General Electric and Colgate-Palmolive Report Uninspiring Results

General Electric and Colgate-Palmolive Report Uninspiring Results

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The industrial group General Electric (GE) suffered a profit fall in the second quarter. The net profit fell by more than half to just under 1.2 billion US dollars, as the company reported on Friday. Adjusted for various items such as the cost of group conversion, the result fell by 45 percent to $2.4 billion or $0.28 per share. As a result, General Electric performed even better than expected by analysts at $ 0.25 per share.

On the financial market, however, the news did not come well. In New York, the stock loses more than 4.5 percent.

At the same time, GE’s sales were not as strong as those expected by experts. It fell 12 percent to $29.6 billion. Analysts had expected an average of 29.15 billion dollars. In contrast, GE increased its order intake by 6 percent to $28.3 billion. The order backlog increased by 2 percent to 326.8 billion dollars.

The business with oil and gas as well as with energy was weaker. There the profits went back. The Siemens rival also had to leave feathers in transport systems. GE achieved higher results in the areas of aviation, medical technology and renewable energies.

The US consumer goods group Colgate-Palmolive capped its expectations for the current year after a weak second quarter. Sales in this year will only grow by a low single-digit percentage, the manufacturer of Colgate toothpaste, Palmolive soap and Ajax household cleaner announced on Friday in New York. Initially, CEO Ian Cook, had predicted a growth of 4 to 7 percent, but warned in April that growth would probably be slightly lower. In doing so, he expects currency fluctuations as well as the purchase or sale of company shares.

In the second quarter, Colgate-Palmolive recorded a drop in sales by 0.5 percent to 3.8 billion US dollars (3.3 billion euros) as a result of lower sales figures and unfavorable currency rates. Sales were stagnating on their own. Price increases could not offset this. Compared to the same period of the previous year, the profit decreased by 13 percent to 524 million dollars. The company met the expectations of the analysts with regard to earnings per share adjusted for special effects.

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I handle much of news coverage for tech stocks, and occasionally cover companies in different sectors. In the past, I've written for other financial sites and published independent investment research, primarily on tech companies. I have a B.A. in Economics from Columbia University. I'm based out of San Diego, but grew up in Southern New Jersey. I play basketball and tennis in my spare time, am a long-time (and long-suffering) fan of Philadelphia's sports teams, and alternate daily between using an iPad Air, a Galaxy Note 3, and one or two Windows PCs.

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