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GE Q3 Revenue slips 1.5%

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General Electric Company (NYSE: GE) said on Friday that fiscal third quarter earnings fell 8.6% as lower revenue from its financial unit, GE Capital, which the company is scaling down and restructuring expenses masked its aggressive costs cutting initiatives at its industrial division.

Shares edged higher as core earnings edged past analysts’ expectation.

Speaking to analysts and investors during conference call, GE Chief Executive, Jeffrey Immelt said that results will show improvement both in the current quarter and next fiscal year. The CEO anticipates improved orders for its gas turbines in the fiscal fourth quarter and sees more scope in reducing GE’s manufacturing facilities, including more cost cutting measures.

For the latest period, GE posted a profit of $3.19 billion or 31 cents a share, compared to an income of $3.49 billion or 33 cents a share, in the year-ago period. Operating earnings, which excludes pension costs, remained flat at 36 cents a share. Stripping out items such as restructuring expenses and other charges, the adjusted earnings stood at 40 cents a share.

Revenue for the quarter slipped 1.5% to $35.73 billion.

Margin improved by 120 basis points. Mr. Immelt said that the Company slashed $1 billion in costs thus far this year.

Revenue from the industrial segment, which focuses on wide ranging industries such as energy infrastructure, aviation, increased 2.5% to $25.81 billion. Profit rose 11% in the industrial business segment from the year-ago quarter with six of its seven business areas showing growth. Meanwhile, revenue from GE Capital dipped 5.4% to $10.67 billion, but profit climbed 13%.

 








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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