Jan. 21--General Electric Co.'s stock fell 2.18 percent yesterday after the Boston-based industrial giant reported fourth-quarter revenue that continued to be challenged by an oil market slump and missed Wall Street forecasts.
"GE executed well in a slow-growth and volatile environment," chairman and CEO Jeff Immelt said.
GE's revenue rose 2.4 percent to $33.09 billion, falling short of analysts' forecast for $33.9 billion. Net income increased 35.4 percent to $3.48 billion, and GE's adjusted earnings of 46 cents per share met Wall Street expectations.
GE's aviation, health
care and renewable energy businesses had strong years, but the company failed to close a few big power deals, its restructuring costs exceeded gains for the year, and it saw weaker demand for its industrial equipment due to the weak oil market.
Last year was extremely difficult for GE's oil and gas segment, according to chief financial officer Jeff Bornstein, with its fourth-quarter revenue dropping 22 percent amid the decline and slow recovery of crude oil prices.
"And the business expects the first half of 2017 will continue to remain challenging with sequential improvements in the second half of the year," Bornstein said. "External market indicators appear to be stabilizing, with expected more balanced supply and demand fundamentals."
Immelt is hedging that new power and aviation products will offset the company's weak oil business after GE shed most of its financial businesses.
GE's stock fell the most in almost three months yesterday, finishing at $30.53 after dropping to $30.30.
"Overall results seem largely in line with GE's prior outlook," Citi analyst Andrew Kaplowitz said, "albeit with some moving parts that could keep skeptical investors on the sidelines in the near term."
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