GE makes rare cut in dividend

GE said it would cut its quarterly dividend to $0.10 (�0.07) per share from an originally planned $0.30 - a 68% reduction.

GE, which had long resisted cutting its divided, said the move would save it $9bn a year.

The news hit the company's share price, with stocks sinking 6.5% to $8.51.

"We recognise the importance of the dividend to our shareholders and the significance of this decision," said GE Chief Executive Jeff Immelt.

"The revised dividend is competitive and reflects what we believe is an appropriate payout in today's market," Mr Immelt said.
 

GE's problems mainly stem from its finance unit GE Capital, which makes a wide variety of loans including mortgages.

However, the wider economic downturn has also hit its industrial unit, which makes aircraft engines, home appliances, light bulbs and wind turbines.

Several US blue-chip firms, including JP Morgan and Textron, have cut dividend payments to preserve capital.

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