Dow component General Electric Co. reported third-quarter net profit fell 9% to $3.2 billion, or 31 cents a share, from $3.5 billion, or 33 cents share, in the same period last year
Total revenue slipped to $35.7 billion from $36.3 billion
Analysts expected revenue of $36.02 billion
Orders in the U.S. climbed 18% in the period, while those in Europe rose 17% and orders in growth markets picked up 22%
"Our third-quarter results were very strong in an improving global business environment," said GE Chairman and CEO Jeff Immelt in the earnings reléase
"Our industrial strength was broad-based, with six of seven businesses growing earnings."
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By Nathalie Tadena
General Electric Co.'s /quotes/zigman/227468/quotes/nls/ge GE +0.16% third-quarter earnings fell 8.6% as the conglomerate's financial unit posted weaker revenue and restructuring charges hurt results, though the industrial business's results continued to strengthen.
The company has been working to reduce its reliance on its financial arm over the past few years, selling assets including banking and insurance operations. Meanwhile, GE has been building up its industrial businesses, which investors tend to value more highly.
GE has boosted its oil and gas business through a string of acquisitions in recent years, including its $3.3 billion acquisition of Lufkin Industries Inc. The conglomerate has plowed resources into its energy business as it has sold off operations in chemicals, insurance and media.
Overall, GE reported a profit of $3.19 billion, or 31 cents a share, down from $3.49 billion, or 33 cents a share, year earlier. The company's operating earnings, which exclude pension costs, were unchanged from a year earlier at 36 cents a share. Excluding restructuring and other charges, earnings were 40 cents a share. Revenue slipped 1.5% to $35.73 billion.
Analysts polled by Thomson Reuters had expected earnings of 35 cents a share and $35.96 billion in revenue.
Revenue from GE's industrial businesses, which include energy infrastructure and aviation, rose 2.5% to $25.81 billion. The segment's profit climbed 11% with growth in six of its seven businesses.
Meanwhile, revenue from GE Capital fell 5.4% to $10.67 billion, while profit was up 13%. The unit continued to decrease the size of its portfolio while focusing on its core businesses in the latest period, GE said.
Shares were up by 13 cents to $24.81 in premarket trading. Through the close, the stock is up 18% since the start of the year.
By MarketWatch
Boeing Co. said Friday it will reduce production of its 747-8 jumbo jetliner by another 14% in the wake of still-sluggish demand for the large passenger and freighter aircraft.
The Chicago-based plane maker is further reducing monthly production to 1.5 jets from early 2014, having flagged plans earlier this year to trim its current two-per-month output early next year to 1.75.
The new rate will run through 2015 in a move that "aligns us with near-term demand while stabilizing our production flow," according to a statement from Eric Lindblad, vice president and general manager of the 747 program.
"Although we are making a small adjustment to our production rate, it doesn't change our confidence in the 747-8 or our commitment to the program," he added.
Boeing's four-engine 747-8 freighter and 467-seat passenger models have suffered from lagging orders as more air cargo has shifted to ocean shipping while airlines have opted for smaller long-range twin-engine jets.
To date, Boeing has accumulated 107 orders for the updated jumbo, which entered service in 2011, and has since delivered 56 jets, most of them freighters. It has secured five orders so far this year, offset by five cancellations.
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