GE reports plunge in net income, as CEO Jeff Immelt prepares to leave
New York — General Electric (GE) reported lower second-quarter earnings on Friday following a mixed performance of its industrial division, as outgoing CEO Jeff Immelt prepares to step down. Net income was $1.2bn, down 57% from the year-ago period. Revenue fell 11.8% to $29.6bn. The results in the 2016 period were boosted by the inclusion of appliances assets that have since been sold. In June, GE announced that Immelt would step down as CEO on August 1, to be replaced by longtime executive John Flannery. GE has struggled to ignite strong growth in its industrial divisions after Immelt moved to sell massive finance assets over the past two years. In the second quarter, oil and gas once again was a drag, with profit falling more than 50%. Profit also fell in the power and transportation divisions, but rose in renewable energy, aviation and healthcare. "GE’s portfolio enables us to execute in a slow-growth, volatile environment," Jeff Immelt said. "The global scale of the company, alo...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.