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General Electric (GE) Tops Q1 EPS by 1c

April 17, 2014 6:31 AM EDT

General Electric (NYSE: GE) reported Q1 EPS of $0.33, $0.01 better than the analyst estimate of $0.32. Revenue for the quarter came in at $34.18 billion versus the consensus estimate of $34.45 billion.

“We had strong results in the first quarter in most of our markets, including Power & Water, Aviation, Oil & Gas, and GE Capital,” said GE Chairman and CEO Jeff Immelt. “The environment was generally positive, and we executed on our operational priorities with strong organic growth, margin enhancement, and solid cash generation.”

Industrial segment profits rose 12% to $3.3 billion. Industrial segment margins improved 50 basis points over the prior-year period. Industrial segment revenues grew 8%, with organic growth of 8%. Growth market revenues were up 7% for the quarter, with double-digit growth in five of nine growth regions. Services revenues grew 3%, with double-digit growth in Aviation and Oil & Gas. Equipment revenues grew 12%, on strong new product introductions and solid share positions. The breadth of the GE portfolio was reflected in the quarter as the Company offset market volatility in Appliances, Healthcare, and Mining.

Infrastructure orders for the quarter were $23.7 billion, flat with the year-ago period. GE’s backlog of equipment and services at the end of the quarter was $245 billion, with increases in every segment over the year-ago period. During the quarter, Transnet placed an order for 233 advanced Evolution Series locomotives, valued at approximately $0.7 billion, and Air France-KLM announced the selection of GEnx engines, valued at $1.7 billion at list price, for 37 Boeing 787 Dreamliners. GE also unveiled the world’s largest and most efficient gas turbines, the 9HA and 7HA, with combined cycle efficiencies better than 61%.

GE Capital earnings were flat, with ENI (excluding cash and equivalents) at $374 billion at quarter-end, down $7 billion from last quarter. General Electric Capital Corporation’s (GECC) estimated Tier 1 common ratio (Basel 1) rose 32 basis points to 11.4%, and net interest margin was strong at 4.9%. During the quarter, GECC paid $500 million in dividends to the parent. Also during the quarter, GE filed a registration statement with the SEC for the IPO of its North American Retail Finance business, the first step in a planned, staged exit from that business.

Immelt concluded, “We’re off to a good start to the year, and our 2014 framework remains unchanged. The environment is consistent with our expectations, with a positive bias. The GE team is executing with strong organic growth, consistent margin enhancement, cash growth with disciplined allocation, and a stronger GE Capital. We are on track for our Retail Finance IPO and remain committed to a GE that has 70% of our earnings from the Industrial businesses. GE is in good shape.”

The company reaffirmed its FY14 outlook.

For earnings history and earnings-related data on General Electric (GE) click here.



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