At G.E., $6.2 Billion Charge for Finance Unit Hurts C.E.O.’s Turnaround Push<br />said, GE Capital would suspend dividend payments to the parent company for the “foreseeable future.” To conserve<br />cash, Mr. Flannery cut G. E.’s dividend last year, only the second time since the Depression that had happened.<br />In a conference call with analysts, Mr. Flannery emphasized<br />that his main focus was bolstering the strength and performance of G. E.’s three main businesses: power generation, aviation and health care.<br />“Our results, over the past several years, including 2017, and the insurance charge only further my belief<br />that we need to continue to move with purpose to reshape G. E.,” Mr. Flannery said.<br />Mr. Flannery did say on Tuesday that G. E.<br />would explore different potential ownership structures for the remaining units, as it did with its oil-field equipment business last year.<br />As for the $6.2 billion fourth-quarter write-off, G. E.<br />said it was making the move after conducting a review of the insurance portfolio that is part of GE Capital, the finance arm.<br />He has previously said the company would sell at least $20 billion in assets over the next two years, with lighting<br />and railway-locomotive businesses going on the block.<br />He added that the anticipated costs were manageable, would be “contained within GE Capital”<br />and would have no effect on investment in the company’s industrial businesses.
