GE's latest earnings are a last-chance showing for its CEO

GE's latest earnings are a last-chance showing for its CEO

Operating cash flow from GE's continuing industrial operations, adjusted to exclude deal taxes and pension plan funding, rose from $65 million to $1.47 billion year over year in the quarter.

Flannery, a GE veteran, has said he will make cash flow a focus when he takes the helm on August 1.

Today's selloff would mark the eighth straight quarter that GE shares declined on the day earnings results were reported. "People's openness to rethinking things or thinking about things differently or challenging many things we've taken for granted is encouraged, and people get excited about that".

Analysts are doubtful that GE will reach a long-held goal of delivering $2 a share in profit in 2018, but the company said an updated target wouldn't come until after Mr. Flannery's review.

While GE is the world's 14th-largest company, according to Forbes magazine, its shares have dropped 20% over the past 12 months to $25.98 as oil-equipment sales were curbed by lower crude prices and a government debate over possible cuts to Obamacare hampered purchases of health-care equipment.

Immelt sold off NBCUniversal, appliances and most of GE Capital.




In the past month, Flannery has begun a "series of deep dives into each of the businesses, looking at everything you would expect", he said Friday. It raised the low end of its full-year EPS target, moving from $6.90-$7.10 to $7-$7.10, lifting the midpoint by 5 cents.

In last year's second quarter.

Revenue fell 12% to $29.56 billion. Cash flow from operations totaled $3.6-billion, up from $400-million in the first quarter.

Net profit slumped 59 per cent to $1.34-billion, or 15 cents a share, in the quarter ended June 30, from $3.30-billion, or 36 cents a share, a year earlier.

The firm's profits actually fell less than what analysts had forecast, with earnings per share coming in at 28 cents, against the 25 cents estimated.

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