GE Capital Q3 Earnings Off 22%
GE announced Q3/14 operating earnings of $3.8 billion, with operating earnings per share of $0.38, up 6% from the third quarter of 2013. Revenues were $36.2 billion for the quarter, up 1% from the year-ago period.
GE reported that its GE Capital unit Q3/14 segment profit was $1.492 billion, down 22% from $1.903 billion a year earlier. GE Capital’s Commercial Lending and Leasing (CLL) unit Q3/14 earnings of $617 million were up 29% from $479 million a year earlier.
The following commentary on GE Capital was excerpted from GE’s news release:
“GE Capital continued its strategy to decrease the size of its non-core portfolio. ENI (excluding cash and equivalents) was at $365 billion at quarter-end, down $6.5 billion from last quarter and down 5% from the year-ago period. GE Capital is on track to close the sale of its GE Money Bank AB (Nordics) consumer finance business in the fourth quarter of 2014. Additionally, GE Capital Aviation Services announced this week an agreement to acquire Milestone Aviation Group, the helicopter lessor, for $1.78 billion. The acquisition is in line with GE Capital’s strategic plan of growing in core areas aligned with GE’s industrial business. GE Capital’s estimated Tier 1 common ratio (Basel 1) rose 79 basis points from the year-ago period to 12.1%, and net interest margin was strong at 5%. Year-to-date, GECC has returned $2.2 billion in dividends to the parent.”
To view the full GE Capital press release, click here.