FAIRFIELD, Conn. (AP) — General Electric reported larger profits in the second quarter as orders and backlog improved.
The industrial segment’s operating profit, which is its primary focus with the sale of its finance operations pending, climbed 5 percent to $4.4 billion, while revenue was flat at $26.9 billion.
Earnings per share for industrial operating and verticals totaled 31 cents per share.
Analysts surveyed by FactSet forecast earnings of 28 cents per share.
The industrial arm reported that orders increased 8 percent, with strong equipment orders in aviation and power and water. Backlog rose 8 percent to $272 billion.
For the three months ended June 30, GE reported an overall loss of $1.36 billion, or 13 cents per share. That compares with a profit of $3.54 billion, or 35 cents per share, a year earlier. Earnings from continuing operations were 24 cents per share.
GE announced in April that it would sell most of the assets in its GE Capital subsidiary, the latest and most dramatic move by the company to transform itself into a more focused industrial conglomerate that makes large, complicated equipment for other businesses.
Investors had long pushed for GE to get rid of its finance unit, even though it has been very profitable, because it is difficult for investors to understand and predict, and it carries risk.
The Fairfield, Connecticut, company’s stock rose 57 cents, or 2.1 percent, to $27.61 in Friday premarket trading.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GE at http://www.zacks.com/ap/GE
Keywords: General Electric, Earnings Report, Priority Earnings
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