General Electric Company (GE) released its second quarter earnings report before opening bell this morning, posting adjusted earnings of 31 cents per share on $32.75 billion in revenue, a 2% year over year increase. Analysts had been expecting earnings of 28 cents per share and $28.7 billion in revenue.
In the same quarter a year ago, GE posted adjusted earnings of 24 cents per share
General Electric Industrial business remains strong
Net losses were $1.4 billion or 13 cents per share (including discontinued operations), compared to last year’s profit of 35 cents per share or $3.55 billon. GAAP earnings from continuing operations fell 14% to 24 cents per share.
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GE’s Industrial business saw a 5% increase in operating profits, with five out of seven segments increasing their earnings and all of them increasing earnings organically. Revenues for the Industrial business were flat at $26.9 billion but posted organic growth of 5%. The segment had a backlog of $272 billion, an 8% year over year increase that also set a new record high.
Orders for the industrial business increased 8% overall and 13% organically, Equipment orders remained strong, with Aviation orders rising 37% and Power and Water orders increasing 29%. The Industrial business by itself posted operating earnings of 26 cents per share, an 18% increase.
GE also upped its guidance for operating earnings in the Industrial segment to between $1.13 and $1.20 per share.
General Electric – GE Capital dispositions ahead of schedule
General Electric has been focusing on disposing of its financial arm, and so far this year, te company has signed off $68 billion of it, putting the GE Capital dispositions ahead of schedule. The company is on track to close about $100 billion of GE Capital dispositions by the end of the year.
The verticals in the GE Capital segment did do well during the second quarter, posting earnings of 5 cents per share and staying on track for earnings of about 15 cents per share this year. GE is aiming for between $120 billion and $150 billion in signings for GE Capital.
Shares of GE rose as much as 2.07% to $27.59 per share in premarket trading this morning.