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GE profits decline in Q2 on weak power unit

GE profits decline in Q2 on weak power unit

Mubasher: General Electric (GE) reported on Friday that its earnings dropped 34% to $669 million in the second quarter of 2018, compared $1.02 billion in the same quarter of 2017.

This came on the back of weakness in GE’s power division, which saw its profits dropped 58% to $421 million in Q2-18, from $994 million in Q2-17, while the segment’s revenues shed 19% to $7.5 billion.

Earnings per GE share (EPS) declined 10% to $0.19 in the period between April and June, compared to $0.21 in the same period last year.

The industrial conglomerate saw a 3% increase in its total revenues to $30.1 billion during the three months ended last June from 29.1 billion in the same period last year.

In the first half of this year, the US company saw a net loss of $444 million, compared to 832 million in the same half last year.

In H1-18, GE generated $58.8 billion in revenues, 5% higher than $56 billion in H1-17.

GE cut its industrial structural costs by $1.1 billion, more than halfway toward its more than $2 billion goal for this year.

GE also reduced its annual cash target to $6 billion from a range of $6 billion to $7 billion, but affirmed its total-year adjusted EPS target of $1.00 to $1.07 a share.

“GE is moving forward to implement the strategy and structure we laid out in June,” the Boston-headquartered company’s CEO John Flannery stated.

The second quarter’s results came in line with expectations, with a continued growth observed across many of the company’s businesses, Flannery said, adding that “the power market [would] remain challenging, and we continue our focus on operational improvement.”