General Electric and Honeywell released their third quarter earnings reports before opening bell this morning. GE posted adjusted earnings of 29 cents per share, a 16% increase on revenue of $31.68 billion, a 1% decline. Analysts had been looking for earnings of 26 cents per share and $28.57 billion in revenue for the quarter.
Honeywell posted net earnings of $1.60 per share on net sales of $9.61 billion. Analysts had been looking for earnings of $1.55 per share and revenue of $9.85 billion per share, a 5% year over year decline. In the same quarter last year, the company posted net earnings of $1.47 per share and net sales of $10.11 billion.
Aviation boosts General Electric’s profits
GE posted GAAP earnings from continuing operations of 28 cents per share, which was flat with last year. Overall earnings were 25 cents per share, compared to last year’s 35 cents per share. Five of General Electric’s seven segments reported an increase in earnings. Industrial plus verticals revenues were $27.9 billion.
The Industrial segment recorded an operating performance of 25 cents per share, a 9% increase. Orders for the segment fell 26% to $23.2 billion, although revenue only declined 1% to $26.2 billion. Industrial sales were $25.6 billion. Operating profits for the Industrial segment increased 5%. The Industrial segments operating margins rose 100 basis points, and gross margins were up 80 basis points to 27.6%. GE had an order backlog of $270 billion, a 5% year over year increase.
GE Capital revenue was $6.3 billion. ENI, excluding liquidity, fell 52% to $176 billion. GECC had a Tier 1 Common Ratio of 13.7% at the end of the third quarter.
As of this writing, shares of General Electric were down 1.25% at $27.65 per share in premarket trades.
Honeywell’s expenses fall
Honeywell said the stronger U.S. dollar weighed on its international sales, dragging revenue down lower than expectations. The company did report a 7% decline in expenses, however, and an increase in operating margins from 16.2% to 18.3%.
The aerospace business recorded a 2% decline in sales to $3.82 billion. Excluding currency impacts, sales in the segment increased about 2%. The automation and controls segment saw sales fall 3% to $3.57 billion, but excluding currency impacts, sales in the segment increased 3%. The Performance Materials and Technologies saw sales fall 13% but only 3% organically to $2.2 billion.
Honeywell management trimmed their sales forecast for this year from between $39 billion and $39.6 billion to about $38.7 billion. They maintained their profit guide of $6.10 per share in earnings.
As of this writing, shares of Honeywell were trading at $98.95 per share in premarket hours.