General Electric Company (NYSE:GE) reported its fourth quarter earnings this morning, posting results which were in-line with consensus estimates for earnings but slightly ahead on revenue. The company reported operating earnings of 53 cents per share on revenue of $40.4 billion for the quarter. GAAP earnings from continuing operations were 49 cents per share. Analysts had been expecting earnings of 53 cents per share on revenue of $40.22 billion.
GE reported that its earnings per share increased 20% compared to the same quarter a year ago. Full-year earnings per share were reported to be $1.64, a 9% increase.
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“GE ended the year with strong fourth-quarter earnings and margin growth in an improving but mixed environment,” said GE Chairman and CEO Jeff Immelt in a statement. “We saw good conditions in growth markets, strength in the U.S., and a mixed environment in Europe. We had strong operating performance for the year and are pleased with our execution in 2013, taking $1.6 billion of cost out, growing margins, reducing the size of GE Capital, and returning more than $18 billion to shareholders.”
Breaking down GE’s earnings
In its Industrial segment, profits rose 12%, and earnings in six of its segments increased. General Electric Company (NYSE:GE) reported 5% growth in organic revenue for its Industrial segment. The company reported a $1.6 billion reduction in structural costs for its Industrial segment in 2013, which was ahead of its plan.
U.S. orders rose 8%, while growth market orders rose 13% and European orders increased 3%. The company’s margins rose 100 basis points compared to the fourth quarter of 2012. For the full year, margins were up 66 basis points excluding GE’s acquisitions.
GE Capital earnings rose 38% including gains, with ENI, excluding cash and equivalents, hitting $380 billion. That includes gains from the initial public offering of GE’s Swiss consumer business and the disposition of BAY. The division posted a GEEC Tier 1 common ratio of 11.4%, which is a 1.2% increase.
GE reports on capital
In all of 2013, General Electric Company (NYSE:GE) returned $18.2 billion to shareholders. The company had $89 billion in consolidated cash and equivalents at the end of 2013. Full-year cash from GE operating activities, excluding taxes related to the NBCUniversal deal, was reported to be $17.4 billion.
It left its framework for 2014 unchanged.
Shares of General Electric Company (NYSE:GE) declined 1% in premarket trading after the results were announced.