GE said its second quarter revenue dropped by 12% year on year while its cash flow rose more than expected.
Outgoing CEO and Chairman, Jeff Immelt, Chairman “GE’s portfolio enables us to execute in a slow-growth, volatile environment, with Industrial segment organic revenues +2% and orders +6%. We delivered $0.28 of Industrial operating + Verticals earnings per share and reported Industrial operating margin +10 bps. GE’s Industrial CFOA-b) for the second quarter was $1.5 billion, significantly better than first quarter and better than second quarter last year”.
Jeff projected that “We expect cash flow to continue to improve throughout the year. We’ve reduced our Industrial structural costs* year to date by $670 million and we are on track to meet or exceed our $1 billion cost reduction target for the year. The global scale of the Company, along with our ability to innovate industry-leading products and services, will help us navigate the current environment and unlock productivity across our businesses and markets.”
“We’re looking forward to a smooth transition of the CEO position on August 1, when John Flannery becomes CEO. Since the outcome of the Board’s succession planning process was announced in June, John and I have been spending a lot of time together discussing this unique role and what he can expect in the months and years ahead. I am as confident as ever that John is going to be an outstanding leader of this great company,” he said.