General Electric plans to cut 12,000 jobs in its power division as the industrial conglomerate's new CEO institutes sweeping changes and the company grapples with a decline in business for coal and natural gas products.
As alternative energy encroaches on traditional power business models, margins could fall regardless of cost outs. GE remains a Sell until management can rightsize Power and meet goals for cost outs and free cash flow.
GE announced details for the upcoming quarterly dividend payment of $0.12 (a 50% hair cut) and, on the same day, disclosed that 12,000 people from the Power division (~20% of the operating segment's work force) are out of a job.
It also gave GE a larger installed base of plants to service. But the deal came just as demand for new power plants was slowing, in part due to competition from cost-competitive wind and solar systems.
There are many challenges facing GE shareholders but the first one is the technical picture of the chart. We can see the extent of the damage that has occurred just in 2017 as GE has been nearly cut in half this year. In addition to that, GE's 200DMA ...