USA industrial giant General Electric reported net profits of $1.34bn for the second quarter of 2017, 53% less than its earnings for the same quarter in 2016.
Morgan Stanley analyst Nigel Coe said "with no firm news on the strategy and earnings reset" until after the third quarter of this year, he doesn't expect many positive catalysts for the shares, in a recent note to clients.
In the second quarter, Earnings per Share came in at 28 cents, as opposed to expectations of 25 cents.
Revenue from its power business rose 5%, while health care rose 4% and aviation was flat. The company reported a profit of $1.19 billion, or 15 cents a share, down from $2.76 billion, or 36 cents a share, a year earlier. Revenue fell 12 percent to $29.56 billion.
The company stated its full-year prediction for cash flow, profit, revenue and operating margin.
GE also noted that its backlog during the quarter rose 2% year over year to $326.8 billion.
Even though the arrival of a new CEO is a comparative rarity at the manufacturer - Immelt held the job for 16 years and Welch ran the company for 20 - morale is strong and the company's workforce of 300,000 is committed to helping Flannery succeed, said Jeff Bornstein, who will continue as CFO and has been promoted to vice chairman.
GE watched as operations fell 67 percent to $3.6 billion in the previous year, looking back at the loss of its appliances division, which the company had sold. We've reduced our Industrial structural costs year to date by $670 million and we are on track to meet or exceed our $1 billion cost reduction target for the year.
In June, GE announced that Immelt would step down as CEO on August 1, to be replaced by longtime executive John Flannery. The global scale of the Company, along with our ability to innovate industry-leading products and services, will help us navigate the current environment and unlock productivity across our businesses and markets.
Stock: Honeywell stock fell 0.5% in premarket action. The stock closed down 0.9% on Thursday at $26.69. Six-month revenue of $4.5 billion from renewable energy was up 20 percent from previous year.