GE sees dip in profit, but industrial revenue rises

  • Associated Press
  • Friday, April 22, 2016 3:43pm
  • Business

NEW YORK — General Electric Co. reported a slight decrease in its core quarterly profit as the company continues to shed and distance itself from its finance and capital businesses.

The company earned $1.93 billion, or 21 cents per share, down 2 percent from $1.97 billion, or 20 cents per share, a year prior. The figures include only the conglomerate’s industrial businesses. The Fairfield, Connecticut-based company has been shedding its financial and capital units over the last few years in an effort to slim down and refocus on its core businesses.

Overall for the period, the company lost $98 million, or 1 cent per share, including costs associated with its financial units.

Revenue from industrial segments rose 6 percent to $25.87 billion. The company’s power unit, which makes power generation technology, saw revenue rise 13 percent to $5.2 billion, while renewable energy products rose 62 percent to $1.67 billion. Revenue from its aviation segment rose 10 percent to $6.26 billion.

GE has jettisoned most of its financial services units as part of its restructuring move. Last year, it negotiated sales totaling $157 billion as part of the effort. At the same time, it is beefing up its industrial core. It closed a $10.6 billion buyout of French manufacturer Alstom in November of 2015.

Looking ahead, GE expects full-year earnings in the range of $1.45 to $1.55 per share.

GE shares fell 58 cents, or 1.9 percent, to $30.40 in morning trading. They have risen 13 percent in the last 12 months.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.