GE 2Q profit jumps 13 pct on aviation, oil and gas - WAFB 9 News Baton Rouge, Louisiana News, Weather, Sports

GE 2Q profit jumps 13 pct on aviation, oil and gas

Posted: Updated:
  • NationalMore>>

  • Homeowner who fought off Trump is moving on

    Homeowner who fought off Trump is moving on

    Thursday, July 31 2014 12:07 PM EDT2014-07-31 16:07:27 GMT
    By SAMANTHA HENRY Associated Press She once called Donald Trump "a maggot, a cockroach and a crumb." This week, he remembered her as "an impossible person."More >>
    By SAMANTHA HENRY Associated Press She once called Donald Trump "a maggot, a cockroach and a crumb." This week, he remembered her as "an impossible person."More >>
  • AP Exclusive: Study blames lost calves on panthers

    AP Exclusive: Study blames lost calves on panthers

    Thursday, July 31 2014 12:06 PM EDT2014-07-31 16:06:57 GMT
    Since Florida's frontier days when cattlemen drove their herds through the state's vast fields and forests, ranchers and native panthers have been natural enemies.More >>
    Since Florida's frontier days when cattlemen drove their herds through the state's vast fields and forests, ranchers and native panthers have been natural enemies.More >>
  • Rolex passed among jurors in ex-Va. gov trial

    Rolex passed among jurors in ex-Va. gov trial

    Thursday, July 31 2014 12:03 PM EDT2014-07-31 16:03:27 GMT
    A key witness in the corruption trial of former Virginia Gov. Bob McDonnell testified Thursday that he made a mistake when he bought a Rolex watch for the governor at the first lady's request.More >>
    A key witness in the corruption trial of former Virginia Gov. Bob McDonnell testified Thursday that he made a mistake when he bought a Rolex watch for the governor at the first lady's request.More >>
By JONATHAN FAHEY
AP Energy Writer

NEW YORK (AP) - General Electric's net income rose 13 percent in the second quarter on strong performance from its aviation and oil and gas divisions.

The company said orders, especially those in developing countries, were strong and that the global economic environment continues to be positive.

GE also said that its previously announced plan to spin off its credit card business with an initial public offering is targeted for late July. GE said it plans to sell 15 percent of the company, to be called Synchrony Financial, and raise $3.1 billion in the process. That values all of Synchrony at $20.7 billion.

GE, based in Fairfield, Connecticut, is working to become a more focused industrial conglomerate by shedding divisions such as NBC Universal, real estate and some banking operations.

Second-quarter profit increased to $3.55 billion, or 35 cents per share, from $3.13 billion, or 30 cents per share, in the same quarter a year ago.

Earnings, adjusted for non-recurring costs and to account for discontinued operations, were 39 cents per share, matching the average per-share estimate of analysts surveyed by Zacks Investment Research.

Revenue climbed 3.2 percent to $36.23 billion from $35.12 billion in the same quarter a year ago. Analysts expected $36.26 billion, according to Zacks.

But revenue from the company's industrial segment - which excludes revenue from the finance division that the company is trying to shrink - rose 7 percent in the quarter compared with last year.

Profit from industrial divisions, those that manufacture locomotives, aircraft engines, gas turbines, medical equipment and oil and gas drilling equipment, rose 9 percent for the quarter. Oil and gas profit rose 25 percent and aviation profit rose 12 percent, though transportation fell 14 percent.

Christian Mayes, an analyst at Edward Jones, said the strong performance of the industrial divisions is what investors were hoping to see. "They are moving in the right direction," he said.

GE said that its $17 billion offer for the energy operations of France's Alstom, which was approved by Alstom's board and the French government in June, remains on track to close next year

GE shares rose 17 cents in trading an hour before the market opened Friday. GE shares have dropped $1.42, or 5.1 percent, to $26.61 since the beginning of the year, while the Standard & Poor's 500 index has risen 5.9 percent. However, the stock has risen $2.98, or 13 percent, in the last 12 months.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow