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20 Oct 17. GE stock drops as profit misses, CEO cuts forecast. General Electric Co’s (GE.N) third-quarter profit missed Wall Street estimates by a wide margin on Friday and the industrial conglomerate slashed its earnings forecast, sending the year’s worst-performing Dow stock down another 6 percent.
GE reported adjusted profit of 29 cents a share compared with the 49 cents a share analysts had expected, according to a consensus of estimates from Thomson Reuters I/B/E/S.
GE cut its profit forecast for the full year to $1.05 to $1.10 a share, from $1.60 to $1.70 previously, and said it would generate about $7bn in cash from operations, down from $12bn to $14bn it had forecast earlier.
GE, part of the Dow Jones Industrial Average .DJI shares were down 6.7 percent at $22.00 in premarket trading.
GE said weak performance in its power and oil and gas businesses, goodwill impairment and higher-than-expected restructuring costs under new chief executive John Flannery were the main causes of the profit decline.
GE’s ”solid“ performance in other businesses ”was offset by a decline in power performance in a difficult market,” Flannery said. Industrial cash flow from operations fell mainly “because of lower power volume, resulting in lower earnings and higher inventory.”
Profit at GE’s power business, which makes power plants and related equipment, fell 51 percent in the quarter.
Excluding items, industrial cash flows from operating activities was $1.74bn in the third quarter ended Sept. 30, down from $2.90bn, a year earlier.
The company reported a 14.4-percent rise in revenue to $33.47bn, boosted by the acquisition of oilfield services provider Baker Hughes (BHGE.N).
Unadjusted earnings per share from continuing operations fell to $1.80bn, or 22 cents a share, from $1.99bn, or 24 cents, the company said. (Source: Reuters)
19 Oct 17. Textron Inc. (NYSE: TXT) today reported third quarter 2017 income from continuing operations of $0.60 per share or $0.65 per share of adjusted income from continuing operations, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, compared to $1.10 per share or $0.61 per share (non-GAAP) of adjusted income from continuing operations in the third quarter of 2016. During this year’s third quarter, the company recorded $25 m of pre-tax special charges ($0.05 per share, after-tax).
Revenues in the quarter were $3.5bn, up 7.2 percent from the third quarter of 2016. Textron segment profit in the quarter was $295m, down $15m from the third quarter of 2016.
“Growth in the third quarter was the result of strong commercial demand at Bell, increased deliveries at Textron Systems and higher revenues at Industrial due to the acquisition of Arctic Cat,” said Textron Chairman and CEO Scott C. Donnelly.
Cash Flow
Net cash provided by operating activities of continuing operations of the manufacturing group for the third quarter totaled $100m, compared to $178m in last year’s third quarter. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, totaled $279m compared to $94m during last year’s third quarter. The company contributed $311m to its pension plans during the quarter.
The company is increasing its expected full-year manufacturing cash flow before pension contributions (a non-GAAP measure) by $150m to a range of $800 to $900 m. With expected pension contributions of about $355m, net cash provided by operating activities of continuing operations of the manufacturing group is now expected to be in a range of $895 m to $995 m.
Earnings Outlook
Textron expects full-year 2017 GAAP earnings per share from continuing operat