Nebraska News Desk

GE’s Q1 industrial performance ‘impressive’

 Breaking News
  • No posts where found

GE’s Q1 industrial performance ‘impressive’

General Electric on Friday delivered quarterly earnings that beat analysts’ estimates by a penny a share, but revenue fell short of expectations. With GE’s announcement last week to shed its financial services business, the biggest takeaway was that its core industrial business did not slow much in the first quarter, said Jack De Gan, senior adviser at investment management firm Harbor Advisory.635491274971056892-AP-GENERAL-ELECTRIC-ACQUISITION-39755523-1-

Quarterly industrial profit rose 9 percent as GE focuses more on its manufacturing businesses, helped by improved profit margins. Organic growth in the industrial sales were up 3 percent, excluding foreign exchange charges. “In light of the environment and the deterioration in the currencies … I think their industrial performance is pretty impressive,” De Gan said on CNBC’s “Squawk Box.” “I think it was a pretty good performance overall.”

De Gan noted that GE fell just short of guidance issued in December, despite considerable volatility in currency and commodity markets. “We’ve had a very slow first quarter certainly here in the U.S. To just fall 1 percent below a range that was set four months ago, I don’t think is all that bad, especially since oil has continued to drop dramatically year to date, and 12-percent of revenues come from the oil and gas business,” he said. Shares of GE were lower in premarket trading following the announcement. The multinational corporation posted fiscal first-quarter earnings excluding items of 31 cents per share, down from 33 cents a share in the year-earlier period.

Revenue fell to $29.4 billion from $34.18 billion a year ago. Wall Street had expected GE to deliver quarterly earnings per share of 30 cents on $34.23 billion in revenue, according to a consensus estimate from Thompson Reuters. On April 10, the company announced an agreement to sell the bulk of the assets of GE Capital Real Estate for approximately $26.5 billion. The General Electric board also approved a buyback program of up to $50 billion. Overall, GE posted a first-quarter net loss of $13.6 billion, or $1.35 per share. Results were weighed down by about $16 billion in charges tied to its exit of GE Capital assets, which the company disclosed last week in its surprise announcement to shed much of its finance business.

Calendar

February 2018
M T W T F S S
« Jan    
 1234
567891011
12131415161718
19202122232425
262728