GE profitable again in Q1; oil business still weak
New York (AFP) – General Electric swung back to profitability in the first quarter Friday as its aviation and power businesses scored strong operating profits growth.
GE, which suffered a modest loss in the year-ago period due to costs associated with asset sales, reported $619 million in profits in the three months ending March 31.
Revenues dipped 0.7 percent to $27.7 billion.
Operating profits growth was strongest in power, aviation and renewable energy.
But oil and gas remained a weak point, with operating profits falling 33 percent to $207 million, an indication that the market for oilfield services remains pressured after a two-year slump in oil prices that has abated in recent months.
GE chief executive Jeff Immelt said a planned combination of GE Oil & Gas with oil services company Baker Hughes remains and track and is expected to close in mid-2017.
Shares of GE slipped 0.1 percent to $30.25 in pre-market trade.