General Electric Co. will take a charge of $6.2 billion tied to a legacy insurance portfolio, a new setback for a company already struggling with weak sales in some of its industrial markets.
The lingering problems — from a business GE long ago left behind — underscore the high hurdles facing Chief Executive Officer John Flannery as he seeks to overcome flagging demand for the company’s gas turbines, oilfield equipment and locomotives. Flannery, who took over for Jeffrey Immelt in August, is cutting costs and selling assets after GE posted last year’s biggest drop on the Dow Jones Industrial Average.
GE fell 3 percent to $18.20 ahead of regular trading in New York. The dip threatened to undermine a modest rebound in early 2018 after GE had gained 7.5 percent this year through Friday.