Northern, WI 04/19/2013 (usastockreport) – General Electric Company (NYSE:GE) (Current: $21.89, Down by 3.40%) posted its first-quarter profit which was on par with analyst estimates. There was a curb in manufacturing growth as sales were lower in the Power & Water business. In a statement, the Fairfield, Connecticut-based company said that adjusted profit from its continuing operations increased to $3.63 billion by 13 percent or 35 cents per share and that this had matched the average analyst estimate of 35 cents per share. The company said that the February sale of its NBC Universal stake had upped its profits by 4 cents.
Jeffrey Immelt, the Chief Executive Officer has already commenced assigning the proceeds of the sale. An amount of $3.3 billion will be spent on acquiring Lufkin Industries, Inc (NASDAQ:LUFK) (Current: $88.23, Down by 0.02%) as well as speeding-up share buybacks. A prominent analyst said that the European market had been weaker than expected. The power and water as well as the gas and oil businesses have been very dull. In a statement, GE said that its revenue in the quarter had not undergone too much of a change and had steadied at $35 billion. The average analyst estimate had been $34.6 billion. A dip in the power and water revenue had led to a 6 percent drop in industrial sales which now stood at $22.7 billion.
Facts and figures
Immelt said that though significantly lesser gas and wind turbine shipments had been anticipated, the power and water services in Europe had brought on the pressure. Transportation has risen by 12 percent while aviation sales rose by 4 percent, which had added impetus to the equipment and services backlog that the GE had been facing, taking the company to a record $216 billion. In the quarter, GE’s industrial business profit margin widened by 40 basis points which excluded the power and water unit. With the inclusion of that unit, the margin decreased to 71 basis points.
At a December meeting with investors and analysts, Immelt had projected a rise of a minimum of 70 basis points for 2013. GE’s net income rose to $3.53 billion by 16 percent, including discontinued businesses and pension costs. This amounted to 35 cents per share and was up from the $3.03 billion or 30 cents per share that it stood at a year earlier.