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GE shares fall on industrial business worry though profit beats

Reuters  |  NEW YORK 

By Alwyn Scott

NEW YORK (Reuters) - General Electric Co reported quarterly sales and adjusted earnings that beat analysts estimates on Friday, but its fell on concerns about some of its industrial businesses.

The maker of jet engines, power plants and other industrial equipment also reported a negative $1.6 billion in cash flow from industrial operating activities compared with a negative $600 million it expected for the quarter due to a $1.3 billion increase in working capital and the timing of bills to customers.

Investors have been watching cash flow as an indicator of GE's operating performance, and said it still expects to hit its cash target of $12 billion to $14 billion for the full year.

were down 1.7 percent at $29.75 in mid-morning trading, making it the biggest decliner on the Dow Jones Industrial Average.

The stock has outperformed the sector in recent weeks and that could make the "less favorable in the current risk-on market," said Deane Dray, analyst at RBC Capital markets.

The company also raised concern by giving itself wiggle room to deliver fewer LEAP aircraft engines this year, a key risk for the company. It said the range for the year was 450 to 500 engines, instead of nearly 500 it stated earlier.

"It is notable that is taking a more cautious slant by backing away from a firm target of "500" engine deliveries in 2017," Vertical Research Partners analyst Rob Stallard said.

beat analysts estimates for adjusted earnings and revenue, even though revenue fell 1 percent to $27.66 billion, due to lower sales in its oil-and-gas and lighting businesses. Analysts expected $26.26 billion, according to Thomson I/B/E/S.

Adjusted earnings of 21 cents a share were unchanged from a year ago and beat analyst estimates of 17 cents, according to Thomson I/B/E/S.

said industrial organic revenue, which is from continuing businesses, rose 7 percent in the quarter, a strong showing according to analysts.

Chief Executive Officer Jeff Immelt noted a 10 percent rise in quarterly orders and said the world economy was "an attractive environment for "

"We see global growth accelerating, while the U.S. continues to improve," Immelt said on a conference call, adding that growth in China, Southeast Asia, Latin America and Africa this year were all "stronger than last year."

(Reporting by Alwyn Scott in New York and Rachit Vats in Bengaluru; Editing by Sriraj Kalluvila and Bernadette Baum)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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GE shares fall on industrial business worry though profit beats

NEW YORK (Reuters) - General Electric Co reported quarterly sales and adjusted earnings results that beat analysts estimates on Friday, but its shares fell on concerns about some of its industrial businesses.

By Alwyn Scott

NEW YORK (Reuters) - General Electric Co reported quarterly sales and adjusted earnings that beat analysts estimates on Friday, but its fell on concerns about some of its industrial businesses.

The maker of jet engines, power plants and other industrial equipment also reported a negative $1.6 billion in cash flow from industrial operating activities compared with a negative $600 million it expected for the quarter due to a $1.3 billion increase in working capital and the timing of bills to customers.

Investors have been watching cash flow as an indicator of GE's operating performance, and said it still expects to hit its cash target of $12 billion to $14 billion for the full year.

were down 1.7 percent at $29.75 in mid-morning trading, making it the biggest decliner on the Dow Jones Industrial Average.

The stock has outperformed the sector in recent weeks and that could make the "less favorable in the current risk-on market," said Deane Dray, analyst at RBC Capital markets.

The company also raised concern by giving itself wiggle room to deliver fewer LEAP aircraft engines this year, a key risk for the company. It said the range for the year was 450 to 500 engines, instead of nearly 500 it stated earlier.

"It is notable that is taking a more cautious slant by backing away from a firm target of "500" engine deliveries in 2017," Vertical Research Partners analyst Rob Stallard said.

beat analysts estimates for adjusted earnings and revenue, even though revenue fell 1 percent to $27.66 billion, due to lower sales in its oil-and-gas and lighting businesses. Analysts expected $26.26 billion, according to Thomson I/B/E/S.

Adjusted earnings of 21 cents a share were unchanged from a year ago and beat analyst estimates of 17 cents, according to Thomson I/B/E/S.

said industrial organic revenue, which is from continuing businesses, rose 7 percent in the quarter, a strong showing according to analysts.

Chief Executive Officer Jeff Immelt noted a 10 percent rise in quarterly orders and said the world economy was "an attractive environment for "

"We see global growth accelerating, while the U.S. continues to improve," Immelt said on a conference call, adding that growth in China, Southeast Asia, Latin America and Africa this year were all "stronger than last year."

(Reporting by Alwyn Scott in New York and Rachit Vats in Bengaluru; Editing by Sriraj Kalluvila and Bernadette Baum)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
177 22

GE shares fall on industrial business worry though profit beats

By Alwyn Scott

NEW YORK (Reuters) - General Electric Co reported quarterly sales and adjusted earnings that beat analysts estimates on Friday, but its fell on concerns about some of its industrial businesses.

The maker of jet engines, power plants and other industrial equipment also reported a negative $1.6 billion in cash flow from industrial operating activities compared with a negative $600 million it expected for the quarter due to a $1.3 billion increase in working capital and the timing of bills to customers.

Investors have been watching cash flow as an indicator of GE's operating performance, and said it still expects to hit its cash target of $12 billion to $14 billion for the full year.

were down 1.7 percent at $29.75 in mid-morning trading, making it the biggest decliner on the Dow Jones Industrial Average.

The stock has outperformed the sector in recent weeks and that could make the "less favorable in the current risk-on market," said Deane Dray, analyst at RBC Capital markets.

The company also raised concern by giving itself wiggle room to deliver fewer LEAP aircraft engines this year, a key risk for the company. It said the range for the year was 450 to 500 engines, instead of nearly 500 it stated earlier.

"It is notable that is taking a more cautious slant by backing away from a firm target of "500" engine deliveries in 2017," Vertical Research Partners analyst Rob Stallard said.

beat analysts estimates for adjusted earnings and revenue, even though revenue fell 1 percent to $27.66 billion, due to lower sales in its oil-and-gas and lighting businesses. Analysts expected $26.26 billion, according to Thomson I/B/E/S.

Adjusted earnings of 21 cents a share were unchanged from a year ago and beat analyst estimates of 17 cents, according to Thomson I/B/E/S.

said industrial organic revenue, which is from continuing businesses, rose 7 percent in the quarter, a strong showing according to analysts.

Chief Executive Officer Jeff Immelt noted a 10 percent rise in quarterly orders and said the world economy was "an attractive environment for "

"We see global growth accelerating, while the U.S. continues to improve," Immelt said on a conference call, adding that growth in China, Southeast Asia, Latin America and Africa this year were all "stronger than last year."

(Reporting by Alwyn Scott in New York and Rachit Vats in Bengaluru; Editing by Sriraj Kalluvila and Bernadette Baum)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22