Red numbers ripened for the General Electric company
Industrial conglomerate General Electric (GE) closed the second quarter of the year with red figures. The restructuring of his distressed electricity division in particular turned out to be more expensive than anticipated in the generally profitable industry. However, the outlook for the whole year was better than expected, partly because the total costs for re-organisations this year will be lower than estimated.
GE reported a quarterly loss from continuing operations of $ 291 million. That was a profit of 679 million dollars a year earlier. The turnover of the American company amounted to 28.8 billion dollars, which represents a decrease of 1.4 percent on an annual basis. The adjusted earnings per share were higher than those taken into account by the bank.
The problems with the Boeing 737 MAX devices, which are being held to the ground worldwide for security reasons, took a bite of $ 600 million from GE’s free cash flow. Every quarter that the planes have to stay on the ground, this GE saddles up with another 400 million dollars in costs in the second half of the year. Among other things, GE makes engines for the aircraft.
GE also announced it was saying goodbye to financial director Jamie Miller. The search for a successor for her has now begun. Miller stays on until then.