http://www.latimes.com/business/la-fi-ge15oct15,1,6130346.story? coll=la-headlines-business GE's Profit Jumps 15% Despite Hurricanes The company says its growth globally offset storm-related losses in the third quarter.
From Associated Press
October 15, 2005
STAMFORD, Conn. — General Electric Co. said Friday that its profit rose 15% in the third quarter as growth globally offset hurricane- related losses.
Net income at GE, with businesses as varied as building jet engines and power plants, making loans and operating the NBC television network, rose to $4.67 billion, or 44 cents a share, from $4.07 billion, or 38 cents, a year earlier. Revenue climbed 9% to $41.9 billion.
The results matched analysts' expectations for profit of 44 cents a share, a Thomson Financial survey showed.
"Despite a volatile environment, our fundamentals remain very strong, as we achieved double-digit earnings growth across all six of our businesses," GE Chief Executive Jeffrey Immelt said.
Immelt said GE expected profit growth of 10% to 15% next year. He said he hoped to cut costs by about $1 billion in coming years.
GE's global sales grew 16% in the quarter, and Immelt said China would account for about $5 billion of revenue this year. The company made its first real estate investment in India during the quarter, and acquired South Korea's third-largest credit card company and Turkey's third-largest bank.
GE incurred $377 million in hurricane-related reinsurance losses, but that was partially offset in the third quarter by a gain of about $250 million from the sale of its insurance business.
Profit rose 13% to $603 million at GE's NBC Universal unit even as sales fell 26% to $3 billion from a year earlier, when NBC broadcast the summer Olympics. GE said Universal Pictures' "The 40- Year-Old Virgin" surpassed $100 million in domestic box-office receipts.
GE executives said NBC was making progress in its efforts to rebuild prime-time programming, but forecast losses at NBC Universal in the fourth quarter and next year.
GE expects per-share earnings for the year of $1.81 to $1.83. The consensus of analysts surveyed by Thomson Financial is for earnings of $1.82.
Shares of GE rose 32 cents Friday to $34.34.
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