The General Electric logo is pictured on the General Electric offshore wind turbine plant in Montoir-de-Bretagne, near Saint-Nazaire, western France, November 21, 2016. REUTERS/Stephane Mahe
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Rather than rising, GE Power's profit fell 45 percent last year, forcing GE to slash its overall profit outlook and cut its dividend for only the second time since the Great Depression.Power is one of GE's oldest and largest businesses, and supplied 60 percent of the conglomerate's profit as recently as 2016 .GE doubled down on fossil fuel in 2015 with the $10.3 billion purchase of French group Alstom's power business.The Alstom deal added 65,000 employees to GE's payroll and dozens of factories and service centers around the globe at a time when GE was trying to cut costs.While Alstom gave GE more than $14 billion in annual revenue, Alstom's profit margins were less than one-third of GE's.Regulators required GE to sell the power-plant service arm of Alstom, a Florida-based company called Power Systems Manufacturing that had long been a competitor to GE, Mitsubishi and Siemens.Rather than improving Alstom's margins, GE Power's margin plunged to 7.7 percent last year from 21 percent before the acquisition.GE also wrote off some of the equipment it built up as part of an $850 million charge it took in the fourth quarter. GE did not rule out further write offs, in response to questions from Reuters.
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