>> General Electric is pairing down to three core businesses. I'm Reuters correspondent Allen Scott in New York where General Electrics CEO John Flannery has just revealed the turn around plan for the company after its first 100 days on the job. Flannery's core message is that GE is going to be a smaller and more focused company.
They are getting rid of $20 billion worth of assets, and they're going to focus on power generators, jet engines, and healthcare machinery. That's the core business, that's where they wanna see growth. Flannery also cut the dividend by 50%, he cut the earnings forecast for next year by the same amount.
And he said the company is going to take a bit hit on cash flow as well. And it will take two years to really restore the robust growth and earnings that investors expect. The stock is down about 6% today, many investors in the audience said they were disappointed with the review, saying it didn't go far enough in cutting cost.
Particularly in the power division, where GE is going to reduce spending by $1 billion next year, but some thought it could reduce by three times that amount.