The following is an excerpt from Lewis Krauskopf, Dan Burns | October 30, 2018 | reuters.com |
NEW YORK (Reuters) - General Electric Co shareholders were dealt yet another blow on Tuesday.
The U.S. industrial conglomerate said it would restructure its power unit, and said it faced a deeper accounting probe as new Chief Executive Larry Culp moved to try to revive the struggling company.
GE shares were down 10 percent, dropping below $10 to touch their lowest point since early 2009. Shares of GE, which was booted from the blue-chip Dow Jones Industrial Average earlier this year, are now down more than 40 percent this year and have lost two-thirds of their value since the end of 2016.
For longtime shareholders, Tuesday’s third-quarter report delivered another bitter pill. Cash-needy GE all but eliminated its quarterly dividend, slashing it to a penny a share from 12 cents.
The dividend cut marks a major shift for GE, whose shares regularly offered a higher dividend yield than the S&P 500 for about the past 15 years.
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