By Cara Lombardo

General Electric Co. will cut its dividend in half for the first time since the financial crisis, the company said Monday, as the 125-year-old industrial conglomerate seeks to refocus under new Chief Executive John Flannery.

The new quarterly dividend will be 12 cents per share, down from 24 cents a share. The change will be effective the next time a dividend is declared, which is expected to be in December.

"We understand the importance of this decision to our shareowners and we have not made it lightly," Mr. Flannery said in prepared remarks. "We are focused on driving total shareholder return and believe this is the right decision to align our dividend payout to cash flow generation."

The company has paid a dividend since 1899 and last cut it in 2009. Mr. Flannery said the dividend change is part of his push to make GE "simpler and stronger."

The company is set to hold an investor update Monday morning where Mr. Flannery is expected to unveil his plans for the company that will focus on three of its biggest business lines but stop short of a breakup or radical restructuring.

GE shares, down 35% this year, slid about 1.7% premarket.

Write to Cara Lombardo at cara.lombardo@wsj.com

(END) Dow Jones Newswires

November 13, 2017 07:06 ET (12:06 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more GE Aerospace Charts.
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more GE Aerospace Charts.