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Home / Business / GE poster tap; raises cash forecast, turns on adjusted EPS

GE poster tap; raises cash forecast, turns on adjusted EPS



By Sanjana Shivdas and Alwyn Scott

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "(Reuters) – General Electric Co posted a $ 1.3 billion loss in the third quarter on Wednesday, saying revenue was flat as it struggles to restore growth and profits after taking a $ 22 billion accounting charge a year ago." data-reactid = "23"> (Reuters) ̵

1; General Electric Co posted a $ 1.3 billion loss in the third quarter on Wednesday, saying revenues were flat as it struggles to recover from growth and profits after taken accounting expenses of $ 22 billion a year ago.

But on an adjusted basis, the Boston-based conglomerate generated more profits than expected, beating analysts' estimates, and pledging to deliver $ 1 billion more cash this year than previously expected. [19659004Theresultssignaled"progresstransformationofGEGE"then-managingdirectorLarryCulp

The company said it now expects industrial free cash flow for the full year to be between $ 0 and $ 2 billion, compared to the previous forecast of GE $ 1 billion to positive $ 1 billion.

GE shares increased by 5.8 percent to $ 9.60 in premarket trading.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "GE said it took an $ 8.7- billion charge for reducing its stake in Baker Hughes Co to less than 50 percent in the quarter, a change that required GE to stop consolidating the oil and gas company's earnings in GE's results and to mark the remaining stake to fair market value. Analysts had expected a charge between $ 8.5 billion and $ 10 billion. " data-reactid = "28"> GE said it charged $ 8.7 billion to reduce its stake in Baker Hughes Co to below 50 percent in the quarter, a change that required GE to stop consolidating oil – and the gas company's earnings in GE's results and to mark the remaining ownership interest at fair market value. Analysts had expected a cost between $ 8.5 and $ 10 billion.

GE incurred a $ 1 billion expense for its long-term care insurance business to account for the effect of falling interest rates on its liabilities. The charge was about what analysts expected.

GE also amortized $ 740 million in goodwill for its hydropower operations. In total, insurance and goodwill costs amounted to 17 cents EPS, GE said.

The company's loss from continuing business attributable to shareholders was $ 1.33 billion in the quarter ended September 30, compared to a loss of $ 22.96 billion the year before.

Loss per share from continuing operations was SEK 15, against a loss of $ 2.64 a year ago, the company said.

On an adjusted basis, which excludes such fees, GE earned 15 cents per share, compared to 11 cents as analysts had expected on average, according to IBES data from Refinitive.

Total revenues fell slightly to $ 23.36 billion from $ 23.39 billion.

(Reporting by Sanjana Shivdas in Bengaluru and Alwyn Scott in New York; Editing by David Holmes and Nick Zieminski)


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