Daily News: July 20, 2012

GE Beats Estimates; GE Capital Q2 Earnings Up 31%


GE announced second-quarter 2012 operating earnings of $4 billion, or $0.38 per share on revenues of $36.5 billion, up 7% and 12%, respectively, from the second quarter of 2011. Analysts polled by Thomson Financial had expected EPS of $0.37 on revenue of $36.8 billion.

GE Capital revenues and profit for the second quarter 2012 were $11.5 billion and $2.1 billion, respectively down from $12.4 billion, or 8%, and up from $1.6 billion, or 31%, compared to the same year-ago period. GE said the revenue decline was driven by “planned shrinkage.”

GE Capital’s Commercial Lending and Leasing unit revenues and profit for the second quarter were $4.1 billion and $626 million, respectively, down from $4.7 billion $701 million in the same quarter last year.

“Today’s results demonstrate that we are executing on our growth strategy in the midst of a still volatile global economy,” said GE chairman and CEO Jeff Immelt. “GE Capital’s strong operating performance and capital position allowed it to return a $3 billion dividend to the parent, and our Industrial segments delivered another quarter of double-digit organic revenue growth. Our strategy to invest in growth markets is paying off, as we achieved orders expansion in growth markets of 14% and revenue growth of 17%. We ended the quarter with a record backlog.”

To read GE’s news release, click here.