General Electric Co has announced its fourth-quarter earnings with a bottom line missing the estimates of analysts while generating strong revenues and cash flow.
The company announced of reaching to a tentative agreement with the Department of Justice to pay an amount of $1.5 billion for an investigation against its accounting practices.
The company, with the Department of Justice, was in process of one of its largest litigation and the tentative settlement deal will be major relief for the company. GE was gone through an investigation by U.S. Department of Justice for allegedly having subprime mortgage practices prior to financial crisis in 2008 and now it will pay a civil penalty of $1.5 billion, an amount already set aside by the company.
In fourth quarter GE also took in the charges of $400 million for repairing broken blades of power turbines provided to dozens of its customers around the world and other costs.
Profit for the fourth-quarter booked by GE remained $666 million, while it has beaten the analysts’ estimates of $32.6 billion by generating quarterly revenue of $33.3 billion.
GE came out achieving profits in oil-and-gas, healthcare and aviation businesses which also leveled the loss of about $1 billion in GE Capital and power units.
The GE Capital, finance arm of the GE, has lost $177 million in the reported quarter whereas power division of GE lost $872 million.
The quarterly industrial free cash flow of $4.9 billion though remained lower than that of last year but it remained successful to beat the $4 billion mark desired by the investors
To a per share loss of $1.29 a year ago, GE’s secured a profit of 8 cent per share in the fourth quarter.
On an adjusted basis, earnings of GE came to 17 cents per share which remained below to analyst estimates of 22 cents, according to Refinitiv IBES data.