Summary
General Electric (GE) reported its first-quarter 2008 results, showing a decrease in earnings from continuing operations, down 12% to $4.361 billion from $4.928 billion in the prior year. Diluted earnings per share (EPS) from continuing operations also declined to $0.44 from $0.48. Overall net earnings saw a 6% decrease to $4.304 billion, with EPS at $0.43. Consolidated revenues grew 8% to $42.3 billion, driven by acquisitions, dispositions, and a weaker U.S. dollar. The Infrastructure segment demonstrated strong revenue growth, up 23%, while Financial Services segments like Commercial Finance and GE Money experienced revenue increases but saw declines in segment profit. The company highlighted the impact of recent acquisitions and the ongoing integration process. GE also continued its share repurchase program, with approximately $13.8 billion remaining authorization.
Key Highlights
- 1Consolidated revenues increased by 8% to $42.3 billion, driven by acquisitions, dispositions, and a weaker U.S. dollar.
- 2Earnings from continuing operations decreased by 12% to $4.361 billion, with diluted EPS falling to $0.44.
- 3The Infrastructure segment showed robust revenue growth of 23%, primarily due to volume increases from acquisitions and organic growth.
- 4Financial services segments, including Commercial Finance and GE Money, experienced revenue growth but a decline in segment profit, with GE Money's profit down 19%.
- 5Discontinued operations resulted in a loss of $57 million, a significant improvement from the $357 million loss in the prior year's quarter.
- 6GE repurchased approximately 34.9 million shares for $1.23 billion during the quarter, with $13.8 billion remaining under its share repurchase program.