Boston, MA 10/21/2013 (wallstreetpr) – General Electric Company (NYSE:GE) posted strong 3Q2013 results on the back of improved sales of industrial equipment. The results were lower than 3Q12, but managed to beat analysts’ expectations in the tough macro economic situation. Revenues for the third quarter were $35.73 billion as compared to $36.3 billion the last year. Net income also fell to $3.19 billion, a decrease of 9%, from $3.49 billion reported in 3Q12. The earnings were $0.40 per share after removing, restructuring, and other changes. Analysts had expected the earnings to be around $0.35 per share.
GE has been restructuring its businesses as it looks to disinvest from its banking operations and other non-core activities. Revenues slipped by 5% in GE Capital, pulling down GE’s overall revenues. The company has not yet managed to grow revenues from its other segments to compensate for revenue and profit loss from disinvested segments. However, the company has been working hard to do so. The company is targeting business units that build and service equipment, products, and services sold to diverse segments like utilities, hospitals, the oil and gas industry, and aircraft manufacturers around the globe. The company also expects growth to remain strong for the fourth quarter from this segment. The industrial segment contributed $3.97 billion in profits, up by 11%, in the third quarter. Aviation oil and gas, home and business solutions, and transportation divisions declared a growth in profits of more than 10%. The power and water division saw profits rise by 9%, while the healthcare division saw 7% rise in profits. Only the energy management division failed to impress, and profits were down by 57%. GE has operations spread across the globe. Asia (except India), North America, Europe, North Africa, and the Middle East reported growth. Growth in India and Latin America was relatively weak. The order book saw an increase of 19% to $25.7 billion, and the backlog of orders were at an all time high of $229 billion.
Investors will be looking at revenue and profit growth from the core segments of the company. Analysts expect good fourth quarter results.
