GE to exit light bulb business

General Electric sliced its dividend in half Monday, saving the beleaguered industrial giant $4.2 billion annually as it seeks to regain its footing after more than a decade of lagging profits and poor stock performance.

Shareholders will see their payments on each share drop from 24 cents a quarter to 12 cents, just the third time the company has cut the payout in its 125-year history. The reduction comes as the manufacturing conglomerate put in motion a sweeping overhaul that includes plans to revamp its board of directors and sell off business units, including its storied lighting business that dates to its founder, Thomas Edison.

GE’s stock price dropped about 7 percent Monday to close at $19.02 a share.

General Electric Chief Executive Officer John Flannery said the decision was made to bolster the company’s cash holdings. GE’s estimated $7 billion in cash flow this year could not by itself cover the $8.4 billion dividend payout.

Flannery said the company would build its future around its aviation, health care and power segments. It will jettison most everything else. Those other parts include a locomotive business, a large investment in oil exploration company Baker Hughes and GE’s light bulb business.