GE Profit Rises, Helped by Aircraft Engine Sales, Energy

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GE Gas Turbines Factory
Fabrice Dimier/Bloomberg via Getty Images
By JONATHAN FAHEY

NEW YORK -- General Electric Co. posted increased revenue and profit for the fourth quarter on rising sales in emerging markets, higher banking profit, and stronger global sales of aircraft engines and oil and gas drilling equipment.

The company's profit for all of 2013 also rose, though revenue fell slightly, as GE continues its transformation from a sprawling conglomerate to a more focused industrial company that builds and services complex equipment such as CT-scanners, locomotives and gas-fired turbines.

GE (GE) reported net income rose 5 percent to $4.2 billion, or 41 cents a share, for the October-December period on revenue of $40.38 billion. That's up from net income of $4.01 billion, or 38 cents a share, on revenue of $39.16 billion in the fourth quarter of 2012.

Adjusted to remove the effects of one-time items and discontinued operations, GE earned 53 cents a share in the latest period.
That matches what analysts polled by FactSet expected, on average.

GE shares fell 41 cents, or 1.5 percent, to $26.79 in trading about 90 minutes before the market opened Friday.

For the year, GE net income rose 3 percent to $14.06 billion and revenue slipped less than 1 percent to $146.05 billion. GE has been scaling back its financial division, called GE Capital, and it has shed non-industrial divisions such as NBC Universal. It plans to spin off its large consumer credit card business this year.

GE Capital profit surged 38 percent in the quarter to $2.49 billion, helped in part by the sale of assets in Switzerland.

GE's fourth quarter results were also helped by profit growth of 20 percent or more in its aviation, oil and gas, and appliances divisions.

"We saw good conditions in growth markets, strength in the U.S., and a mixed environment in Europe," GE CEO Jeff Immelt said in a statement.

GE said its backlog -- a measure of orders taken but not yet filled -- grew to a record $244 billion in the fourth quarter, up $15 billion from the third quarter.

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lbz1947

This co. GE disgusts me. They are closing down in Ft. Edward, NY. & going to Clearwater, FL. No union, no benefits. I'll never buy another GE product again. Yes poor Jeffie is so good friends with OBAMA.

January 18 2014 at 10:33 AM Report abuse +2 rate up rate down Reply
billcdaly

And probably won't pay any taxes.
Seems "pay your fair share only relates to middle class".

January 18 2014 at 9:33 AM Report abuse +2 rate up rate down Reply
Lynda

wonderful!....I'm super glad GE is very profitable.......NOW.....pay some taxes to the country you live in and everybody will be better off. Come on now.......Don't say you don;t have the money. Give it up.......Be a REAL American company......

January 18 2014 at 9:30 AM Report abuse +2 rate up rate down Reply
business

Here is company which is offshore and pays no or little taxes! Justice??

January 17 2014 at 10:12 PM Report abuse +3 rate up rate down Reply
1 reply to business's comment
ljnace

Correction business: GE and Haliburton were 2 of 8 companies that moved their headquarters off shore and now do not pay Federal Income Tax. Others will follow. GE built a locomotive plant in China and saves a ton of money on the deal and their profits stay in China. That's one reason their [GE] stock rose from around 20 and change to 27-28$ a share.

January 18 2014 at 3:25 PM Report abuse rate up rate down Reply
anitaxhp1

GE Capital, along their medical RIPOFF credit card, Care Credit SUCKS!!!!!!!!
They try to charge you for things you NEVER ask for, percentage rates are SKY HIGH!!!!!!
State of New York went after them for shady practices, and recently they were ORDERED to pay back their customers over $34 MILLION for ripping them off. I had to borrow money from a family member just so I could GET RID of a Care Credit card!!!! I'll NEVER EVER have anything to do with Care Credit and GE Capital, STAY AWAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

January 17 2014 at 8:59 PM Report abuse +2 rate up rate down Reply
dsh1007155

"War" profiteers.

January 17 2014 at 7:07 PM Report abuse +3 rate up rate down Reply
RLTJPS

GE profits are great! GE Appliances Division are the highest Quality of any products on this globe! Louisville Operations in Major Appliances are mdea up of employees that really care about Quality USA made Products. That is typical among the employees of the Jet Engines and Military products. This is not an Obama cult within GE, but real USA proud employees that they make the best on earth products. YES! Buy more Stock in GE - regardless of who the CEO is in 2014. GE continues to be a proud "Made in USA Corporation" and has one of the Best Employee Unions in America, that helps the Bottom Line improve its PROFITS! I love GE STOCK!!!

January 17 2014 at 6:27 PM Report abuse -2 rate up rate down Reply
Bob

Profits rise for GE? They will figure out how to not pay any taxes on it. Emmelt was Obama's job czar for a while. That was his payback for his support for Obama. I wonder what he got in return?

January 17 2014 at 8:48 AM Report abuse +2 rate up rate down Reply
1 reply to Bob's comment
ljnace

That is repuckian propraganda and you know it. Emmett was not the 1st repuckian on Obama's cabinet. Emmett the clown would never support Obama. Again you missed the fraud news memo, GE does not pay Federal Income taxes as they already moved their headquarters off shore. They are just like a bunch of 1%ers, move your money off shore.

January 18 2014 at 3:35 PM Report abuse rate up rate down Reply