GE announced today second-quarter 2010 earnings from continuing operations (attributable to GE) of $3.3 billion, with EPS of $0.30 per share up 15% from the second quarter of 2009. Revenues were $37.4 billion for the quarter, down 4% from a year ago, impacted by lower GE Capital assets, industrial dispositions and lower equipment sales as expected.
“GE’s economic environment continues to improve,” GE Chairman and CEO Jeff Immelt said, citing growth in orders, margins and earnings amid other encouraging signs in the quarter. “Equipment orders increased 17%, including 20% growth in the Energy Infrastructure segment and 14% at Technology Infrastructure. Oil & Gas and Healthcare orders were particular bright spots and helped hold total company orders backlog roughly flat, excluding the impact of foreign exchange, according to the company.
Earnings from continuing operations attributable to GE were $3.3 billion, up 14% from $2.9 billion in the second quarter of 2009. EPS from continuing operations was $0.30, up 15% from last year. Segment profit increased 8% compared with the second quarter of 2009, as 93% growth at GE Capital, 13% growth at NBC Universal and 59% growth at Home & Business Solutions, more than offset an 11% earnings decline at Technology Infrastructure.
Including the effects of discontinued operations, second quarter net earnings attributable to GE were $3.1 billion ($0.28 per share attributable to common shareowners) in 2010 compared with $2.7 billion ($0.25 per share attributable to common shareowners) in the second quarter of 2009.
Revenues decreased 4% to $37.4 billion. GE Capital Services’ (GECS) revenues fell 2% versus last year to $13.1 billion. Industrial sales were $24.4 billion, down 6% from the second quarter of 2009.
Revenue at the company’s huge energy infrastructure unit dropped 9% to $9.5 billion. Sales at the NBCU unit of which GE is selling the majority were up 5% to $3.8 million.
| GENERAL ELECTRIC COMPANY | ||||||||||||||||||||||||||||||||||
| Summary of Operating Segments (unaudited) | ||||||||||||||||||||||||||||||||||
| Three Months | Six Months | |||||||||||||||||||||||||||||||||
| Ended June 30 | Ended June 30 | |||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2010 | 2009 | V% | 2010 | 2009 | V% | ||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||
| Energy Infrastructure(a) | $ | 9,540 | $ | 10,459 | (9)% | $ | 18,195 | $ | 19,541 | (7)% | ||||||||||||||||||||||||
| Technology Infrastructure(a) | 9,061 | 9,637 | (6)% | 17,720 | 19,160 | (8)% | ||||||||||||||||||||||||||||
| NBC Universal | 3,750 | 3,565 | 5% | 8,070 | 7,089 | 14% | ||||||||||||||||||||||||||||
| GE Capital(a) | 12,297 | 12,736 | (3)% | 24,628 | 26,511 | (7)% | ||||||||||||||||||||||||||||
| Home & Business Solutions(a) | 2,250 | 2,169 | 4% | 4,190 | 4,093 | 2% | ||||||||||||||||||||||||||||
| Total segment revenues | 36,898 | 38,566 | (4)% | 72,803 | 76,394 | (5)% | ||||||||||||||||||||||||||||
| Corporate items and eliminations | 546 | 542 | 1% | 1,246 | 1,152 | 8% | ||||||||||||||||||||||||||||
| Consolidated revenues from continuing operations | $ | 37,444 | $ | 39,108 | (4)% | $ | 74,049 | $ | 77,546 | (5)% | ||||||||||||||||||||||||
| Segment profit (b) | ||||||||||||||||||||||||||||||||||
| Energy Infrastructure(a) | $ | 1,910 | $ | 1,863 | 3% | $ | 3,391 | $ | 3,181 | 7% | ||||||||||||||||||||||||
| Technology Infrastructure(a) | 1,554 | 1,743 | (11)% | 2,957 | 3,445 | (14)% | ||||||||||||||||||||||||||||
| NBC Universal | 607 | 539 | 13% | 806 | 930 | (13)% | ||||||||||||||||||||||||||||
| GE Capital(a) | 830 | 431 | 93% | 1,437 | 1,460 | (2)% | ||||||||||||||||||||||||||||
| Home & Business Solutions(a) | 143 | 90 | 59% | 214 | 135 | 59% | ||||||||||||||||||||||||||||
| Total segment profit | 5,044 | 4,666 | 8% | 8,805 | 9,151 | (4)% | ||||||||||||||||||||||||||||
| Corporate items and eliminations | (331 | ) | (538 | ) | 38% | (626 | ) | (955 | ) | 34% | ||||||||||||||||||||||||
| GE interest and other financial charges | (430 | ) | (348 | ) | (24)% | (773 | ) | (724 | ) | (7)% | ||||||||||||||||||||||||
| GE provision for income taxes | (986 | ) | (897 | ) | (10)% | (1,774 | ) | (1,739 | ) | (2)% | ||||||||||||||||||||||||
| Earnings from continuing operations attributable to the Company | 3,297 | 2,883 | 14% | 5,632 | 5,733 | (2)% | ||||||||||||||||||||||||||||
Douglas A. McIntyre
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