GE Healthcare’s profits rose 12.1% to $926 million on sales growth of 6.2% to $4.98 billion compared with Q2 2017 as it prepares to be spun out as a standalone company.
Overall profits for GE were off -29.7% to $615 million, or 7¢ per share, on sales growth of 3.5% to $30.10 billion. Adjusted to exclude one-time items, earnings per share were 19¢, a penny ahead of the consensus on Wall Street, where analysts were looking for sales of $29.31 billion.
“With our strategic review now complete, GE is moving forward to implement the strategy and structure we laid out in June. Our focus is on unrelenting execution of this plan to improve operating results, strengthen our balance sheet, accelerate growth across our businesses, and increase shareholder value,” chairman & CEO John Flannery said in prepared remarks. “The second quarter was in line with expectations, and we saw continued strength across many of our segments, especially in aviation and healthcare. We expect the power market to remain challenging and we continue our focus on operational improvement. In the first half of the year, we reduced industrial structural costs by $1.1 billion, more than halfway toward our 2018 goal of more than $2 billion. Our adjusted Industrial free cash flows improved in the first half year over year, and we plan to end 2018 with more than $15 billion of cash.”
GE said it still expects to report adjusted EPS of $1.00 to $1.07 this year.
The news sent GE shares up 0.1% to $13.74 today in pre-market trading, but the stock fell -2.5% to $13.39 per share soon after its $13.72 opening.