General Electric set to get a windfall from its finance arm

City A.M. Reporter
GENERAL Electric is set to get a $6.5bn dividend from its financial unit GE Capital as part of a plan to reduce the size of the business.

“This announcement is consistent with our goal to reduce the overall size of GE Capital and for it to return significant cash to GE,” GE chief executive Jeff Immelt said in a statement.

The windfall includes a special dividend of $4.5bn, the company said.

The payments are planned at 30 per cent of GE Capital’s total 2013 earnings, GE said.

GE Capital paid a first-quarter earnings dividend of $447m on 19 April.

GE Capital, which won regulatory approval to resume returning some of its profit to GE last May, had paid $6.4bn to the parent company in 2012.

The unit provides finance to small- to medium-sized companies around the world.

General Electric last month posted a 14 per cent rise in earnings to $4.1bn, helped by asset disposals.