GE has jettisoned most of its financial services units as part of its restructuring to focus on core industrial segments
NEW YORK—General Electric Co. reported a slight decrease in its core quarterly profit as the company continues to shed and distance itself from its finance and capital businesses.
The company earned $1.93 billion, or 21 cents per share, down 2 per cent from $1.97 billion, or 20 cents per share, a year prior. The figures include only the conglomerate’s industrial businesses. The Fairfield, Connecticut-based company has been shedding its financial and capital units over the last few years in an effort to slim down and refocus on its core businesses.
Overall for the period, the company lost $98 million, or 1 cent per share, including costs associated with its financial units.
Revenue from industrial segments rose 6 per cent to $25.87 billion. The company’s power unit, which makes power generation technology, saw revenue rise 13 per cent to $5.2 billion, while renewable energy products rose 62 per cent to $1.67 billion. Revenue from its aviation segment rose 10 per cent to $6.26 billion.
GE has jettisoned most of its financial services units as part of its restructuring move. Last year, it negotiated sales totalling $157 billion as part of the effort. At the same time, it is beefing up its industrial core. It closed a $10.6 billion buyout of French manufacturer Alstom in November of 2015.
Looking ahead, GE expects full-year earnings in the range of $1.45 to $1.55 per share.
GE shares slipped 38 cents, or 1.2 per cent, to $30.60 in premarket trading. They have fallen 0.5 per cent since the beginning of the year, while the Standard & Poor’s 500 index has climbed slightly more than 2 per cent. The stock has risen 16 per cent in the last 12 months.