General Electric Co. ’s operating earnings increased 11 percent to $3.4 billion, or 31 cents per share, in the third quarter. Revenues rose 12 percent to $35 billion, excluding the impact of NBC Universal in which it now owns a 49 percent stake.
At the company’s GE Aviation unit based in Evendale, revenues were up 10 percent to $4.8 billion, and segment profits increased 7 percent to $862 million.
Orders booked during the July-September period increased 14 percent to $5.7 billion compared to the same period in 2010.
A gain from the sale of GE Aviation’s rings business was partially offset by charges related to supplier contract terminations, it said. GE announced in June that it was selling the Pennsylvania-based rings business to Precision Castparts Corp. Terms were not disclosed at the time. The business makes rings used in jet engines that are sold to a number of engine suppliers.
GE did not disclose further details of the supplier contract terminations it cited in a press release.
A redemption of Berkshire Hathaway preferred stock on Oct. 17 cost GE 8 cents per share in lost profits, resulting in net earnings per share of 22 cents. That result was up 22 percent compared to 18 cents in the 2010 period, but it was off 21 percent compared to 28 cents on a continuing operations basis.
Including the impact of NBC Universal, total revenues were flat compared to the 2010 period.
GE’s stock (NYSE: GE) was down 25 cents *1.5 percent) to $16.38 just before noon on Friday. Investors were apparently concerned about shrinking profit margins in GE’s industrial businesses. The broader U.S. stock market was up about 2 percent. Read More
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