General Electric Co. will take an after-tax charge of $4.3 billion in second-quarter earnings as a result of the accelerated plan to dispose of the bulk of its finance operations.
The timing shows how fast GE is moving after revealing a strategy shift in April to sell off most of the GE Capital unit and refocus on manufacturing. GE previously had said it would incur $23 billion of charges by next year, including $16.1 billion in 2015’s first quarter.
GE reclassified several commercial lending businesses as “held for sale” ahead of schedule on June 29, resulting in a charge related to discontinued operations, according to a regulatory filing on Monday.
The company agreed June 29 to sell most of its vehicle fleet-management business to Canada’s Element Financial Corp. for $6.9 billion. Fairfield, Connecticut-based GE also said last week it would unload its European buyout-lending division in a $2.2 billion deal with Sumitomo Mitsui Financial Group Inc.