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General Electric reported a $1.2 billion loss in the first quarter 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 $1.5 billion in legal reserves connected to lawsuits from its discontinued US mortgage business, WMC.
Revenues - Percent
Revenues rose 6.7 percent to $28.7 billion.
GE reported profits in every division except oil and gas. The company also reaffirmed its 2018 forecast.
Quarter - Step - Plan - Signs - Progress
"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.
Flannery - CEO - Summer - GE - Costs
Since Flannery became CEO last summer, GE has trimmed costs, streamlined its board, cut its dividend and revamped employee compensation. The company also has announced plans to sell $20 billion in industrial assets.
The power business has been beset by slowing demand for gas turbines due in part to rising demand for renewable energy.
GE - Problem - Division - Oil - Gas
GE's other problem division of late, oil and gas, could be poised for a turnaround in the foreseeable future due to strengthening oil prices. Major producers including...
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