General Electric enters red numbers in the second quarter and loses 61 million

The US industrial conglomerate General Electric (GE) recorded net attributable losses of US $61 million in the second quarter of 2019, compared to the ‘black numbers’ of US $615 million in the same period of the previous year, as reported by the company.

The change in the net result corresponded with an extraordinary impact of US $744 million due to the depreciation of the assets of its energy business.

Atypical income from divestments also affected earnings, which in the second quarter of 2018 totaled US $886 million, compared to the negative impact of US $8 million in the second quarter of this year. “We will continue to carry out planned actions to improve our business and monitor some winds against the market,” said GE president and CEO Lawrence Culp.

The turnover between April and June decreased by 1%, to US $28.831 billion. By business segments, the aviation division improved its revenues by 5%, up to US $7.877 billion, while the oil and natural gas business advanced 7%, up to US $5.953 billion.

The area of ​​sanitary equipment stood at US $4.934 billion, 1% less, and the renewable energy division picked up 26%, to US $3.627 billion. The largest contraction corresponded to the energy segment, whose turnover decreased by 25%, to $ 4.681 billion.

With respect to expenses, costs associated with sales remained stable at US $21.817 Billion, although sales, general and administrative expenses fell 3.7% to US $4.184 billion. Likewise, interest and other atypical financial expenses stood at US $991 million, 23.2% less.

Over the first six months of the year, GE accounted for a net profit of US $3.488 billion, compared to losses of US $568 million in the previous year. In the accumulated of the first semester, the total income fell 1%, to US $56.117 billion.

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