
The General Electric logo. Photo: Smith Collection/Gado via Getty Images
Shares at General Electric dropped 4% on Friday after the company's GE Power division saw its value drop by 58% in the second quarter of the year, reports CNN.
The big picture: The trade ware with China and the rise of renewable energy in the U.S. are contributing to GE's struggles. Earnings dropped 30% in the first quarter and the company is expecting its free cash flow in 2018 to be low in its forecast.
By the numbers: $7 billion of GE's annual revenue comes from China, and imports nearly $2.9 billion in parts from the country including MRI machines, jet engines and wind turbines.
Yes, but: There may be an upside for the company as it was expected to be in worse shape than projected, but overall revenue grew by three percent. The company also made progress in slashing costs with $1.1 billion of industrial costs already cut. They are on track to exceed their goal of $2 billion in cuts.