GE shares rise as it lifts some 2019 targets

©Agence France-Presse

General Electric shares rose as it reported mixed industrial results and said it was making progress on a corporate turnaround

New York (AFP) - General Electric reported mixed third-quarter results Wednesday in its industrial businesses and cited progress in a turnaround effort as the company works to reduce debt.

The industrial giant, which has struggled for more than two years with a weak power market and more recently with a hit to its aviation engine business due to the grounding of the Boeing 737 MAX, boosted some of its full-year forecasts, lifting shares.

GE reported a loss of $9.5 billion, smaller than the loss of $22.8 billion it posted in the year-ago period, with the 2019 results hit by the accounting of a transaction to sell some of its stake in oil services company Baker Hughes.

Revenues were essentially flat at $23.4 billion.

Earnings rose in both aviation and health care, while the power division had a smaller loss than in the year-ago period. The company also reported a loss in its renewable energy business.

GE confirmed its earnings-per-share forecasts and lifted its cash flow outlook, while lowering some of its cost projections.

"Our results reflect another quarter of progress in the transformation of GE," said Chief Executive Lawrence Culp. 

"We have more work to do, and we will continue to take actions to improve our financial position and strengthen our businesses as we prepare for 2020 and beyond."

Shares rose 5.5 percent to $9.57 in pre-market trading.