July 17, 2009 11:12 AM ET
General Electric Co’s profits tumbled 47 percent in the second quarter due to a lackluster performance from its finance arm and industrial divisions.
GE (NYSE: GE), based in Fairfield, Conn., reported net income of $2.6 billion, down from $5.4 billion in the same period last year. Earnings per share were 24 cents, down from 51 cents a year earlier.
Revenue dropped 17 percent to $39.1 billion, falling short of analysts’ predictions of $42.1 billion.
GE says its lending arm, GE Capital, posted profits of $590 million, 80 percent less than a year ago.
Atlanta-based GE Energy performed best of all of the company’s units in the second quarter. Revenue was down 6 percent from the year-ago period, but profit for the company’s energy segment jumped 13 percent. That unit reported earnings of $3.6 billion on revenue of $20.1 billion. The company attributed the increased profit to “pricing and cost moves.”
Industrial sales fell 7 percent to $26 billion, marked by a decline in demand for appliances, locomotive and hospital equipment.
GE Chairman and CEO Jeffrey Immelt said the company delivered “solid second-quarter results” in a challenging economic environment. It “remains on track to be profitable for the full year,” he said.
GE’s renewable energy business is based in Schenectady. GE Energy, which manufactures turbines, also has an operation in Schenectady. The company’s research headquarters is in nearby Niskayuna.
Copyright 2009 bizjournals.com
Bilibala's comments:
GE's EPS inline with my expectation, need to take a closer look before I can calculate the target price.
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