Alwyn Scott | Reuters
General Electric Chief Executive Officer John Flannery presents the company’s new strategy and financial targets to investors at a meeting in New York, November 13, 2017.
General Electric restated its 2016 and 2017 earnings results Friday.
The industrial conglomerate reduced its 2016 earnings by 13 cents and its 2017 earnings by 17 cents, according to the company’s filing. GE also reduced its revenue by $220 million for 2016 and $2.2 billion for 2017.
For all earnings prior to 2016, GE is reporting a $4.2 billion decrease for its earnings. The restatement was largely in line with what GE announced during the company’s fourth-quarter call with investors, with no repercussions for the company’s expected 2018 earnings.
The restatement stems from a need to adjust for new revenue recognition rules issued by the Financial Accounting Standards Board, announced in 2014. For GE, this especially applies to its long-term service contracts. GE is expected to report first quarter earnings on April 20 using the new accounting principle.
Shares of GE declined 2 percent in after hours trading Friday.
Read the full restatement filing here.