GE Shares Gain as Q2 Net Income Edges Up 0.9% (GE)

Diversified technology solutions provider, General Electric Company (NYSE: GE) said on Friday that fiscal second quarter profit rose 0.9% as it booked lower costs and expenses. Although earnings and revenue slipped from the year earlier period, adjusted earnings were better-than-expected, sending shares up 4.61% in regular trading hours. The Fairfield, Connecticut-based Company, which under the leadership of Jeffrey Immelt has reduced the conglomerate’s dependency on its financial division in the recent past, has been focusing more on industrial products, which investors perceive it as more valuable for the business. Speaking to analysts during a conference call, Immelt highlighted that the six of the total seven industrial units it operates, posted growth in the fiscal second quarter even as it slashed structural costs. “We executed in a business environment that was slightly improved versus the first quarter,” said Immelt. “Emerging markets remain resilient, and in the U.S. we saw strong growth in orders this quarter,” added Immelt. The CEO also said that margins are expected to widen and segment profits are likely to grow in the second half of the current year. For the fiscal second quarter, the Company reported a net income of $3.13 billion or 30 cents a share compared to a profit of $3.11 billion or 29 cents a share, in the year earlier quarter. Adjusting onetime items, adjusted earnings stood at 36 cents compared to 38 cents a share, in the same quarter of last year. Revenue dipped 3.5% to $35.12 billion. Analysts had forecasted earnings of 35 cents a share on revenue of $35.56 billion, according to a data compiled by Thomson Reuters. Revenue from industrial segments, which comprises products used in wide ranging industries such as aviation, power generation, slipped 0.8% to $25.17 billion; however, profit increased 2.4%, in the recently concluded quarter. Revenue from GE financial unit (GE Capital) declined 3.3% to $10.98 billion. Profit in thus unit plunged 9.4%. Total costs and expenses came down 2.5% to $31.39 billion.