General Electric quarterly profit drops 28 percent

Tinuku - US industrial conglomerate General Electric Co reported a 28 percent drop in quarterly profit on Friday. GE confirmed its full-year EPS target adjusted from $1.00 to $1.07 per share, but cut its annual cash target to $6 billion from $6 billion to $7 billion and shares down 49 percent in the past year.

Investors are still interested in GE but many want to wait for strength and stable capital units before buying stocks. Losses widened at GE Capital to $207 million compared with a loss of $172 million a year ago. The electric unit's profit fell 58 percent in the quarter to $421 million from $ 994 million as orders fell 26 percent to $7.4 billion.

Tinuku General Electric quarterly profit drops 28 percent

GE was the most valuable public company in the world in the past decade and a half, but has failed in some of the major industrial markets in recent years and its diversion into financial services led it into the eyes of a global financial storm in 2008. The 126-year-old company has cut costs aggressively selling the business and trying to strengthen the balance sheet under new managers and councils.

GE's earnings from continuing operations attributed to shareholders fell to $736 million or 8 cents per share in the second quarter ended June 30 from $1.03 billion, or 12 cents a share a year earlier. Total revenue increased to $30.1 billion from $29.1 billion.

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