GE Posts Revenue, Core Earnings Growth
22 Avril 2016 - 1:30PM
Dow Jones News
General Electric Co. on Friday reported growth in revenue and
core earnings, though profit in its industrials business slid.
Shares, up 16% in the past year, slipped 0.7% in light trading
premarket as the company posted an overall loss.
Chief Executive Jeff Immelt said the company continues to
deliver "in a volatile environment."
He said the oil and gas environment is challenging "and the
value of GE is that we are able to offset this with better
performance across the portfolio."
GE is in the midst of a transformation to refocus on its core
industrial businesses like aviation and power.
Meanwhile, the conglomerate continues to make strides to exit
the financial business by shedding assets of GE Capital, which has
long been a distraction for investors who believed it dragged on
the company's share price. Since announcing its dismantling plan
last April, GE has signed some $166 billion in deals. GE filed a
request with federal regulators on March 31 to remove its
designation as a systemically important financial institution,
which would end its supervision by the Federal Reserve.
"Today our portfolio is simpler and stronger," said Mr. Immelt,
adding the company is ahead in its GE Capital exit plan, with $166
billion in deals signed.
Over all for the period ended March 31, GE reported a loss of
$98 million, or a penny a share, compared with a loss of $13.57
billion, or $1.35 a share, a year earlier. Revenue rose 6.1% to
$27.85 billion.
Excluding the finance businesses being wound down, GE reported a
profit of 21 cents a share, while revenue came in at $27.6 billion.
GE said those earnings were dented 2 cents a share by the
industrial segments.
Analysts polled by Thomson Reuters had forecast earnings of 19
cents a share on revenue of $27.62 billion excluding those
businesses.
GE said its industrial operating profit fell 3% to $2.9 billion
in the quarter. Orders slid 7% on an organic basis.
In the previous quarter, GE closed its acquisition of Alstom
SA's energy assets, bulking up its core power equipment business.
GE also split out its renewable energy businesses, including new
acquisitions from Alstom, into a stand-alone business unit.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
April 22, 2016 07:15 ET (11:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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