General Electric tops profit estimates, overcoming sluggish global economy
GE is betting on markets such as energy and aviation to help it overcome economic malaise highlighted by the UK vote to leave the EU
New York: General Electric Co. reported second-quarter profit that beat analysts’ estimates as the industrial giant shed finance operations and refocused around equipment manufacturing.
Adjusted earnings rose to 51 cents a share, GE said in a statement Friday. That exceeded the 46-cent average of analysts’ estimates compiled by Bloomberg. Sales of $33.3 billion compared with $31.9 billion expected by analysts.
GE is betting on markets such as energy and aviation to help it overcome economic malaise and global uncertainty highlighted by the UK vote to leave the European Union. Chief executive officer Jeffrey Immelt has sold finance and consumer-focused operations while investing in equipment manufacturing and building a complementary software business.
“The diversity and scale of our portfolio enabled the company to perform well despite a volatile and slow-growth economy,” Immelt said in the statement. “We expect strong organic growth in the second half of the year.”
GE climbed 1.5% to $33.08 at 6:40 am in New York before regular trading. The shares rose 4.6% this year through Thursday, compared with a 5.9% increase for the Standard & Poor’s 500 Index.
GE reaffirmed its earlier forecast for 2016 operating earnings, which was $1.45 to $1.55 a share. Bloomberg