Summary
General Electric (GE) reported solid performance for the third quarter of 2014, with a notable increase in net earnings attributable to the Company, up 11% year-over-year to $3.54 billion. Diluted EPS also saw a healthy increase, reaching $0.35, up from $0.31 in the prior year's quarter. The industrial segments collectively demonstrated strength, with revenues up 3% and segment profit increasing by 9%, driven by robust performance in Aviation, Oil & Gas, and Healthcare. GE Capital's performance showed a decline in segment profit, down 22%, reflecting ongoing efforts to reduce its balance sheet size and focus on core businesses. Key strategic developments during the quarter included progress on the planned exit of the Appliances business and continued efforts to divest non-core assets within GE Capital, demonstrating a commitment to portfolio optimization.
Key Highlights
- 1Consolidated net earnings attributable to the Company increased by 11% to $3.54 billion.
- 2Diluted EPS increased to $0.35 from $0.31 year-over-year.
- 3Industrial segment revenues grew 3%, with segment profit up 9%, driven by strong performance in Aviation, Oil & Gas, and Healthcare.
- 4GE Capital segment profit decreased by 22%, reflecting strategic initiatives to reduce its balance sheet.
- 5The company announced the agreement to sell its Appliances business to Electrolux for $3.3 billion.
- 6Progress was made on the initial public offering (IPO) of Synchrony Financial, a step in a planned staged exit.
- 7Orders increased by 22% year-over-year, and backlog grew to $250.4 billion.