GE Reports Profits Up 14 Percent
Jul. 12, 2002
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FAIRFIELD, Conn. (AP) _ General Electric Co. said Friday its second-quarter earnings grew 14 percent, due in part to improved performance at NBC and its power and medical systems, plastics and appliances units.
The huge conglomerate earned $4.4 billion, or 44 cents per share, in the three months ended June 30, up from profits of $3.9 billion, or 39 cents per share, a year ago.
Revenue for the quarter was $33.2 billion, up 4 percent from $32 billion in the second quarter last year.
``GE's diversified portfolio of leading businesses produced another quarter of double-digit earnings growth and strong cash flow,'' said GE chairman and chief executive Jeff Immelt.
The earnings were in line with the expectations of analysts surveyed by Thomson Financial/First Call.
Looking ahead, Immelt said the third quarter ``looks promising'' and said he is comfortable with the targets GE has set for the full year. Analysts are looking for earnings of 41 cents a share for the third quarter and $1.65 a share for the year.
The company said its appliance unit's revenues grew 14 percent in the second quarter, and its plastics unit saw a 25 percent increase in order volume for core products.
Industrial revenues were up 10 percent, with double-digit growth in the power systems, medical systems and appliances and security materials units.
But revenues at GE Capital Services were down 4 percent and its earnings fell 10 percent because of losses by the unit's Employers Reinsurance Corp. and effects of the WorldCom accounting scandal on the value of WorldCom bonds.
GE Capital earned $1.33 billion in the second quarter, down from last year's $1.48 billion.
The company's second-quarter earnings reflected $358 million from a favorable settlement with the Internal Revenue Service of a dispute concerning exports from the aircraft engines unit since 1979.
For the first half of the year, GE earned $6.9 billion, or 69 cents a share, up from $6.5 billion, or 64 cents a share, a year ago. First-half revenue rose to $63.7 billion from $62.5 billion a year ago.