General Electric Co''s full-year 2017 profit will be at the bottom end of its earlier guidance, company officials said on Tuesday, as it announced more than $11 billion in charges for tax changes and its legacy long-term care insurance portfolio.
Chief Executive John Flannery said his efforts to dig GE out of a hole, which has seen its shares sink 40 percent in the past year, now included thinking about "separately traded assets" in any one of its units, without giving any details. The company said finance arm GE Capital would take a $6.2 billion hit from a reevaluation of its insurance assets. It is the latest sign of problems with the modeling and funding of nursing home and other long-term care in the United States.
Rising to $7.5 billion once Congress'' newly-passed tax changes are accounted for, the figure was more than twice an initial indication of more than $3 billion floated in November.
GE shares fell 3.4 percent to $18.14. Asked how his strategy for the company had evolved since announcing a major overhaul in November, Flannery told a conference call:
"We''ve been taking a comprehensive look at every aspect of the company and that everything was on the table. So that''s been, I''d say, a hallmark of our approach from day one.
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