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GE posts loss, takes Boeing hit but raises forecast

1 August 2019
General Interest

General Electric Co (GE.N) raised its 2019 forecast on Wednesday, helped by improvement in its industrial businesses, even as its latest earnings dipped into the red after two profitable quarters, sending shares up 3 percent in premarket trading.

GE swung back to a financial loss in the second quarter as the cost of restructuring its ailing power business and the grounding of a Boeing Co (BA.N) jetliner drained more cash than expected from GE’s otherwise profitable industrial units, according to Reuters.

The Boston-based maker of jet engines, power plants and medical devices also said Chief Financial Officer Jamie Miller was stepping down but would stay on until a successor is hired.

The loss resulted from a $744-million goodwill impairment charge that GE said was related to moving a power grid software business to its digital unit.

GE’s power business, which has long been a drag on earnings, posted a $117-million profit. But its relatively strong aviation business suffered as problems stretched on with Boeing’s 737 MAX jetliner, which regulators grounded in March.

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