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GE’s Revenue, Profit Fall in Third Quarter; GE Capital Earnings Up 13%

October 18, 2013, 07:00 AM
Filed Under: Corporate Earnings

GE announced today third-quarter 2013 operating earnings of $3.7 billion, or $0.36 per share, down 3% and flat respectively from the third quarter of 2012. Excluding restructuring and other charges, operating EPS was $0.40. GAAP earnings from continuing operations were $3.3 billion, or $0.32 per share, down 5% and 3% respectively. Net earnings of $3.2 billion, or $0.31 per share, fell 9% and 6% respectively from the year-ago period. Revenues were $35.7 billion for the quarter, down 1% from the year-ago period, driven by lower revenues in GE Capital due to planned asset reductions, and a negative FX impact of $132 million.

GE Capital continued to decrease the size of its portfolio, while focusing on its core businesses. GE Capital earnings rose 13% on positive results from its Real Estate and Consumer businesses. ENI (excluding cash and equivalents) was $385 billion at quarter-end. Volume was up 6% for the quarter, with good returns. General Electric Capital Corporation’s (GECC) Tier 1 common ratio rose 116 basis points to 11.3%, and net interest margin was strong at 5%. During the quarter, GECC paid $2 billion in dividends to the parent.

“Our third-quarter results were very strong in an improving global business environment,” said GE Chairman and CEO Jeff Immelt. “Orders grew 19% with orders growth around the world. Total segment profit grew 12%, Industrial margins grew 120 basis points in the quarter, and we are on track for planned margin expansion of 70 basis points for the year. GE Capital continues to perform well, and we finished the quarter with a Tier 1 common ratio of 11.3%, up 116 basis points.

To read the full earning release, click here.

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