General Electric Co on Friday reported a steep drop in profit, missing consensus estimates by 20 cents per share and sending its stock sharply lower in pre-market trading.
GE reported adjusted profit of 29 cents a share compared with the 49 cents a share analysts had expected, according to a consensus of estimates from Thomson Reuters I/B/E/S.
GE shares were down 4.6 percent at $22.50 in premarket trading.
GE said weak performance in its power and oil and gas businesses, goodwill impairment and higher-than-expected restructuring costs under new chief executive John Flannery were the main causes of the profit decline.
GE`s "solid" performance in other businesses "was offset by a decline in power performance in a difficult market," Flannery said. Industrial cash flow from operations fell mainly "because of lower power volume, resulting in lower earnings and higher inventory.”
Profit at GE`s power business, which makes power plants and related equipment, fell 51 percent in the quarter.
Excluding items, industrial cash flows from operating activities was $1.74 billion in the third quarter ended Sept. 30, down from $2.90 billion, a year earlier.
The company reported a 14.4 percent rise in revenue to $33.47 billion, boosted by the acquisition of oilfield services provider Baker Hughes.
Unadjusted earnings per share from continuing operations fell to $1.80 billion, or 22 cents a share, from $1.99 billion, or 24 cents, the company said.
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