GE CEO says company needs to reduce debt 'thoughtfully and soon'
(Reuters) - General Electric Co has too much debt and needs to reduce it 'thoughtfully and soon', Chief Executive Officer Lawrence Culp said in a letter to shareholders on Tuesday.
(Reuters) - General Electric Co has too much debt and needs to reduce it "thoughtfully and soon", Chief Executive Officer Lawrence Culp said in a letter to shareholders on Tuesday.
On Monday, the company said it would sell its biopharma business to Danaher Corp for $21.4 billion as the industrial conglomerate reduces its debt pile, which stood at $121 billion at the end of December.
Since taking over as CEO last year, Culp has taken a string of steps, including slashing the company's dividend to just a penny a share and selling assets at the 126-year-old, Boston-based conglomerate.
"We have more options available to us down the line to generate cash to help bring down our leverage, including our remaining interests in Baker Hughes and Wabtec Corporation and continued flexibility for our go-forward Healthcare business," Culp wrote in the letter https://www.ge.com/investor-relations/sites/default/files/GE_AR18_Letter.pdf.
General Electric has reduced its stake in oil-services firm Baker Hughes and will sell nearly half of its healthcare unit, the company said.
"We intend to maintain a disciplined financial policy, targeting a sustainable credit rating in the single-A range ... ultimately a dividend level in line with our peers," Culp said.
Culp made the power business one of his top priorities, reorganizing the division by separating gas-turbine business from units that make coal- and nuclear-fuelled power plants, power grids and other equipment.
The company lost two-thirds of its market value in the last two years amid a series of operational and investment missteps.
"2019 will be a year of change for Power in particular," Culp added.
(Reporting by Uday Sampath and Ankur Banerjee in Bengaluru; Editing by Lisa Shumaker and Shinjini Ganguli)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut
By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.
By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son