G.E. Results Show Next Chief’s Challenges at Revamped Company
And in the first quarter, the company reported a negative cash flow of $1.6 billion
from industrial operations, $1 billion below management’s earlier forecast.
Less than a month later, Mr. Flannery was named the new chief at G. E.
After 16 years as chief executive, Mr. Immelt was expected to step down, but the timing surprised analysts
He said he was “not worried about the company being dead in the water until then.”
G. E.’s quarterly results were certainly not those of a company dead in the water, but they pointed to the challenge ahead for Mr. Flannery.
said earnings for the year would probably be at the low end of the company’s previous projection of operating earnings of $1.60 to $1.70 a share.
The company reported a 12 percent falloff in revenue, to $29.56 billion, somewhat higher than the Wall Street average forecast of $29.02 billion.
reported operating earnings per share of 28 cents, a 45 percent decline from the year-earlier quarter,
but slightly above the average estimate of analysts of 25 cents a share, as complied by Thomson Reuters.
The target for next year is significant because in 2015, when G. E.
announced plans for shedding most of GE Capital, it also laid out its three-year plan for the company.
Still, it will need a strong second half to achieve its forecast of cash flow of $12 billion to $14 billion for the year.
