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General Electric said second-quarter earnings per share fell 30% over last year due to weakness in its power division. The company's shares initially increased by 2% in pre-sale trading, as earnings outperformed Wall Street's expectations, but then declined by 0.2%.
For the second quarter, the company reported a profit of 7 cents per share, down from 10 cents a year earlier. On an ongoing basis, GE's net earnings were 8 cents per share in the last period, down 12 cents.
On an adjusted basis, GE earned 19 cents per share, which was higher than the 17 cents per share that analysts polled. The second quarter's total revenue rose 3 percent to $ 30.1 billion, more than the $ 29.31 billion expected by Thomson Reuters.
GE's aviation, transportation and health divisions all turned in stable results. The conglomerate power unit has recorded profits down 38% over last year. The result for troubled business units was better than Wall Street expected, despite the decline in net profit.
Wall Street calls for suspension or reduction of GE's dividend, putting pressure on the stock in the second quarter. While Mr. Flannery said in May that he "should see how that is played out" before deciding to make a change to the dividend in 2019, GE said June 26 that it would "adjust" "the dividend once he has completed the split. His health care business
The company revealed in May that it is not expecting earnings growth this year in its already stagnant energy sector, depressing even more the actions. GE was also withdrawn as a component of the Dow Jones Industrial Average in June, after being part of the index for more than 100 years.
The GE agreement in May to merge its transportation business with Wabtec has been hailed by investors. $ 2.9 billion in cash at GE is considered a welcome respite. The company expects the merger of its transportation business with Wabtec to end in early 2019.
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