General Electric (GE) Issues Q4 'Beat' on Strong Industrial, Financial Growth
The diversified technology and financial services company reported a 3.6 percent increase in top-line growth to $39.33 billion, while net income improved 7.5 percent to $4.01 billion, or 38 cents per share. Operating EPS was more robust at 44 cents.
The Street consensus called for revs of $38.71 billion and EPS of 43 cents.
GE Capital (GEC) revenue rose 2 percent in the quarter to $11.77 billion. Profit rose 9 percent to $1.81 billion. Commercial Real Estate profit rose $0.8 billion with assets down $15 billion.
Showing the largest percentage gain was GE's Aviation segment, up 11 percent to $5.47 billion. Energy Management profit had the largest percentage increase, rising 36 percent to $64 million.
Industrial profit rose 12 percent to $4.9 billion on a 120 basis point expansion in margins.
Operating cash rose 48 percent to $17.8 billion for 2012.
"The outlook for developed markets remains uncertain, but we are seeing growth in China and the resource rich countries. With our largest backlog in history and a substantial amount of cash generated by our businesses in the fourth quarter, we have great momentum going into 2013," commented CEO Jeff Immelt. "With our strong backlog and good momentum in margins, we are well-positioned to achieve our 2013 framework: double-digit earnings growth and solid organic revenue growth for the Industrial segment, significant cash returned to the parent company from GE Capital, further margin expansion, and returning cash to shareholders."
GE shares are up about 1.6 percent early.