GE Earnings Rise but Sales Decline
FAIRFIELD, Conn. — General Electric Co. said Thursday that its third-quarter earnings rose 3.2% and sales fell for a second straight quarter as slower growth hurt its plastics, appliances and NBC broadcasting units.
Shares of GE, a component of the Dow Jones industrial average, rose $1.04 to close at $38.95 on the New York Stock Exchange.
Net income at the company increased to $3.28 billion, or 33 cents a share, from $3.18 billion, or 32 cents, in the year-earlier period. The results matched the average forecast of analysts surveyed by Thomson Financial/First Call. Sales dropped 8% to $29.5 billion, partly because of GE’s exit from some finance businesses.
Growth at its power and medical-imaging units is helping to mitigate the effects the Sept 11 terrorist attacks and the slowing economy on the firm’s other units.
Insurance losses related to the attacks cut $400 million, or 4 cents a share, from profit in the quarter.
The World Trade Center and the planes used in the attacks that destroyed the towers were insured by GE. Profit would have risen 16% without the $400 million in losses, the company said.
Profit fell at six of the eight business segments for which the Fairfield, Conn.-based company provides information.
NBC, which agreed Thursday to acquire Telemundo Communications Group Inc., saw profit decline 13% in the quarter as revenue dropped 45%.
The network was hurt by the suspension of advertising during continuous news coverage after the attacks. Results compared with a year-earlier period, when it broadcast the Olympic games.
GE’s stock had dropped about 45% in the 12 months before Chief Executive Jeff Immelt reassured investors at a Sept. 21 meeting that profit would rise at least 10% this year and next. He reiterated the forecast Thursday.
Since the meeting, its shares have risen 28%, though the stock has fallen 31% in the last year.
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