Power outage at GE

General Electric is transforming itself for the future, but the iconic company is still dogged by major problems from the past in its power division.

Profit at GE Power plunged 58% during the second quarter as orders for gas turbines tumbled, GE (GE) said on Friday.

The slump at GE Power, the company’s largest division by revenue, underscores the challenges facing GE even as the company breaks itself apart by selling off its rail, health care, light bulb and other businesses.

GE’s power struggles drove overall earnings down by 30% last quarter, offsetting strength in aviation and health care.

“The biggest challenge we face continues to be working through the turnaround of our power business,” GE CEO John Flannery said during a conference call on Friday.

Flannery said demand for orders has been soft, pressuring GE’s cash flow and working capital.

GE Power has been caught unprepared for the rapid rise of renewable energy. Power plants are switching away from fossil fuels like coal and natural gas in favor of wind and solar.

Related: Meet the new GE: It’s a shell of its former self

The good news is that many on Wall Street feared worse results from the company, which was recently kicked out of the Dow. GE managed to grow overall revenue by 3%, driven by strength in aviation and oil and gas. And despite the continued trouble at GE Power, management maintained its financial outlook for the rest of the year.

GE shares were little changed on Friday morning.

GE is also making progress with slashing costs in an effort to stabilize the company. GE said it has already cut $ 1.1 billion of industrial costs this year and it’s on track to exceed its goal to save $ 2 billion. Much of that belt tightening has occurred at GE Power, which announced plans late last year to cut 12,000 jobs.

Flannery pledged to fix GE Power urgently, but he cautioned that it won’t be a smooth or quick turnaround.

“It’s going to be a multi-year fix, with some volatility,” he said.

Of course, power isn’t the only part of GE that’s hurting. Profit declined by double digits as GE’s locomotive division as well. Even renewable energy, which is primarily onshore wind, suffered a 48% plunge in earnings as orders declined and prices slumped.

The bright spot at GE remains aviation, which makes and services jet engines. Profit, revenue and orders all rose solidly. GE said equipment orders spiked 62% thanks to strong demand for its GEnx and LEAP engines.

Last month, GE announced plans to shrink itself by saying goodbye to its health care, oil and gas and locomotive businesses. It was a dramatic shift for one of America’s great conglomerates.

GE has promised to use the cash to pay down a mountain of debt and simplify a company that grew far too complex in recent years. At one point, GE owned everything from an appliance business and NBC to one of America’s biggest banks.

“We are progressing on our plans to make GE simpler and stronger,” Flannery said on Friday.