Photo By: Momoneymoproblemz via Wikimedia Commons

General Electric's (GE) announcement of its turnaround plans has led to a seven-percent slide in shares, its worst single-day decline in eight years.The turnaround involves the cutting of dividends in half and a reinvigorated focus on health care, aviation, and energy.GE CEO John Flannery apologized for GE's performance and assured investors that it will be more focused next year, which the company dubbed as the "reset year."

The seven-percent decrease has been the company's worst since April 2009 after GE suffered setbacks from the housing recession's impact, and Flannery viewed the situation as a chance for GE to reinvent itself.The American multinational giant renewed its attention toward healthcare, aviation, and energy and views this as a complete departure from the usual interests involving media, railroads, chemicals, marine engines and banking.Flannery added that the said focus will allow the company to differentiate itself from Jeff Immelt and Jack Welch's aggressiveness.

CNBC relayed GE's series of adjusted earnings for 2017 ahead of $1 to $1.07 a share and a free cash flow which is still at critically decreased levels of $6 billion to $7 billion, an area that GE guarantees to improve.The company looks forward to generating more than $20 billion of assets as it seeks to recalibrate its focus.

GE is also set to deal with overcapacity issues, simplify its portfolio, and establish a $3 billion share buyback priority.In terms of dealing with overcapacity issues, the company is set to decrease the number of board of directors, who will have 15-year term limits, from 18 to 12 members.

[ 저작권자 © 아시아뉴스통신. 무단 전재 및 재배포금지]

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