General Electric (GE 30.47, +0.20) has added 0.7% in pre-market after reporting better than expected results for the first quarter.
The industrial conglomerate delivered above-consensus first quarter earnings of $0.21 per share on revenue of $27.66 billion, which declined 0.7% year-over-year, but was still ahead of market expectations.
Most notably, the industrial giant reported a first quarter profit of $619 million after recording a $61 million loss one year ago.
Industrial segment organic revenue grew 7.0% year-over-year to $26.00 billion while equipment and service orders grew 10.0% to $25.70 billion. Backlog increased 3.0% to $324.30 billion. Industrial operating margin expanded 130 basis points to 12.6%.
The company noted that it sold $7 billion of GE Capital assets during the first quarter, bringing total asset sales to $198 million since the company announced its exit from the business. All major transactions related to that exit have been completed.
The company's integration of GE Oil & Gas and Baker Hughes remains on track to be completed in mid-2017.
Looking ahead, GE reaffirmed its guidance for the fiscal year, expecting to generate earnings between $1.60 and $1.70 per share, which compares favorably to current market expectations. The company is targeting industrial operating profit of $17.20 billion and organic growth between 3.0% and 5.0%. Margins are expected to expand by about 100 basis points. General Electric is aiming to reduce its costs by $2 billion between 2017 and 2018.