General Electric reports $1.2 bn loss in 1Q; reaffirms outlook
New York: General Electric reported a USD 1.2 billion loss in the first quarter on Friday following a large legal charge, but shares surged after operating profits topped analyst expectations.
GE, which has been hit by weakness in its power and oil and gas businesses, set aside USD 1.5 billion in legal reserves connected to lawsuits from its discontinued US mortgage business, WMC.
Revenues rose 6.7 per cent to USD 28.7 billion.
General Electric reported profits in every division except oil and gas.
The company also reaffirmed its 2018 forecast.
"The first quarter is a step forward in executing on our 2018 plan and we are seeing signs of progress," said chief executive John Flannery.
GE's slumping power division "is making progress on cost actions and operational and services execution, but the industry continues to be challenging and is trending softer than our forecast," Flannery added.