GE (NYSE: GE) posted earnings that were above average. Jeff Immelt may want to step down from his positions as Obama’s adviser and spend all of his time at the conglomerate to keep GE’s momentum
Revenue for the third quarter was flat at $35.4 billion. Operating income rose only 3% to $3.7 billion. The numbers were misleading. GE’s segment revenue, the best measure of its operations, rose 12%, largely on the power of its large energy infrastructure sales which were higher by 30% to $10.9 billion. Unfortunately, performance at the unit was slightly tarnished as segment operating income fell 9% to $1.5 billion.
| Three Months | Nine Months | |||||||||||||||||||||
| Ended September 30 | Ended September 30 | |||||||||||||||||||||
| (Dollars in millions) | 2011 | 2010 | V% | 2011 | 2010 | V% | ||||||||||||||||
| Revenues | ||||||||||||||||||||||
| Energy Infrastructure | $ | 10,855 | $ | 8,359 | 30 | % | $ | 30,706 | $ | 26,554 | 16 | % | ||||||||||
| Aviation(a) | 4,835 | 4,391 | 10 | % | 13,935 | 12,815 | 9 | % | ||||||||||||||
| Healthcare(a) | 4,332 | 3,958 | 9 | % | 12,920 | 11,793 | 10 | % | ||||||||||||||
| Transportation(a) | 1,287 | 869 | 48 | % | 3,421 | 2,344 | 46 | % | ||||||||||||||
| Home & Business Solutions | 2,094 | 2,125 | (1 | )% | 6,236 | 6,315 | (1 | )% | ||||||||||||||
| GE Capital | 11,148 | 11,101 | – | % | 34,985 | 34,676 | 1 | % | ||||||||||||||
| Total segment revenues | 34,551 | 30,803 | 12 | % | 102,203 | 94,497 | 8 | % | ||||||||||||||
| Corporate items and eliminations(a) | 816 | 4,570 | (82 | )% | 7,124 | 13,871 | (49 | )% | ||||||||||||||
| Consolidated revenues from continuing operations | $ | 35,367 | $ | 35,373 | – | % | $ | 109,327 | $ | 108,368 | 1 | % | ||||||||||
| Segment profit(a) | ||||||||||||||||||||||
| Energy Infrastructure | $ | 1,503 | $ | 1,656 | (9 | )% | $ | 4,436 | $ | 5,047 | (12 | )% | ||||||||||
| Aviation(a) | 862 | 805 | 7 | % | 2,662 | 2,483 | 7 | % | ||||||||||||||
| Healthcare(a) | 608 | 581 | 5 | % | 1,850 | 1,739 | 6 | % | ||||||||||||||
| Transportation(a) | 196 | 101 | 94 | % | 531 | 242 | F | |||||||||||||||
| Home & Business Solutions | 38 | 104 | (63 | )% | 218 | 318 | (31 | )% | ||||||||||||||
| GE Capital | 1,467 | 818 | 79 | % | 4,927 | 2,131 | F | |||||||||||||||
| Total segment profit | 4,674 | 4,065 | 15 | % | 14,624 | 11,960 | 22 | % | ||||||||||||||
| Corporate items and eliminations(a) | (717 | ) | 140 | U | 992 | 300 | F | |||||||||||||||
| GE interest and other financial charges | (356 | ) | (393 | ) | 9 | % | (1,032 | ) | (1,166 | ) | 11 | % | ||||||||||
| GE provision for income taxes | (378 | ) | (705 | ) | 46 | % | (4,437 | ) | (2,479 | ) | (79 | )% | ||||||||||
| Earnings from continuing operations attributable to the Company | 3,223 | 3,107 | 4 | % | 10,147 | 8,615 | 18 | % | ||||||||||||||
| Earnings (loss) from discontinued operations, net of taxes, attributable to the Company | 1 | (1,052 | ) | F | 274 | (1,506 | ) | F | ||||||||||||||
| Consolidated net earnings attributable to the Company | $ | 3,224 | $ | 2,055 | 57 | % | $ | 10,421 | $ | 7,109 | 47 | % | ||||||||||
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