GE cuts cost outlook for industrial unit after talks with Trian

Features Reuters

The logo of Down Jones Industrial Average stock market index listed company General Electric is shown at their subsidiary company GE Aviation in Santa Ana, California April 13, 2016. REUTERS/Mike Blake (Copyright Reuters 2017)

General Electric Co said it lowered its target for structural costs at its industrial business for this year and the next, after discussions with activist shareholder Nelson Peltz's Trian Fund Management.

Continue Reading Below

The company also forecast a 10.5 percent increase in operating profit for the unit in 2017. GE now expects a profit of $17.2 billion.

GE cut its outlook for 2017 industrial structural costs - selling, general and administrative costs, adjusted corporate operating profit and other costs - to $23.9 billion from $24.9 billion last year, and to $22.9 billion in 2018.

(Reporting by Rachit Vats in Bengaluru; Editing by Saumyadeb Chakrabarty)