GE profits off in second quarter


Shares fell 3% in early trading to $25.83, leaving the price about 18% below where it started the year.

Winners and Losers: Shares of General Electric sunk almost 3 percent after posting a decline in second-quarter profit.

Immelt sold off NBCUniversal, appliances and most of GE Capital.

At GE Power, the world's largest maker of gas turbines, revenue climbed 5 percent.

In June, GE announced that Immelt would step down as CEO on August 1, to be replaced by longtime executive John Flannery.

U.S. officials say looking for steps by China to open markets
Shares of United States Steel Corp closed up 4.8 percent, while AK Steel rose 3.6 percent and Nucor rose 2.2 percent. In May, the governments announced the first set of measures, including China agreeing to resume USA beef imports.

Even though the arrival of a new CEO is a comparative rarity at the manufacturer - Immelt held the job for 16 years and Welch ran the company for 20 - morale is strong and the company's workforce of 300,000 is committed to helping Flannery succeed, said Jeff Bornstein, who will continue as CFO and has been promoted to vice chairman. "People's openness to rethinking things or thinking about things differently or challenging many things we've taken for granted is encouraged, and people get excited about that". Flannery will focus on "reframing our look at 2018 and beyond", he said on the call.

GE has cut $670-million in industrial overhead costs this year, Immelt said, and will "meet or exceed" its $1-billion target for 2017 - a goal set after discussion with activist investor Trian Fund Management.

For the company as a whole, industrial operating cash flow rose to $1.5 billion, a sharp turnaround from the previous quarter.

In the second quarter, Earnings per Share came in at 28 cents, as opposed to expectations of 25 cents.

The company reported a 53 percent drop in profit to $1.37 billion, or 13 cents per share. The industrial conglomerate has been providing shareholders with a number of bottom-line figures lately, in an effort to give Wall Street a clearer picture of year-over-year performance. "Looking ahead, we expect another upbeat reporting season with 2Q17 EPS coming in at circa $32.50 (consensus $31.54) on above-trend revenue growth and better than expected margins".