GE takes $22B charge in Q3

General Electric slashed its quarterly dividend and announced it will restructure its power business, as the industrial conglomerate struggles with sagging profits and a spate of bad news.

The company announced a $22 billion charge in its power division and swung to a third-quarter loss that was bigger than most industry analysts had expected.

The company on Tuesday cut its dividend to a penny, from 12 cents per share, a move that could hurt individual investors who rely on income from dividends.

But cutting the dividend will allow the company to keep about $3.9 billion in cash each year, the company said.

“It has become clear to us that we need to simplify the business structure,” said GE CEO Larry Culp in a conference call with investors.

“GE has considerable strengths. The talent here is real. The technology is special. And the global reach of the GE brand and our global relationships are truly impressive. But GE needs to change. Our team knows this,” said Culp, who last month replaced John Flannery as CEO after only a year on the job.

The Securities and Exchange Commission and Department of Justice are both investigating GE’s $22 billion write-down, said GE Chief Financial Officer Jamie Miller, adding to ongoing investigations into previous problems at GE.