GE sinks after CEO says he sees no growth in its power business

Markets Insider

• General Electric CEO John Flannery said he expects the company's power unit to continue to struggle.
• The unit posted a 38% drop in profits last quarter.
• Follow GE's stock price in real-time here.

Shares of General Electric sank more than 7% Wednesday, their biggest drop in nine years, after CEO John Flannery said he expects the company's power business to "remain weak through 2020."

His comments were from a presentation, Reuters reported, in which Flannery said "he sees no profit growth at the large GE power business this year."

In its most recent earnings report in April, GE was able to top expectations with healthy growth in its aviation and healthcare businesses. However, the power unit, referenced by Flannery in Wednesday's presentation, saw its profit drop 38% for the quarter, fueled by a 9% decline in sales and a 29% drop in orders.

GE is now trading at less than half of its recent high of $32 set in July 2016.

Get the latest General Electric stock price here.