(By Balachander) Industrial conglomerate General Electric Co. (NYSE:GE) reported better-than-expected quarterly earnings, and said the company is on course for double-digit profit growth at its Industrial and GE Capital segments this year.
Operating earnings per share (EPS) increased 12 percent to 38 cents from 34 cents in the same period last year, topping market expectations by a penny.
Revenue rose 2 percent to $36.5 billion, yet was shy of consensus estimate of a 3.3 percent growth. Revenue from GE's financial services arm fell 8 percent due to lower assets. Industrial segment revenue climbed 9 percent boosted by transportation and energy with increases of 27 percent and 15 percent, respectively.
GE Capital's earnings jumped 31 percent. Industrial segment earnings increased 7 percent for the second quarter.
"Today's results demonstrate that we are executing on our growth strategy in the midst of a still volatile global economy," commented GE Chairman and CEO Jeff Immelt.
GE Capital's strong operating performance and capital position allowed it to return a $3 billion dividend to the parent, and the company's Industrial segments delivered another quarter of double-digit organic revenue growth, Immelt said.
Earnings from continuing operations attributable to the company increased 2 percent to $3.66 billion.
In the first quarter, GE's operating EPS were 34 cents, on revenue of $35.2 billion. It was GE's Capital Services that recorded 12 percent downside in revenue, whereas industrial units generated 14 percent revenue.
The stock, which has been trading between $14.02 and $21.00 over the past year, ended Thursday's regular trading at $19.80.