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Last Update: 18-Jan-13 07:42 ET
General Electric shares rise 3% following beat on EPS and revenues
General Electric (GE $22.05 +0.75) reported fourth quarter earnings of $0.44 per share, $0.01 better than the Capital IQ consensus of $0.43, while revenues rose 3.6% year/year to $39.33 billion versus the $38.76 billion consensus. Industrial sales of $27.3 billion increased 2% YoY. GECC revenues of $11.8 billion increased 2% YoY. Second consecutive quarter with all Industrial segments reporting positive earnings growth Double-digit earnings growth for five of seven Industrial segments 4Q orders up 7% ex. Wind and FX; Growth region orders up 12% Margins up 120 bps YoY, increases in all seven Industrial segments Infrastructure order pricing rose 0.5% for the quarter, and four of six Infrastructure businesses had double-digit growth in orders for equipment, including Oil & Gas, Energy Management, Aviation, and Transportation. Industrial segment profit rose 12% in the fourth quarter to $4.9 billion. All Industrial segments had positive earnings growth for the second consecutive quarter, and five of the seven segments achieved double-digit earnings growth. All Industrial segments also expanded margins in the quarter, with Industrial segment margins up 120 basis points over the prior-year period. Infrastructure orders for the quarter were $28.5 billion, up 2%, and up 7% excluding the effects of a decrease in orders for wind turbines, and FX. The ratio of equipment orders received to orders billed (book-to-bill) was 1.2. GE's backlog of equipment and services at the end of the quarter was its highest ever, at $210 billion. GE Capital earnings grew 9% in the quarter and ENI was $419 billion at quarter end. Commercial Real Estate grew net income to $0.8 billion while shrinking assets by $15 billion. "The outlook for developed markets remains uncertain, but we are seeing growth in China and the resource rich countries. With our largest backlog in history and a substantial amount of cash generated by our businesses in the fourth quarter, we have great momentum going into 2013. With our strong backlog and good momentum in margins, we are well-positioned to achieve our 2013 framework: double-digit earnings growth (consensus +9.9%) and solid organic revenue growth for the Industrial segment, significant cash returned to the parent co from GE Capital, further margin expansion, and returning cash to shareholders."
