GE Posts Hefty Loss In Q2

(RTTNews) - General Electric Co. (GE) reported Wednesday a hefty net loss in the second quarter, amid ongoing impact of COVID-19 on its businesses and weak revenues. The company expects to return to positive Industrial free cash flow in 2021.

".... based on what we see today and the actions we've taken, sequential improvement in earnings and cash in the second half of the year is achievable," said GE Chairman and CEO H. Lawrence Culp, Jr.

GE said that it is launching a program to fully monetize its Baker Hughes position over about three years. Executing on the program over time will allow GE to divest a substantial non-core asset, redeploy capital, enhance financial flexibility, and strengthen its balance sheet. GE expects to use proceeds from the transactions for further deleveraging.

The company reported that its second-quarter net loss attributable to common shareholders widened to $2.18 billion or $0.26 per share from $61 million or $0.01 per share in the same quarter last year.

The latest-quarter results included non-cash pre-tax goodwill impairment charges of $877 million related to Additive within GE's Aviation segment and $839 million related to GECAS within GE Capital.

Adjusted loss per share for the quarter was $0.15 compared to adjusted earnings per share of $0.16 in the prior year. Analysts polled by Thomson Reuters expected the company to report a loss of $0.10 per share for the second quarter. Analysts' estimates typically exclude special items.

Total revenues for the second quarter declined 24 percent to $17.75 billion from $23.41 billion in the previous year. Analysts expected revenues of $17.12 billion for the quarter.

In Wednesday pre-market trade, GE was trading at $7.02 up $0.13 or 1.89 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos


Founded in the late 1990s by Andrew Mariathasan in New York, with the goal of covering Wall Street for a new generation of investors, RTTNews has expanded steadily over the years to become a trusted provider of content for a wide array of subjects across several platforms. RTT's Financial Newswire is relied upon by some of the world's largest financial institutions, including banks, brokerages, trading platforms and financial exchanges.

Learn More