GE: quarterly loss deepens in 'very challenging' quarter
(CercleFinance.com) - GE reported a greater loss for its second quarter as the company booked large charges relating to the ongoing impact that the Covid-19 pandemic is having on its businesses.
The US industrial group said it had to book goodwill impairment charges of 877 million dollars for its additive manufacturing unit - within the aviation division - along with 839 million dollars relating to its aircraft easing unit GECAS.
GE also booked a 608 million dollar charge to reflect updated billing and costs for long-term service deals at the aviation unit due to COVID-19, notably driven by customer credit risk.
At the bottom line, it said its loss from continuing operations attributable to shareholders reached 2.2 billion dollars over the quarter ended 30 June, compared to a loss of just 61 million dollars a year earlier.
Revenues fell 24% to 17.7 billion dollars and orders dropped by 38% to 13.8 billion dollars in what CEO Lawrence Culp called in a statement "a very challenging second quarter."
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