Conglomerate General Electric Co. (GE) reported Friday an attributable net profit in its first quarter, compared to a loss last year. Industrial operating plus Verticals earnings were flat. Consolidated revenues declined, while industrial revenues increased. Further, the company reconfirmed its fiscal 2017 earnings view.
In pre-market activity on the NYSE, GE shares were trading at $30.50, up 0.76 percent.
For the first quarter, net earnings attributable to shareowners were $619 million or $0.07 per share, compared to last year’s loss of $61 million or $0.01 per share.
Attributable earnings from continuing operations were $858 million or $0.10 per share, higher than $248 million or $0.03 per share a year ago.
Industrial operating earnings dropped 13 percent to $1.28 billion. Earnings from Verticals business, which includes the GE Capital businesses expected to be retained, increased 8 percent.
Industrial operating earnings + Verticals earnings were $1.82 billion or $0.21 per share, compared $1.97 billion or $0.21 per share last year.
Excluding gains & restructuring, industrial operating earnings + Verticals earnings per sharewere $0.29, compared to $0.26 last year.
On average, 17 analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts’ estimates typically exclude special items.
Total segment profit climbed 48 percent, reflecting higher industrial segment profit and sharply lower loss in Capital segment.
Total consolidated revenues and other income in the first quarter declined 1 percent to $27.66 billion from $27.85 billion last year. Analysts were looking for revenues of $26.41 billion.
GE revenues, from all affiliated companies except GE Capital, increased 4 percent to $25.48 billion.
Industrial segment revenues were $26.02 billion, a growth of 1 percent on a reported basis and 7 percent organically. Industrial margin dropped 40 basis points.
In the quarter, revenues from power climbed 17 percent and renewable energy grew 22 percent. Meanwhile, revenues from Oil & Gas fell 9 percent and from Energy Connections & Lighting fell 35 percent.
Revenues from financial services business, GE capital, dropped 7 percent from last year.
Orders in the quarter increased 10 percent to $25.7 billion. Backlog was $324.3 billion, up 3 percent from last year.
The company said it closed $7 billion of asset sales in its latest first quarter, reaching $198 billion since GE Capital Exit Plan originally announced.
Jeff Immelt, Chairman and CEO, said, “GE is continuing its portfolio transformation and investing in innovations in GE Digital and GE Additive. Our planned combination of GE Oil & Gas and Baker Hughes remains on track, and we expect the deal to close in mid-2017. We are executing a $2 billion cost out program over 2017 and 2018 to deliver more value to our customers, shareowners, and employees.”
Looking ahead, the company said it reaffirmed 2017 operating framework for Industrial operating + Verticals earnings per share,…