$GE News GE Capital Plans to Pay Parent GE $6
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GE Capital Plans to Pay Parent GE $6.5 Billion 2013 Dividend
By Melodie Warner
General Electric Co. (GE) said GE Capital Corp.'s board approved a $6.5 billion dividend payment to the conglomerate, which reflects 30% of the financial arm's planned 2013 earnings.
GE Capital also plans to pay GE $4.5 billion in special dividends this year.
All of the dividend payments are subject to GE Capital board and GE Board Risk Committee approvals.
"This announcement is consistent with our goal to reduce the overall size of GE Capital and for it to return significant cash to GE," said GE Chairman and Chief Executive Jeff Immelt.
Mr. Immelt has tried to reduce GE's reliance on its financial arm in the past few years while boosting the company's industrial businesses, which investors tend to value more highly.
GE Capital's first-quarter revenue rose 1.7% to $11.54 billion, while profit rose 8.7% to $1.93 billion, excluding cash and equivalents.
Meanwhile, GE's first-quarter earnings rose 16% on a gain from selling its remaining stake in NBCUniversal and revenue was flat amid weakness in the industrial segment.
GE plans to return $18 billion in cash to its shareholders this year, including the repurchase of $10 billion of stock, under its previously announced balanced capital allocation plan.
Shares closed Friday at $23.46 and were inactive premarket. The stock is up 12% so far this year.
Write to Melodie Warner at melodie.warner@dowjones.com
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