The Good, the Bad and More in GE’s Earnings
The struggling giant is taking the right steps to aid its turnaround, but not without pain.
Imagination at work.
Photographer: Daniel Acker/Bloomberg
It’s another painful earnings day at General Electric Co. This time around, the company may finally be cutting deep enough to give its turnaround efforts a real chance.
In announcing its third-quarter results on Tuesday, GE also slashed its dividend to a nominal penny a share and said it would split its struggling power business into two units to accelerate operating improvements. GE reported a $630 million loss in its power segment for the quarter. That far exceeded analysts’ expectations and dragged GE’s overall results well below heavily reduced estimates. GE was mum in its press release and presentation slide deck on an update to its guidance for the full year, having already warned that it would fall short of a previous goal of $1 to $1.07 in adjusted earnings per share and $6 billion of industrial free cash flow.