The loss compares with profits of US$1.3 billion in the year-ago period and is due to a US$22 billion write-down announced when GE tapped H. Lawrence Culp as chief executive earlier this month. GE slashed its quarterly dividend from 12 cents to a penny.
Revenues fell 3.6% US$29.6 billion.
The slumping power business also reported lower revenues compared with the year-ago period.
But revenues were higher in most of GE’s other segments, including aviation and health care, two segments that have held up well in recent years. Revenues also increased in oil and gas, a division that had sputtered until recently.
Culp, addressing investors for the first time during an earnings conference call, said GE continues to enjoy strong talent and technology assets, but that the company needs to pivot.
“We need to focus more on customers and competition and frankly less on corporate,” he said, adding that he would emphasize strong daily management as CEO.
GE’s big problem continues to be the power division, which has been beset by overcapacity due in part to the growth of renewable energy sources that has dented demand for GE’s turbines.
GE has described the weak market conditions in power as a multi-year issue and signalled again Tuesday that demand remained weak.
Adding to those woes in September was a technical glitch that temporarily shuttered new plants installed in Texas. Worries about the problem sent shares to multi-year lows that only began to turn around when GE announced Culp’s appointment on October 1.
GE, under former CEO John Flannery, eliminated more than 12,000 jobs, replaced top executives and sold some assets.
Flannery’s replacement, Culp, signalled more change ahead for the troubled power division, announcing plans to split power into two units, one focusing on gas and industrial services and the other comprising steam, grid solutions, nuclear and power conversion.
GE must “materially” change its power organization, Culp said. “It has become clear to us that we must simplify power.”
Culp previously led industrial and healthcare conglomerate Danaher. Some analysts welcomed the appointment of a company outsider and shares have held up since his appointment, even as the broader stock market has retreated during a weak October.
Shares of GE fell 1.4% to US$10.93 in pre-market trading.