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The results, though better than what analysts expected, were impacted by weakness in the Power segment which declined 26% year-over-year. In May GE disclosed that it’s anticipating no profit growth in the Power segment, which pushed its shares down further at that time. Also, last month GE was moved out of the Dow Jones Industrial Average index, after being a part of it for more than a century.
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On a segment basis, the company reported revenue declines in four of its segments including power, renewable energy, transportation and lighting. In the power segment, GE said it is continuing to focus on right-sizing footprint and structural cost and maximizing the value of the segment’s installed base. However, oil and gas, aviation, and healthcare posted high single digit to double digit growth in revenue for the quarter.
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The Boston, Massachusetts-based industrial behemoth, despite the weakness in its power business, reaffirmed its outlook for 2018, with adjusted EPS still expected in the range of $1.00-$1.07.
GE revealed in the release that on its initiatives on simplifying its complex business structure through its restructuring initiatives, it is progressing well on its plans. The company also added that it closed on the Industrial Solutions and Value-Based Care transactions and announced plans to separate GE Healthcare into a standalone company over 12 to 18 months.
GE stock has not seen any positives for a couple of years now and has been heading south through the year, plunging more than 48% in the last one year. After the company announced its earnings report, stock rose more than 2.5% during pre-market trading.