GE Reports 15% Rise in Revenue
July 22 2016 - 7:40AM
Dow Jones News
General Electric Co. posted a 15% rise in revenue in the most
recent quarter as the company continues to shift its focus toward
industrial businesses and away from banking.
GE shares, up 22% over the past year, slipped 0.6% to $32.40 in
premarket trading as the company also reported a 2% decrease in
orders and described the current business environment as "a
volatile and slow-growth economy."
The company said its power, aviation and health-care segments
offset challenges in transportation and in oil and gas, but that it
expects to see strong organic growth in the second half of the
year.
Over all for the period ended June 30, GE reported a profit of
$2.74 billion, or 36 cents a share, compared with a loss of $1.36
billion, or 17 cents a share, a year earlier.
Revenue rose to $33.49 billion from $29.23 billion.
Excluding the finance businesses being wound down, GE reported a
profit of 51 cents a share, while revenue came in at $24.4
billion.
GE said its industrial profit slipped 5.4% to $4.1 billion in
the quarter.
Last month, the conglomerate's lending arm, GE Capital,
successfully shed its designation as a "systemically important"
financial institution—a label that had required the company to
submit to stricter rules and supervision by the Federal
Reserve—after months of shedding assets of the business, long seen
as a distraction by investors who believed it dragged on the
company's share price.
GE said Friday that the GE Capital exit plan has enabled it to
return $15 billion in dividends year to date, and the company's
de-designation as a systemically important financial institution
gives it more balance sheet flexibility.
"We will continue to invest in key growth initiatives such as GE
Digital, while returning [about] $26 billion to investors through
buyback and dividends," GE Chief Executive Jeff Immelt said.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
July 22, 2016 07:25 ET (11:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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