General Electric struggles to stay on his feet

NEW YORK (CNNMoney) –

General Electric is changing for the future, but the iconic business is still pursued by serious problems of the past in its energy division.

GE Power's profits fell 58% in the second quarter as gas turbine orders fell, GE said Friday. The downfall of GE Power, the company 's largest division in terms of revenue, highlights the challenges that GE faces now that the company is splitting up by selling its rail, health and safety activities. Electric light bulbs. , among others.

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GE's problems drove profits down by 30% in the second quarter, offsetting the strengths shown by the divisions. aviation and health care.

"The biggest challenge we face is still working on the direction of our energy business," said John Flannery, CEO of GE, during a conference call on Friday.

Flannery said that the demand for orders It has been light, and puts the pressure on the cash flow and working capital of GE.

GE Power was taken by surprise by the rapid increase in renewable energy. Power plants are changing fossil fuels like coal and natural gas in favor of wind and solar power

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The good news is that many on Wall Street feared to receive worse results Of the recently expelled Dow Jones company, GE managed to increase its overall profit by 3%, thanks to the strength of its division aeronautics, oil and gas. In GE Power, managers maintain their financial projection for the rest of the year.

The GE shares had changed little this Friday morning.

GE is also making progress in reducing costs to stabilize the company. GE said it has cut its industrial costs by $ 1.1 billion this year and that it is poised to exceed its $ 2 billion savings goal. Much of these savings measures were taken at GE Power, which announced plans to eliminate 12,000 jobs by the end of last year.

Flannery promised to repair GE Power urgently, but warned that it would not be a quick or fluid change.

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"It will be a multi-year arrangement, with some volatility," he said.

The energy is not the only part of GE in trouble, profits have dropped to double digits also in GE's railway division, even renewable energy, which is mainly wind, experienced a 48% decrease in profits while decreasing orders and prices.

The light in the way of GE is still the aviation, which produces and maintains jet engines. The turnover, profits and orders have grown steadily. "GE said equipment orders rose 62 percent due to strong demand for GEnx and LEAP engines.

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Last month, GE announced its intention to reduce sales – your health care companies, pet oil and gas, and railroads.This was a dramatic change for one of the largest conglomerates in the United States. United States

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GE vowed to use the product Pay off a mountain of debt and simplify a business become In recent years, GE owned everything from a NBC appliance and television business to one of the largest banks in the United States. progress in our plans to make GE simpler and stronger Flannery this Friday