GE's Profit Falls as Power Division Remains a Drag
20 Julio 2018 - 6:14AM
Noticias Dow Jones
By Thomas Gryta
General Electric Co.'s (GE) second-quarter profit dropped 30% as
the company's power division continued to offset growth in other
major units.
While the conglomerate backed its 2018 profit goal, it said free
cash flow would be at the low end of its previous estimate. The
industrial conglomerate's adjusted earnings of 19 cents a share
beat Wall Street expectations of 17 cents a share for the period,
according to Thomson Reuters. Revenue of $30.1 billion also topped
consensus projections of $29.3 billion.
GE recently unveiled its road map for restructuring under new
Chief Executive John Flannery, a series of moves to significantly
dismantle the conglomerate without a complete breakup of the
onetime bellwether. Over several years, GE separated its Healthcare
unit into a separate company and exited its majority holding in
oil-and-gas firm Baker Hughes. GE said Friday that its plan to sell
$20 billion in assets is "substantially complete."
"We saw continued strength across many of our segments,
especially in Aviation and Healthcare," Mr. Flannery said in
prepared remarks, noting that GE cut costs in its industrial
divisions by $1.1 billion in the first half of 2018.
"We expect the power market to remain challenging, and we
continue our focus on operational improvement," he said.
By Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
July 20, 2018 06:59 ET (10:59 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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