Tuesday, September 16th6.3°C
23373
22754

GE earnings meet expectations; targets late July for spinoff of credit card business

NEW YORK, N.Y. - General Electric's net income rose 13 per cent in the second quarter on strong performance from its aviation and oil and gas divisions.

The company said orders, especially those in developing countries, were strong and that the global economic environment continues to be positive.

GE also said that its previously announced plan to spin off its credit card business with an initial public offering is targeted for late July. GE said it plans to sell 15 per cent of the company, to be called Synchrony Financial, and raise $3.1 billion in the process. That values all of Synchrony at $20.7 billion.

GE, based in Fairfield, Connecticut, is working to become a more focused industrial conglomerate by shedding divisions such as NBC Universal, real estate and some banking operations.

Second-quarter profit increased to $3.55 billion, or 35 cents per share, from $3.13 billion, or 30 cents per share, in the same quarter a year ago.

Earnings, adjusted for non-recurring costs and to account for discontinued operations, were 39 cents per share, matching the average per-share estimate of analysts surveyed by Zacks Investment Research.

Revenue climbed 3.2 per cent to $36.23 billion from $35.12 billion in the same quarter a year ago. Analysts expected $36.26 billion, according to Zacks.

But revenue from the company's industrial segment — which excludes revenue from the finance division that the company is trying to shrink — rose 7 per cent in the quarter compared with last year.

Profit from industrial divisions, those that manufacture locomotives, aircraft engines, gas turbines, medical equipment and oil and gas drilling equipment, rose 9 per cent for the quarter. Oil and gas profit rose 25 per cent and aviation profit rose 12 per cent, though transportation fell 14 per cent.

Christian Mayes, an analyst at Edward Jones, said the strong performance of the industrial divisions is what investors were hoping to see. "They are moving in the right direction," he said.

GE said that its $17 billion offer for the energy operations of France's Alstom, which was approved by Alstom's board and the French government in June, remains on track to close next year

GE shares rose 17 cents in trading an hour before the market opened Friday. GE shares have dropped $1.42, or 5.1 per cent, to $26.61 since the beginning of the year, while the Standard & Poor's 500 index has risen 5.9 per cent. However, the stock has risen $2.98, or 13 per cent, in the last 12 months.

The Canadian Press


Read more Business News

22416


Recent Trending




Today's Market
S&P TSX15482.56-49.021
S&P CDNX981.50-6.43
DJIA17031.1443.63
Nasdaq4518.903-48.696
S&P 5001984.13-1.41
CDN Dollar0.9080+0.0034
Gold1236.60+1.50
Oil92.79-0.13
Lumber349.00+1.00
Natural Gas3.945-0.052

 
Okanagan Companies
Pacific Safety0.18-0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.29-0.01
Cantex0.06-0.01
Anavex Life Sciences0.25+0.01
Metalex Ventures0.065-0.005
Russel Metals36.17-0.09
Copper Mountain Mining2.70-0.18
Colorado Resources0.155-0.01
ReliaBrand Inc0.024-0.0078
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.265-0.01

 



22417

FEATURED Property
17392883131 Harold Road
5 bedrooms 4 baths
$1,599,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...


Price Guarantees

Article written by Linda Bustos Though I’d never recommend “lowest prices” as a unique selling proposition, I notice many retailers use a Price Match Guarantee or even a 110% Guara...


Brangelina and Celebrity vs Philanthropy

This week my wife wrote a blog for our charities website, I thought you may enjoy reading it here: I was planning to write about the incredible philanthropic Miss Angelina when, funnily enough, she ...

_





23073


Member of BC Press Council


22755