New York, NY, United States (4E) – General Electric reported lower profit in the third quarter, though results beat the market’s expectations.
Adjusted profit from continuing operations declined 3 percent to $3.7bn, or 36 cents per share, from $3.8bn, or 36 cents per share, from the previous year, according to the Fairfield, Connecticut-based company’s statement released Friday. The result surpassed the 14 analysts’ average estimate of 35 cents per share according to a survey by Bloomberg News.
GE’s goal of focusing its business on industrial equipment is generating results with orders rising 9 percent, according to Chief Executive Jeff Immelt in a statement.
At the end of the quarter, the industrial giant’s backlog of equipment and services stood at $229bn, the highest in GE’s history.
Third-quarter sales were down 1 percent to $35.7bn, GE said in a statement, lower compared with the average estimate of $36bn by 11 analysts surveyed by Bloomberg News.
The company’s industrial operations revenue rose 3 percent, driven up by a 12 percent gain at the aviation division and an 18 percent increase at the oil and gas unit. The finance arm GE Capital posted sales of $10.7bn, lower by 5 percent from the year-earlier period.
GE said that its per-share earnings were reduced by 2 cents in the quarter, due to costs on settlement of contracts with Avio SpA’s aviation business, which GE bought for $4.3bn.