GE had previously mentioned in July this year that it would sell its lighting business, which now accounts for 2% of GE's total revenue, while GE's bulb performance fell 66% this year. However, for some investors, GE without a lightbulb is like a at (t-us) or GM (gm-us) without a Chevrolet car.
GE announced in Monday (13th) that it would cut its dividend from $0.24 to $0.12, even though it could save $4 billion in "costs" each year, and its share price fell 7.17% to $19.02 per share, the lowest in 5 years. GE shares have slipped 40% this year, and the reduction in dividends has also shifted investors to more remunerative investment products.
A brief History of GE
It is understood that Addison in 1879 invented the light bulb, a year later set up its own light bulb trafficking company, and in 1892 and Thomson-houson Electronics company merged to establish today's GE.
Starting in 1892, GE is no longer making bulbs by hand, but using machines. In 1906, GE engineer William Coolidge developed a durable and ultra bright bulb that enabled GE to start selling in 1911.
In 1935, GE's light bulb began to illuminate the site for the American professional baseball MLB, invented the fluorescent bulb in 1938, and invented the LED bulbs in 1962.
GE hopes to no longer have a bulb business in 2019.
Problems with the Bulb business group
LED bulbs don't need to be replaced for decades, although GE's LED bulb business is doing well from 2007 to 2014, but future revenues are probably not very optimistic. GE hopes that future business groups will have a steady income and a healthy cash flow with growing probabilities.