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GE earnings up 50%

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Staff writer |
General ElectricGeneral Electric announced very good third-quarter 2012 operating earnings. Q3 earnings are $3.8 billion, $0.36 per share, up 10% and 50% respectively from the third quarter of the last year.

Excluding the effects of the third-quarter 2011 preferred stock redemption, operating earnings per share rose 13%. GAAP earnings from continuing operations were $3.5 billion, or $0.33 per share (up 43%). Revenues were $36.3 billion for the quarter, up 3%, and up 6% excluding FX. Industrial segment revenues grew by 6%, with organic growth of 8%. The strength of GE’s Industrial portfolio was evident.

All Industrial segments had positive earnings growth for the first time since the third quarter of 2005; Energy Infrastructure, Transportation and Home & Business Solutions had double-digit earnings growth.

Total revenues for the quarter were $36.3 billion, up 3%. GE’s third-quarter Industrial segment revenues were $24.8 billion, up 6%. Industrial segment organic revenues were up 8% for the quarter and 10% year-to-date. Industrial segment growth market revenues were up 9%, excluding FX, driven by double-digit growth in China, Latin America, and Africa. GE expects seven of nine growth regions to have double-digit orders growth in 2012.

General Electric CEO Jeff Immelt"The overall environment remains challenging, but GE continues to execute on our growth strategy. GE’s Industrial segments delivered another quarter of strong organic revenue growth, and we ended the quarter with a robust backlog. As expected, our margins increased 70bps over the prior year period, with margin expansion in all five Industrial segments," said GE Chairman and CEO Jeff Immelt.

Infrastructure orders were $21.5 billion, down 5% primarily driven by a decrease in orders for wind turbines. Orders were up 4% excluding the effects of Wind and FX. Year-to-date orders were up 4%, with four out of five Infrastructure businesses showing growth. Pricing on orders was up 0.1% in total for the quarter. During the quarter, GE announced an order to supply 110 Evolution™ Series locomotive kits to Kazakhstan Temir Zholy (KTZ).

Industrial segment profit was up 11% to $3.6 billion and segment operating profits were strong in Energy Infrastructure and Transportation, up 13% and 35% respectively. Cash generated from GE operating activities was up 63% at $10.7 billion. GE ended the quarter with $85 billion of consolidated cash and cash equivalents.

GE Capital earnings grew by 11% in the quarter and ENI was $425 billion at quarter end, ahead of plan. GE Capital Corporation (GECC) returned a $2.4 billion dividend to the parent in the quarter, bringing the year-to-date total to $5.4 billion. Its Tier 1 common ratio remains strong at 10.2%.

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