GE Profit Up 21% in Second Quarter

×
General Electric Co. (GE) said Friday that earnings grew 21 percent in the second quarter as its GE Capital lending arm continued to recover from the recession.

The industrial and financial giant reported income of $3.76 billion, or 35 cents per share, for the three months ended June 30. That compares with $3.11 billion, or 28 cents per share, for the same part of last year.

Revenue fell 4 percent to $35.6 billion, in part because of GE's sale of a majority stake in NBC Universal to Comcast in February.

GE's results beat Wall Street estimates for 32 cents per share on revenue of $34.7 billion, according to FactSet.

GE Capital more than doubled its profit to $1.66 billion during the quarter. The earnings growth signals a continuing rebound for the lending business. After booking billions of dollars in losses and impairments during the recession, GE Capital has been shedding assets. And the commercial real estate market overall has been slowly improving as the U.S. economy gradually recovers.

"We continue to see strong demand for credit," GE Chairman and CEO Jeff Immelt said. Income at GE's consumer and commercial lending businesses grew 57 percent and 100 percent, respectively.

The Fairfield, Conn., company also said that revenue growth was especially strong internationally; including India, China, Southeast Asia, Africa, Russia, Australia, Canada and Latin America.

GE's locomotive business soared from April to June with profits jumping nearly seven-fold to $178 million.

The company's industrial business posted modest results compared with smaller rivals. Medical and industrial instruments maker Danaher Corp.'s earnings jumped 74 percent in the second quarter while United Technologies posted a 19 percent jump in its second-quarter profit.

GE's aviation business recorded a 9 percent increase in earnings, and its health care business increased profits 8 percent. Profits dropped, however, at GE's energy infrastructure business by 19 percent as prices slumped for wind turbines and other renewable energy equipment.

The company has been aggressively expanding its energy business with a string of deals during the last nine months that are worth about $11 billion. GE plans to buy Converteam, Dresser Inc., Wellstream Holdings, Lineage Power Holdings and the well-support business of John Wood Group.

"We are optimistic about our growth prospects in the second half and beyond," Immelt said.

Shares rose 39 cents to $19.55 in premarket trading.

Increase your money and finance knowledge from home

Basics of Diversification

Learn one of the fundamental concepts of building a portfolio.

View Course »

Goal Setting

Want to succeed? Then you need goals!

View Course »

Add a Comment

*0 / 3000 Character Maximum

7 Comments

Filter by:
ieyun313

When you buy from the charity, I paid them anyway, but something that you think or say what a good price if the quality is fine magnetic silver zinger? What are you looking for when buying magnetic silver zinger?
Cheers:
http://magnetic-silver-zinger.blogspot.com/

August 26 2011 at 2:30 AM Report abuse rate up rate down Reply
dabrownman

Because GE capital had huge, actually massive, loan losses when companies couldn't pay their debt (just like people who took out loans for homes they couldn'tt afford) GE has tax losses going forward into future years. You can expect that GE, along with many other companies that have losses in their financial loan portfolios, will not be paying any taxes until their past losses are written offt. It's just the tax code at work and nothing more. Everyone, including individuals, get to write off their investment losses agaisnt their future profits. Ge isn't any more special in this regard than anyone else. It is just that some people have a left wing agenda of hating the companies that employ them and allow all of us us to exist with a job they gave us - for free by the way..

July 24 2011 at 2:38 PM Report abuse rate up rate down Reply
mmcdonald2k

Register to win a free copy of Eye In The Sky Screener. A winner will be announced on the first day of each month. It is the screener professional traders rely on.

Visit www.eyeintheskyscreener.com to register for your free copy today. Simply click the "Request Your Free Copy" button to enter.

"Trading Information @ Your Fingertips!"
Michael McDonald

July 23 2011 at 12:10 AM Report abuse rate up rate down Reply
Fed up Senior

Well now, let's see, based on what GE paid in taxes last year, how much more will they pay with the increase in profits? Oops, totally forgot. Last year they didn't pay one red cent. So., doubtful they will this year either. GE has their money offshore and avoids US taxes. Hey, BO, if you want to balance the budget, pull the tax loopholes for your buddies at GE. AND, I don't just mean for their corporate jets. Slap a surcharge on them for every job out of the US.

July 22 2011 at 2:31 PM Report abuse +2 rate up rate down Reply
captmerit

dont pay a dime ti IRS

July 22 2011 at 1:12 PM Report abuse +2 rate up rate down Reply
luckee8s

TAXES PAID TO US TREASURY $00000000000000000000000000000

WE THE PEOPLE WILL PAY TAXES FOR THEM / WE DONT HAVE LOBBYIST TO WRITE TAX LAW!!!!!!!!

July 22 2011 at 11:42 AM Report abuse +4 rate up rate down Reply
marine1942

Test if we have any investigative reporters----
What amount of sales and profits from overseas ?
Number of American workers vs. overseas workers ?

July 22 2011 at 11:36 AM Report abuse +5 rate up rate down Reply