General Electric will focus on meeting second half turnaround goals for its struggling power and GE Capital business units, the company said after its earnings report Friday.
“We’ve described 2018 as a reset year and in this quarter we’ve made significant progress on that journey," CEO John Flannery said on a conference call with investors. "This is an execution story going forward."
GE's second-quarter profit was 30 percent lower than last year, dragged lower by its power business and GE Capital – with the former reporting a 58 percent lower profit and and the latter posting a 20 percent greater loss. Reorganizing GE has been Flannery's push since he was appointed chief executive last August.
Shortly after taking the helm, Flannery pledged to shareholders that he would sell $20 billion in assets. He began April 2, selling GE's healthcare technology unit to private equity firm Veritas Capital for $1 billion in cash. Flannery then announced May 21 that GE would unload the bulk of its transportation business to Wabtec for $11.1 billion – a deal which included an upfront payment to GE of $2.9 billion in cash. GE sold its distributed power unit for $3.25 billion to buyout group Advent on June 25. The next day, Flannery announced the company was spinning off GE Healthcare and separating GE from its stake in oil services company Baker Hughes. GE has also now closed its $2.6 billion industrial solution unit saleto ABB, Flannery noted on Friday.
"This essentially completes the announcement ... of our target of $20 billion of dispositions," Flannery said.