GE quarterly revenue drops 12 percent; cash flow up on quarter

General Electric Co reported a 12 percent drop in revenue for the second quarter, as weakness in its energy connections business offset strength in renewables and power units.

Net profit slumped 58 percent to $1.34 billion, or 15 cents a share, in the quarter ended June 30, from $3.30 billion, or 36 cents a share, a year earlier.

GE`s energy connections business provides electrification and automation products to the oil and gas, mining, utility and marine industries.

Revenue fell to $29.56 billion from $33.49 billion, slightly better than the $29.02 billion consensus estimate of analysts polled by Thomson Reuters I/B/E/S.

Adjusted earnings fell 45 percent to 28 cents a share, compared with estimates for 25 cents.

GE`s closely watched cash flow from operations fell 67 percent to $3.6 billion from a year ago, reflecting the loss of contributions from the appliances division that the company sold.

But the figure was up from $400 million in the first quarter, and GE said it expects cash flow to increase during the remainder of the year.

The company affirmed its full-year forecast for cash flow, profit, revenue and operating margin.

Shares were up nearly 1 percent in premarket trading at $26.95.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)