GE profit surges 16% to $3.53b

General Electric Co posted a first-quarter profit that matched analysts’ estimates, buoyed by sales growth at the aviation and locomotive businesses.

By (Bloomberg)

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Published: Sat 20 Apr 2013, 11:45 PM

Last updated: Fri 3 Apr 2015, 4:54 AM

Adjusted profit from continuing operations rose 13 per cent to $3.63 billion, or 35 cents a share, the Fairfield, Connecticut-based company said on Friday in a statement. That matched the 35-cent average estimate of 13 analysts surveyed by Bloomberg.

The figure excludes gains from GE’s $18.1 billion sale of its stake in NBC Universal in February, which boosted profit by four cents per share, the company said. Chief executive officer Jeffrey Immelt has already begun to redeploy the proceeds, spending $3.3 billion to acquire Lufkin Industries and accelerating share buybacks.

“GE’s markets were mixed,” Immelt said in the statement. “The US and growth markets were in line with expectations. We planned for a continued challenging environment in Europe, but conditions weakened further.”

GE was little changed at $22.65 at 6:58am in New York before the start of regular trading. The shares gained eight per cent this year through Thursday.

Revenue in the quarter was little changed at $35 billion, GE said in the statement, topping the $34.6 billion average estimate in a Bloomberg survey of nine analysts.

Total industrial sales fell six per cent to $22.7 billion, led by a drop in power and water revenue.

Counting pension costs and discontinued businesses, GE’s net income rose 16 per cent to $3.53 billion, or 35 cents a share, from $3.03 billion, or 30 cents, a year earlier.

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