General Electric Co. (GE.N) just can’t seem to escape the drag from the power market.

The shares tumbled after the company said slumping demand for gas turbines will continue to weigh on results for some time. While GE reported second-quarter profit ahead of Wall Street estimates, the beleaguered manufacturer said Friday the power business forced it to cut expectations for 2018 free cash flow.

“The biggest challenge we face continues to be working through the turnaround of our power business,” Chief Executive Officer John Flannery said on a conference call with analysts.

The diminished outlook underscores the depth of GE’s troubles and threatens to damp enthusiasm over its efforts to engineer an overhaul. Flannery unveiled his long-awaited plan last month for a far-reaching restructuring, including a narrowed focus, performance improvements and an exit from health-care equipment and oil and gas.

The results results show “how challenged fundamentals actually are,” Steve Tusa, an analyst at JPMorgan Chase & Co., said in a note to clients.

GE dropped 3.2 per cent to US$13.29 at 10:05 a.m. in New York after sliding as much as 4.2 per cent for the biggest intraday decline in almost two months.

The Boston-based company anticipates industrial free cash flow this year of US$6 billion, the low end of its earlier projection of as much as US$7 billion. The company attributed the reduced expectations to challenges in the power unit.