. The selling
pressure picked up as the trading day went on with the shares down as much
as 8.5 percent at one point.
It was the stock's worst single-day decline since April 2009 when the
company was still caught in the throes of the housing recession.
"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.
WATCH: Jim Cramer: Owning General Electric is one of the biggest mistakes
of my career
--
Donald J. Trump, 304 electoral votes to 227, defeated compulsive liar in
denial Hillary Rodham Clinton on December 19th, 2016. The clown car
parade of the democrat party has run out of gas.
Congratulations President Trump. Thank you for ending the disaster of the
Obama presidency.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp.
ObamaCare is a total 100% failure and no lie that can be put forth by its
supporters can dispute that.
Obama jobs, the result of ObamaCare. 12-15 working hours a week at minimum
wage, no benefits and the primary revenue stream for ObamaCare. It can't
be funded with money people don't have, yet liberals lie about how great
it is.
Obama increased total debt from $10 trillion to $20 trillion in the eight
years he was in office, and sold out heterosexuals for Hollywood queer
liberal democrat donors.
#BeamMeUpScotty
Nov 13, 2017, 8:28:06 PM11/13/17
to
On 11/13/2017 06:22 PM, Leroy N. Soetoro wrote:
> https://www.cnbc.com/2017/11/13/ge-announces-broad-restructuring-to-keep-
> health-care-aviation-and-energy-units.html
>
> 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.
I remember saying a long time ago when the CEO at GE started sucking up
> https://www.cnbc.com/2017/11/13/ge-announces-broad-restructuring-to-keep-
> health-care-aviation-and-energy-units.html
>
> 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.
to Obama that he would end up trashing the company.
It's a bit surreal, I knew that GE would have problems down the road but
this is way faster than I figured on it happening. They were all over
the Obama Socialist stuff and I thought it was maybe to save their
nuclear stuff but it went deeper and they seemed to be doing what ever
Obama wanted, it was strange, like it was ideological and GE thought
that Obama's Socialism was going to succeed. They put all their eggs in
that Obama Basket and failed to produce any dividends for the company.
--
That's Karma
*Rumination*
16 - Seeing problems before they arrive is as valuable as knowing what
the solutions are, after they are here. Liberalism creates crisis so
they can tell you they have the solution.
#BeamMeUpScotty
Nov 13, 2017, 8:32:55 PM11/13/17
to
On 11/13/2017 06:22 PM, Leroy N. Soetoro wrote:
> https://www.cnbc.com/2017/11/13/ge-announces-broad-restructuring-to-keep-
> health-care-aviation-and-energy-units.html
>
> 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.
> health-care-aviation-and-energy-units.html
>
> 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.
I remember saying a long time ago when the CEO at GE started sucking up
to Obama that he would end up trashing the company. They bought into the
Obama Liberal/Marxist scam.
It's a bit surreal, I knew that GE would have problems down the road but
this is way faster than I figured on it happening. They were all over
the Obama Socialist stuff and I thought it was maybe to save their
nuclear stuff but it went deeper and they seemed to be doing what ever
Obama wanted, it was strange, like it was ideological and GE thought
that Obama's Socialism was going to succeed. They put all their eggs in
that Obama Basket and failed to produce any dividends for the company.
to be going along with Obama's take over..... They were all in. Now
they're in too deep.
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