Summary
General Electric Company (GE) reported its third-quarter 2012 financial results, showing a 5% increase in earnings from continuing operations attributable to the Company, reaching $3.454 billion, with diluted earnings per share (EPS) from continuing operations rising 43% to $0.33. For the nine months ended September 30, 2012, earnings from continuing operations grew 1% to $10.363 billion, and EPS increased 13% to $0.98. Total revenues for the third quarter increased 3% to $36.3 billion, driven by a 7% increase in industrial segment revenues, primarily from Energy Infrastructure and Transportation, which offset a 5% decline in Financial Services (GE Capital) revenues. The company continued its strategy to reduce GE Capital's asset levels. Significant positive movements were also observed in comprehensive income, which saw a substantial increase due to favorable currency translation adjustments. GE also highlighted progress in its operational segments, with Energy Infrastructure showing strong growth in revenues and profit. Discontinued operations presented a net loss for the quarter, primarily due to WMC business reserves and a tax benefit related to a prior plastics business sale. The company maintained a strong liquidity position with $85.5 billion in cash and equivalents at the end of September 2012.
Financial Highlights
41 data points| Revenue | $36.25B |
| Cost of Revenue | $14.42B |
| Gross Profit | $6.03B |
| Operating Expenses | $32.23B |
| Operating Income | $5.24B |
| Net Income | $3.49B |
| EPS (Basic) | $2.64 |
| EPS (Diluted) | $2.64 |
| Shares Outstanding (Basic) | 1.32B |
Key Highlights
- 1Consolidated revenues for Q3 2012 increased 3% to $36.3 billion, driven by industrial segment growth.
- 2Earnings from continuing operations attributable to the Company increased 5% to $3.454 billion in Q3 2012, with EPS up 43% to $0.33.
- 3Energy Infrastructure segment revenue grew 12% in Q3 2012, with profit up 13%, reflecting strong volume increases.
- 4GE Capital revenues decreased 5% in Q3 2012 due to lower ending net investment and a stronger USD, though segment profit increased 11%.
- 5The company maintained a strong liquidity position with $85.5 billion in cash and equivalents at September 30, 2012.
- 6Discontinued operations resulted in a net loss of $37 million in Q3 2012, an improvement from a loss of $65 million in Q3 2011.
- 7GECC's borrowings were reduced by $28.4 billion in the first nine months of 2012 as part of its strategy to reduce asset levels.