Industrial conglomerate General Electric today reported a decrease in net profit in the third quarter to 1.8 billion dollars to 0.21 or $ 1 a share vs 1.99 billion $ 0.22 or $ 1 a share a year earlier.
Adjusted profit of the company amounted to $ 0.29 per share against analysts ‘ forecast of $ 0.49 per share. Such significant shortfalls from the forecast occurred for the first time since the first quarter of 2015.
However, the company reported an increase in revenue by 14% yoy to 33.47 billion. Analysts had expected revenue at the level of 32.56 billion due to the expansion of operations oil and gas division of GE after the merger with Baker Hughes.
“It was a very bad quarter, – said the head of GE’s John Flannery. And while the majority of our units have shown a handsome profit, this was offset by the lower performance of Power division in a difficult market”.
The company said that by the end of the year expects adjusted earnings at the level of 1.05 – $ 1.10 per share, below its prior forecast (1.60 – 1.70 USD per share) more than 30%.
GE shares during premarket trading on the NYSE to the current time fell by 4.8%. With the beginning of the year capitalization of the company fell by more than 25%, while the DJIA index, a calculation that includes GE shares rose 17.2%.
Prepared using materials MarketWatch.