FAIRFIELD (dpa-AFX) - Diversified conglomerate General Electric Co. (GE) Thursday said its first-quarter profit declined from the prior year, but operating earnings came ahead of expectations. Further, the company's Industrial segment reported growth in earnings and revenues. GE said its 2014 framework remains unchanged.
GE Chairman and CEO Jeff Immelt said, 'We had strong results in the first quarter in most of our markets, including Power & Water, Aviation, Oil & Gas, and GE Capital. The environment was generally positive, and we executed on our operational priorities with strong organic growth, margin enhancement, and solid cash generation.'
Net earnings attributable to the company decreased to $2.999 billion from the previous year's $3.527 billion. Earnings per share dropped to $0.30 from $0.34 in the same quarter last year.
Excluding 2013 NBC Universal impact and restructuring and other charges, operating earnings were $0.33 per share, while it totaled $0.39 per share last year.
On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues and other income slid to $34.178 billion from $34.943 billion in the year ago quarter. Analysts estimated revenues of $34.36 billion for the quarter.
Industrial segment revenues grew 8 percent to $24.55 billion, with as much organic growth, and segment profits rose 12 percent to $3.3 billion.
Within the business, Services revenues grew 3 percent, with double-digit growth in Aviation and Oil & Gas. Equipment revenues climbed 12 percent, on strong new product introductions and solid share positions. Power & Water showed a 14 percent improvement in revenue.
Infrastructure orders for the quarter were $23.7 billion, flat with last year. Backlog of equipment and services at the end of the quarter was $245 billion, with increases in every segment over the previous year.
General Electric Capital Corp.'s revenues dropped 8 percent to $10.5 billion. GE Capital's earnings were unchanged from the prior year.
GE said it is on track to achieve its goal of $1 billion or more in structural cost-out for the year. Industrial structural costs in the first quarter were down $254 million from the prior-year period, driven by simplification initiatives and benefits from restructuring investments.
GE closed up 1.2 percent on Wednesday at $26.12. The stock is up 2 percent in pre-market trading.
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