General Electric Company(NYSE:GE) reported its first quarter revenue which lagged the analysts’ estimates, as multi-industry company faced a worst declinefollowinga sizeable charge taken as part of its strategy to sell off the majority of its lending division and turn its attention towards industrial operationslike water, power, transportation, oil and gas, and health care.
Industrial revenue dropped 1 percent to $24.36 billion in the first quarter, as growth in its power and water and transportation segments was counterbalance by falls in its oil and gas and health care divisions.
The company’s saw a decline in some of its segments. The oil and gas business was down and reported 8% drop in revenue to $3.96 billion.
GE saw a drop in demand of equipment and services by oil producers as they have limit their plans for new projects and insisting more discounts on existing orders. Late last year the company had warned investors of such precarious situation by elaborating that its oil and gas sales and income could drop 5% this year, however analysts are expecting much steeper losses.
GE Capital turnovers lessened 39% to $5.98 billion.
The Capital business has been playing a key role in driving the profit of the company but has showed his age due to investors who considers it a dark cloud on the company’s industrial business arm.
The company said last week that it would cut down the business to large extent and also reveal strategy to sell off about $165 billion loans to purchasers like Wendy’s franchisees, overseas consumers and private-equity firms. GE would also confirmed the selling of its investments worth $26 billion in office buildings and other commercial property.
This is one of the biggest turning point plans in the 123-year history of the company.
Overall GE quarter loss was $13.57 billion, or $1.35 a share, compared to $3 billion, or 30 cents a share, in a year earlier quarter. Operating loss was $1.08 a share.
