In its annual report to the Securities & Exchange Commission (SEC), GE reported that it would restate its earnings for 2016 and 2017 reducing the years’ earnings by 13 cents a share and 16 cents a share, respectively.
The earnings statements are being revised to adhere to new accounting standard, which changes the way companies are allowed to report earnings from long-term contracts with customers. The SEC has been investigating GE (GE) for how it reports these kinds of contracts.
This is the latest in a long series of blows for the legacy brand. In 2017, the company’s stock value suffered, even as the rest of the market surged. In May 2017, GE shares were trading at $28; last week they were below $15.
Last August Jeffrey Immelt, GE’s CEO of 16 years stepped down amid poor performance for the company. In October, he handed his Chairmanship of GE’s board to his successor, John Flannery, several months early. Some blame Immelt’s “culture of confidence” for the fact that the company was able to go so far off the rails.
In the same report to the SEC, GE restated its 2018 profit guidance of $1.00 to $1.07 per share. The company had earlier projected earnings of $2 per share for the year.