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Last Update: 21-Oct-11 10:12 ET
General Electric Reports In-line Earnings
General Electric (GE) reported third quarter earnings of $0.31 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.31. During the quarter, GE gave notice of redemption for the preferred stock held by Berkshire Hathaway, and subsequently redeemed the shares on October 17, 2011 for $3.3 billion. As expected, the redemption resulted in a $0.08 per share one-time impact. GAAP EPS was $0.22.
Revenues were unchanged from the year-ago period at $35.37 billion (+12% ex-NBCU).
For its fiscal year 2012, the company expects operating EPS growth in the double digits versus estimates calling for growth of 15.2% over fiscal year 2011 consensus.
Industrial orders grew 16% year/year, which is the fourth straight quarter of double-digit growth. GE also announced more than $3 billion in new customer wins across its Energy business during the quarter. GE's third quarter Industrial segment revenues were $23.4 billion, up 19%. GE's Industrial segments experienced double-digit revenue growth both domestically and internationally with international revenues up 25% driven by strong double-digit growth in Brazil, Russia, China, India, Canada, Mexico and the Middle East.
"GE Capital executed across all of its businesses, earning $1.5 billion after tax, an increase of 79% year/year. We grew GE Capital volume to $43 billion, up 15%. GE Capital's margins remained strong at 5.4% year-to-date and the business continues to benefit from the credit cycle recovery. GE Capital continued to strengthen its capital ratios and liquidity during the quarter. GECC and GECS Tier 1 common ratios were up to 11.0% and 9.6% and we have reduced leverage across the portfolio."
Total segment profit was up 15% to $4.7 billion. Margins declined from a year-ago primarily driven by Wind pricing in Energy. GE expects Industrial margins to improve sequentially in fourth quarter. At quarter-end GE had $91 billion of consolidated cash. GE's cash position enabled the co to repurchase $1 billion of common stock during the third quarter and has enabled $3.7 billion in stock repurchases since the buyback program was restarted in the third quarter 2010.
Revenues were unchanged from the year-ago period at $35.37 billion (+12% ex-NBCU).
For its fiscal year 2012, the company expects operating EPS growth in the double digits versus estimates calling for growth of 15.2% over fiscal year 2011 consensus.
Industrial orders grew 16% year/year, which is the fourth straight quarter of double-digit growth. GE also announced more than $3 billion in new customer wins across its Energy business during the quarter. GE's third quarter Industrial segment revenues were $23.4 billion, up 19%. GE's Industrial segments experienced double-digit revenue growth both domestically and internationally with international revenues up 25% driven by strong double-digit growth in Brazil, Russia, China, India, Canada, Mexico and the Middle East.
"GE Capital executed across all of its businesses, earning $1.5 billion after tax, an increase of 79% year/year. We grew GE Capital volume to $43 billion, up 15%. GE Capital's margins remained strong at 5.4% year-to-date and the business continues to benefit from the credit cycle recovery. GE Capital continued to strengthen its capital ratios and liquidity during the quarter. GECC and GECS Tier 1 common ratios were up to 11.0% and 9.6% and we have reduced leverage across the portfolio."
Total segment profit was up 15% to $4.7 billion. Margins declined from a year-ago primarily driven by Wind pricing in Energy. GE expects Industrial margins to improve sequentially in fourth quarter. At quarter-end GE had $91 billion of consolidated cash. GE's cash position enabled the co to repurchase $1 billion of common stock during the third quarter and has enabled $3.7 billion in stock repurchases since the buyback program was restarted in the third quarter 2010.
