Revenue fell 12% to $29.56 billion.
General Electric (GE) shares opened sharply lower today after the company warned full-year earnings would likely be at the lower-end of its forecasts. GE pledged to boost its cost-cutting program earlier this year after discussions with Trian Fund Management, which has been frustrated by missed profit goals.
General Electric (GE) reported lower second-quarter earnings on Friday following a mixed performance of its industrial division, as outgoing CEO Jeff Immelt prepares to step down.
Operating cash flow from GE's continuing industrial operations, adjusted to exclude deal taxes and pension plan funding, rose from $65 million to $1.47 billion year over year in the quarter.
GE's results translated into 28c per share, 3c above analyst expectations. That marks the lowest level for the stock since October 2015, when it bottomed at $24.79.
In the second quarter, Earnings per Share came in at 28 cents, as opposed to expectations of 25 cents.
Data courtesy of Trade-Alert
"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", Immelt said in the earnings statement.
Net profit slumped 59 per cent to $1.34-billion, or 15 cents a share, in the quarter ended June 30, from $3.30-billion, or 36 cents a share, a year earlier.
Immelt said the company would be able to navigate through a market where crude oil prices are suppressing spending in some exploration and production sectors because of the global scale of GE's portfolio.
With John Flannery set to take the reins as chief executive from August 1, there is some uncertainty over the company´s longer-term earnings estimates.
Flannery, who´s career with GE spans three decades has latterly been charged with running the company´s healthcare arm.
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