General Electric reported lower first-quarter underlying revenue, citing weak sales of oil and gas-drilling equipment, but it forecast a second-half upturn for power-generation products that should help it meet its full-year target.

Shares of the industrial conglomerate were down 1.5 per cent after it said organic revenue, a figure that excludes foreign exchange and discontinued operations, fell 1 per cent. However, GE affirmed its forecast of 2-4 per cent growth for this year. The company cut its full-year outlook for oil and gas equipment sales, saying it now expects a 30 per cent drop. It had previously forecast a 10-15 per cent decline.

“Given the negative revision in the oil and gas outlook, we believe investors will be viewing this growth forecast with scepticism,” RBC Capital Markets analyst Deane Dray said in a research note. Foreign exchange costs decreased the figure by 2 cents a share.

It reported a net loss of $98 million, or 1 cent a share, mainly due to non-cash charges from the sale of financial businesses, part of an ongoing divestiture of the GE Capital unit.

The company said it still expected a full-year profit of $1.45 to $1.55 a share, excluding items.

GE said power generation equipment shipments were low in the first quarter, but it expects a pickup in the second half of the year. As a result, second-half organic revenue should be up 5 per cent, helping the company hit its target, chief executive Jeff Immelt said.

“I feel good about how we’re executing on the power business,” Mr Immelt said, noting anticipated sales of gas turbines and other power generation equipment would be largely responsible for GE hitting its companywide revenue outlook.

The company said first-quarter earnings per share, excluding items, rose 5 percent to 21 cents from a year earlier. Analysts on average were expecting 19 cents.

– (Reuters)