General Electric reported on losses and announced its business reorganization

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General Electric reported on losses and announced its business reorganization
October 30
09:00 2018

General Electric has reported a loss in the third quarter of the current year. The figure is much lower than expected. The company will reduce payments and reorganize GE Power.

From July to September, the company’s loss amounted to almost 23 billion US dollars. Over the same period in 2017, it got a profit of 1.3 billion US dollars.

GE Power will be divided into 2 parts. One part will bring together the products in the gas industry, while the other one will become part of the assets of other industries.

Power is the only unit that demonstrates a drop in revenue and an increase in transaction costs.

GE has postponed the report to the end of the month. This was done so that its CEO Lawrence Culp had time to assess the situation and carry out an inspection. Mr. Culp replaced the former head John Flannery on October 1. Previously, he was in charge of the conglomerate Danaher.

Lawrence Culp considers strengthening of units and reduction of debts to be the main goal of nowadays.

General Electric is going through a difficult period. Its value has fallen by half in a year – to the mark of 98 billion US dollars.

Despite the negative reporting, there was a glimmer of hope in the market – GE securities grew by 1.3% during the bidding process on Tuesday.

 

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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