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General Electric earnings per share up 20%

Staff writer ▼ | January 17, 2014
General Electric (GE) announced fourth-quarter 2013 operating earnings of $5.4 billion, with earnings per share of $0.53, up 20% from the fourth quarter of 2012.
General Electric
General ElectricGeneral Electric (GE) announced fourth-quarter 2013 operating earnings of $5.4 billion, with earnings per share of $0.53, up 20% from the fourth quarter of 2012.


GAAP earnings from continuing operations were $5.0 billion, with earnings per share of $0.49, up 20%. Revenues were $40.4 billion for the quarter, up 3% from the year-ago period, and $146.0 billion for the year.

Industrial segment profits rose 12% to $5.5 billion. Six of seven Industrial segments had positive earnings growth. Industrial segment margins improved 100 basis points over the prior-year period. Infrastructure orders for the quarter were $30.7 billion, up 8%. GE's backlog of equipment and services at the end of the quarter was its highest ever at $244 billion, up $15 billion from the third quarter.

Industrial segment revenues grew 6%, with organic growth of 5%. Growth market revenues were up 10% for the quarter, with double-digit growth in six of nine growth regions, and growth market orders were up 13%. Services revenue grew 6%, with gains in most segments.

During the quarter, GE and CFM (a 50/50 joint venture between GE and Snecma) announced Dubai Airshow wins of more than $40 billion at list price, including GE's largest airline commitment ever, valued at $11 billion at list price, for 300 GE9X engines for Emirates. GE also announced a nearly $700 million contract with Saudi Electricity Company for F-class combined-cycle gas turbines and services, and was awarded 545 megawatts of commitments for wind turbines in Brazil's A-3 auction.

GE's investment in research & development continued to yield new products in 2013, including the release of 14 new Industrial Internet technologies to help airlines, energy companies, hospitals and other customers cut downtime, improve productivity, save fuel and reduce emissions.

GE Capital continued to execute on its strategy of becoming a smaller, more focused financial services business. GE Capital earnings rose 38% including gains from the IPO of our Swiss consumer business, and the BAY disposition. ENI (excluding cash and equivalents) was $380 billion at quarter-end.

Volume was up 5% for the quarter, with attractive returns. General Electric Capital Corporation's (GECC) estimated Tier 1 common ratio (Basel 1) rose 1.2% to 11.4%, and net interest margin was strong at 5%. During the quarter, GECC paid $2 billion in dividends to the parent.


 

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