Robust Growth Lifts GE Quarterly Profit 20%

General Electric Co. said Wednesday that third-quarter earnings rose 20%, as analysts expected, boosted by strong across-the-board growth in its industrial operations.

GE, the world’s biggest company in terms of stock market capitalization, said earnings rose to $3.18 billion, or 32 cents a share, from $2.65 billion, or 27 cents, a year earlier. Revenue rose 18% to $32.01 billion.

GE shares have risen about 48% in the last year, helped by the company’s steady emphasis on globalization and expansion into electronic commerce and services. The company has not had a negative earnings surprise since 1994.

At GE’s National Broadcasting Co. unit, operating profit increased 10% as revenue climbed 76% to $1.90 billion, helped by its broadcast of the Sydney Olympic Games.

Earnings at GE Capital Services, the world’s biggest non-bank finance company, rose 17%, reflecting the unit’s increasing globalization and diverse operations. GE’s industrial businesses posted revenue growth of 18%.

“In addition to delivering record third-quarter results, GE’s businesses made aggressive moves to position themselves for strong future growth,” said Chief Executive Jack Welch.

Welch said he was comfortable with First Call analysts’ consensus earnings projections of $1.27 a share for full-year 2000, up from $1.07 a share in 1999.

The stock of Fairfield, Conn.-based GE fell $1.44 to close at $56.63 on the New York Stock Exchange.

“They made their number, so I think it’s more of a market problem,” said Larry Horan, an analyst at Parker/Hunter, referring to the stock’s dip.

“There’s no reason to say that GE disappointed here,” said Horan, who maintained his “buy” rating. He said he may change his price target of $62, in place since May.

At a Glance

Other earnings, excluding one-time gains or charges unless noted, include:

* Advanced Micro Devices Inc. posted third-quarter profit that beat official forecasts, as the company made significant inroads against archrival Intel Corp. in the high-end processor market. Profit from operations was $219.3 million, or 64 cents a share, contrasted with a loss of $105.5 million, or a split-adjusted 36 cents, a year ago. Analysts had expected earnings of 66 cents, according to First Call, while unofficial forecasts published on the Internet reached 68 cents. Sales jumped 82% to $1.21 billion. AMD closed up 75 cents at $23.50 on the NYSE before the report.

* Applied Micro Circuits Corp. said fiscal second-quarter profit soared to $35.7 million, or 26 cents a share, from $9.1 million a year ago, beating estimates of 23 cents. Revenue climbed 156% to $97 million. The company, whose chips transmit information on fiber-optic networks, also announced a 2-for-1 stock split.

* Fannie Mae said third-quarter earnings rose 13% to $1.12 billion, or $1.09 a share, a penny better than estimates, fueled by consumers’ demand for housing and mortgage loans. The company’s net mortgage portfolio was $571 billion at the end of its third quarter, up 12% from $504 billion a year ago.

* Gannett Co., the largest U.S. newspaper publisher, said third-quarter earnings rose 5.3% to $208.3 million, or 79 cents a share, as its recent acquisition spree boosted sales 24% to $1.6 billion.

* Harley-Davidson Inc.’s third-quarter earnings rose 27% to $83 million, or 27 cents a share, a penny better than forecasts, as sales increased 15% to $714.1 million.

* Hughes Electronics Corp. said its third-quarter loss widened to $104.3 million, from $41.8 million a year ago. The unit of General Motors Corp. does not report per-share results. Sales rose 3.7% to $1.69 billion. Hughes said growth was hurt by its price increase for DirecTV service and by a loss of more customers than expected after acquiring Primestar Inc.

* Paine Webber Group Inc. said third-quarter earnings fell 1.7% to $135.8 million, or 85 cents a share, as revenue rose 17% to $1.4 billion. The brokerage, which is being bought by UBS, had been expected to earn 83 cents a share. Commissions rose 17% and asset management revenue rose 33%, while revenue from investment banking fell 20%.

* Tricon Global Restaurants Inc. said third-quarter profit from continuing operations rose 2.7% to $115 million, or 77 cents a share, better than the 70 cents analysts expected. The operator of Pizza Hut, KFC and Taco Bell restaurants said sales fell 8.5% to $1.66 billion.