General Electric Q3 Adj. EPS Down 33%; Cuts Quarterly Dividend To $0.01

(RTTNews) - General Electric Co (GE) reported that its third-quarter adjusted Industrial EPS declined 38% year-over-year to $0.13 from $0.21. Adjusted Industrial earnings were $1.16 billion, down 36% from prior year. Adjusted EPS was $0.14 compared to $0.21. Adjusted earnings declined 35% to $1.18 billion. On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $0.20 for the quarter. Analysts' estimates typically exclude special items.

For the third-quarter, General Electric Co reported a loss per share from continuing operations of $2.63 compared to profit of $0.16, previous year. The company recorded a non-cash goodwill impairment charge of $22 billion, before tax, related to GE Power.

For the third-quarter, total revenues were $29.57 billion, down 4% from prior year. GE Industrial segment organic revenues increased 1% to $28.06 billion. Analysts expected revenue of $29.92 billion for the quarter.

The company also announced immediate actions to strengthen its balance sheet. First, GE plans to reduce its quarterly dividend from $0.12 to $0.01 per share beginning with the Board's next dividend declaration, which is expected to occur in December 2018. The change will allow GE to retain approximately $3.9 billion of cash per year compared to the prior payout level.

GE also intends to reorganize Power to accelerate the business' operating and financial improvements. The company plans to create two units — a unified Gas business combining GE's gas product and services groups, and a second unit constituting the portfolio of GE Power's other assets including Steam, Grid Solutions, Nuclear, and Power Conversion.