GE Climbs as Finance Unit Resumes Payout Halted in Crisis |
| San Francisco Chronicle - May 16, 2012 |
General Electric Co. climbed the most in seven weeks after announcing its finance unit will resume payouts to the parent company that were suspended in 2009 during a freeze in credit markets.
GE Capital will pay a special dividend of $4.5 billion this year and hand over a $475 million quarterly payout in the three months through June, according to a statement today. Full-year payments, excluding the special dividend, are targeted to be 30 percent of the finance unit's 2012 earnings.
Restarting the dividend is a milestone in GE Capital's recovery from the financial crisis, when the unit suffered $32 billion of credit losses and received capital infusions from the parent. Proceeds from the transfer will be used to accelerate share repurchases, one of Chief Executive Officer Jeffrey Immelt's priorities this year.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/05/16/bloomberg_articlesM4438Y6K50YW01-M44P1.DTL#ixzz1v41oFlz3
Read Full Article from San Francisco Chronicle
- Posted: 2012-05-16 14:32:02
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