GE (NYSE: GE) rode the strength of its largest divisions to an unexpectedly strong quarter. Revenue at it huge energy infrastructure business rose 9% to $10.4 billion. Revenue from the firm’s aviation operations rose 11% to $4.7 billion. And revenue from its medical devices segment were up 10% to $4.5 billion. The figures were not only strong; they were evidence that the “new GE” ,based on goods and services which are likely to be in demand over the next several decades, has started to pull out of the recession.
GE’s home & business solutions and capital operations posted mediocre results, but they are parts of the conglomerate that management would rather that Wall St. ignore.
The other piece of important information is that GE’s backlog reached a record high of $189 billion. The road ahead is sunny.
The world’s largest conglomerate announced that it had total revenues of $35.6 billion for in the second quarter. This was down 4% for the same period last year, but up 7% excluding the impact of NBCU, much of which it sold to Comcast. GAAP earnings were $3.5 billion, higher by 10% and GAAP EPS were $0.33 which was up 14%.
GE has tried to sell investors on the notion that it is no longer an old world manufacturing firm, but instead has transformed itself into a critical builder of the energy, transportation, and medical solutions for the world. It even claims it can deliver these products and services “greener” than any other huge multinational can. Wall St. does not care about green. The better earnings will suffice.
Douglas A. McIntyre
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