GE shares retreat on lacklustre guidance

GE shares retreat on lacklustre guidance

He's retiring as GE grapples with pressure from activist investor Trian Partners to boost earnings to as much as $2.33 a share in 2018, an even more ambitious target than the $2 goal Immelt has warned may be "on the high end", as well as a falling stock price and a challenging natural-resource market.

Shares of the United States conglomerate fell more than 4% in morning trade after it said profits fell 57% to $1.2bn, as sales in its oil and gas, transportation and lighting divisions fell.

U.S. industrial giant General Electric reported net profits of $1.34bn for the second quarter of 2017, 53% less than its earnings for the same quarter in 2016.

GE said it will include an assessment of the entire business, a review of cost cuts, capital allocation and update the 2018 outlook.

At GE Power, the world's largest maker of gas turbines, revenue climbed 5 percent.

John Flannery, current president and CEO of GE Healthcare, has been named CEO of the company, effective August 1, and chairman effective Jan.1, 2018.

Chinese and U.S. bosses urge resolution to trade row
However, the two sides avoided issuing any statements on the contentious issue of steel tariffs at the talks. Personally, I think the main reason is that the asking price from the American side was too high.

It beat analyst expectations on adjusted profit, but cash flow was weak and GE said full-year profit and cash flow will be at the low end of its forecasts.

Flannery said he is "in the middle of a series of deep dives into the businesses".

"We've reduced our Industrial structural costs year to date by $670 million and we are on track to meet or exceed our $1 billion cost reduction target for the year", Chairman and CEO Jeff Immelt said in an earnings release. The company reported a profit of $1.19 billion, or 15 cents a share, down from $2.76 billion, or 36 cents a share, a year earlier.

For the company as a whole, industrial operating cash flow rose to $1.5 billion, a sharp turnaround from the previous quarter.

Shares of General Electronics fell from 3% in premarket trading after the organization results beat estimation but posted a almost 60% decline in gains. The figure was down 67 per cent from a year ago, partly reflecting the loss of contributions from the appliances division.

General Electric reported better-than-expected quarterly results, but sales fell 12 percent year over year.

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