GE Chief Gives Cautious Outlook for Power Business
May 23 2018 - 2:10PM
Dow Jones News
By Thomas Gryta
General Electric Co. boss John Flannery warned investors
Wednesday that the company's big power business faces years of
pressure and reminded them that major changes at the conglomerate
will take some time.
"This is not going to be a quick fix," the CEO said in a
presentation at the Electric Products Group conference where he
highlighted that GE expects flat profits in power business this
year and weak demand for turbines in 2019 and 2020. The business is
GE's biggest in terms of revenue and has been a drag on
results.
Mr. Flannery made it clear that he continues to consider options
for the portfolio of businesses but much of his message was a
reiteration of prior declarations to simplify, shrink the financial
business and focus on cash generation. The comments disappointed
Wall Street, which pushed GE's shares down 6% in afternoon trading
to $14.36.
(END) Dow Jones Newswires
May 23, 2018 13:55 ET (17:55 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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