Daily News: April 20, 2012

GE Capital Contributes 55% of GE’s Q1 Earnings

GE announced first-quarter 2012 operating earnings of $3.6 billion, up 1% from the first-quarter 2011. Revenues were $35.2 billion for the quarter, down 8% reflecting the non-repeat of the NBCU and Garanti sales in Q1/11 and lower ENI at GE Capital.

“We have previously communicated two significant catalysts for investors: double-digit Industrial earnings growth and the return of the GE Capital dividend to the parent,” said GE chairman and CEO Jeff Immelt. “Today’s results demonstrate that we are achieving Industrial growth and GE Capital continues to grow stronger,” Immelt noted.

GE Capital’s first-quarter earnings were $1.8 billion, flat from last year, but up 27% excluding the Q1/11 Garanti sale impact. The company said it believes that GE Capital’s strong business performance should continue for the year. Margins on new business continue to be attractive, with overall portfolio margins increasing. Real Estate turned its first profit since Q3/08.

The following information on GE Capital was excerpted from the accompanying material to GE’s news release:

GE Capital revenue in first quarter was $11.4 billion, down from $13 billion in the same quarter last year. The finance unit’s first quarter earnings of $1,792 million represented 55.1% of GE’s total earnings from continuing operations of $3,251 million.

Commercial Lending and Leasing (CLL) revenues in the first quarter of $4,442 million were down from $4,608 million, or 4% from last year. CLL earnings in the first quarter of $685 million were up from $554 million, or 24%, compared to last year’s first quarter. As noted above, GE Capital’s real estate unit first quarter earnings of $56 million compared to a loss of $358 million for the same quarter in 2011.

To read the full GE Capital news release, click here.

To read the GE Capital financial report, click here.