By Chelsey Dulaney
General Electric Co. said growth in its industrial segment again
helped drive better-than-expected earnings in its fourth quarter,
as the company continues a multiyear shift away from reliance on
financial earnings and toward industrial growth.
"The environment remains volatile, but we continue to see
infrastructure growth opportunities," said Chief Executive Jeff
Immelt in a news release.
Mr. Immelt is leading GE through a massive portfolio
transformation, selling assets that don't fit its image as a global
infrastructure company including media, appliances and consumer
finance, and investing in ones that do--like oil and gas, power
generation and advanced manufacturing.
GE is in the process of splitting off its North American retail
finance business, Synchrony Financial, a major step toward
shrinking GE Capital. At the same time it is bulking up industrial
operations with the acquisition of the energy assets of France's
Alstom SA--a $17 billion deal slated to close in mid-2015.
The industrial conglomerate had warned investors last month that
revenue and profit in its oil & gas unit could fall as much as
5% in 2015 as the industry contracts. GE officials have warned that
aggressive cost reductions could be coming.
In the latest quarter, revenue in the segment fell 6%.
With a large portion of its sales overseas, GE is also exposed
to fluctuations in foreign currency, especially the euro.
For the quarter ended Dec. 31, GE posted earnings of $5.15
billion, or 51 cents a share, up from $3.21 billion, or 32 cents a
share, year earlier. Operating earnings were 56 cents a share.
Revenue climbed 4% to $42 billion.
Analysts polled by Thomson Reuters had expected per-share
operating earnings of 55 cents and revenue of $42.16 billion.
Shares rose 0.4% in premarket trading Friday. Distribution of
GE's earnings news release was delayed as the company's site
appeared to be having technical problems.
Overall, industrial segment revenues increased 6% to $31.82
billion from a year earlier. Power and water revenues gained 22%,
while transportation revenues grew 8%.
GE Capital revenues, meanwhile climbed 4% to $11.51 billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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