General Electric Q3 Net Profit Declines, Revenue Slides

(RTTNews) - Conglomerate General Electric Co. (GE) Friday reported a lower profit for the third quarter, as revenues slid amid challenging times for the Oil & Gas business. However, operating earnings rose, and organic revenues were higher, and the Aviation business performed well in the quarter. Further, the company reaffirmed industrial + verticals earnings guidance for the full year.

"In a volatile environment, GE performed well this quarter, with industrial profit growth, organic revenue growth, and margins up 100 basis points...GE is executing and is on track to deliver on its 2015 goals," Jeff Immelt, Chairman and CEO, said.

After completing the spin off of its former retail finance business, Synchrony Financial, GE plans to launch Synchrony next week. The company expects to retire 6 to 7 percent of GE float by mid-November.

Attributable profit declined 29 percent to $2.506 billion from last year's $3.537 billion. Earnings per share dropped to $0.25 from $0.35.

Earnings from continuing operations attributable to GE common share owners edged up 1 percent to $2.853 billion, and on a per share basis were flat at $0.28

Operating earnings, a non-GAAP measure, rose to $3.30 billion or $0.32 per share from $3.18 billion or $0.31 per share in last year's third quarter.

On average, 14 analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue slipped 1.3 percent to $31.68 billion from $32.11 billion last year, but grew 4 percent organically. Analysts expected revenues of $28.57 billion.

Total Industrial segment revenues slipped 1 percent to $26.243 billion, hit by a 16 percent decline in Oil & Gas revenues to $3.868 billion. Within the segment, Aviation revenues grew 5 percent to $6 billion and Appliances & Lighting revenues were 8 percent higher at $2.293 billion.

For Industrial segment, operating profit rose 5 percent, and was up 9 percent in organic terms with five of its of seven segments growing earnings. Oil & Gas's earnings were flat organically.

For the segment as a whole, orders fell 26 percent in reported terms and were 23 percent lower organically.

The stock added 1.6 percent on Thursday to close at $28.03.