General Electric 4Q Up 51 Percent
Fairfield, CT, United States (AHN) – General Electric rose more than 5 percent on Friday after reporting better-than-expected earnings for the fourth quarter.
The Connecticut-based company said profit for the end of 2010 was $4.5 billion, or 42 cents a share, up 51percent from last year’s $3 billion or 28 cents.
Earnings from continuing operations increased 31 percent to $3.9 billion, with EPS rising from 33 percent to 36 cents.
For the full year, net income was $11.6 billion, up from $11 billion in fiscal 2009.
Fourth-quarter revenues grew 1 percent to $41.4 billion. Revenue from financial servces dropped 2 percent to $12.8 billion last year. Industrial sales rose 1 percent to $28.7 billion.
Revenue for the full year fell 3 percent to $150.2 billion. Financial services fell 4 percent to $50.5 billion while industrial sales slipped 3 percent to $100.2 billion.
Chairman and chief executive Jeff Immelt said he expects growth to continue in 2011 and the following year. He said the company had anticipated the sale of NBC Universal to be completed by the fourth quarter, and the delay resulted in a lower-than-expected tax rate for the period.
“We expect this will contribute to a significantly higher GE tax rate for full-year 2011,” Immelt said.
The sale of 51 percent of NBC is part of a reorganization that began in 2008, when GE cut its businesses from six to four to spur growth.
“We have simplified the portfolio and dramatically reduced risk,” said Immelt, who announced in an op-ed on Friday that he had been chosen to chair the White House Council on Jobs and Competitiveness. “Our framework for 2011 is quite achievable and we are optimistic about the future.”
View full post on All Stories
