Reports related to this article:
Project(s): View 1 related project in PECWeb
Plant(s): View 1 related plant in PECWeb
Released October 19, 2015 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Power and manufacturing leader General Electric Company (NYSE:GE) (GE) (Fairfield, Connecticut) reported a 5% rise in third-quarter 2015 industrial segment operating profit from a year earlier, despite a 1% drop in revenue. Operating profits totaled $4.5 billion, and industrial segment revenues amounted to $26.2 billion. Strong gains in the Power & Water and Aviation segments were enough to overcome a sharp reduction in its Oil & Gas segment. Industrial Info is tracking 23 GE projects worth $979.89 million.
However, bottom-line net earnings for GE, were down 29% at $2.5 billion as the company continued to offload its massive finance arm. Company executives noted that foreign exchange imbalances caused by the strong U.S. dollar, plus the tough oil and gas environment, also took their toll on earnings.
"Foreign exchange was a $1.2 billion drag on industrial segment revenue and a $165 million impact on industrial segment profit," said Chief Financial Officer Jeff Bornstein during GE's earnings conference call.
The Oil & Gas segment reported its third-quarter profit fell 12% to $584 million from the same quarter in 2014. Chief Executive Officer Jeff Immelt said he does not expect the oil and gas market to improve next year. He said Oil & Gas segment revenue might be down 10% to 15% next year.
However, profits for the Power & Water segment rose 7% to $1.27 billion in the third quarter, and the Aviation segment's profits rose 7% to $1.35 billion.
Industrial segment product and service orders were down 26% in the quarter, but the backlog was $270 billion, up 5% from the same period last year.
Company executives said they expect GE's $13 billion-plus acquisition of French engineering firm Alstom S.A. (Levallois-Perret, France) to be completed in the fourth quarter this year.
Industrial Info is tracking 20 GE projects that are in the construction and engineering phases, valued at $970 million. The remaining three projects, worth $11 million, are in the planning phases, where plenty of factors could still alter their timing or ultimate outcome. GE's investments include nine Power Industry projects worth $752 million, and eight Industrial Manufacturing projects worth $201 million.
The project to install sulfur dioxide emission control equipment at the Homer City Generating Station in Pennsylvania alone carries a $700 million price tag. The project involves installation of Alstom NID dry flue-gas desulfurization scrubbers on generating units 1 and 2, which have a combined capacity of 1,320 megawatts (MW). The project kicked off in 2012 and is set for completion in second-quarter 2016. Kiewit Power Engineering, part of Kiewit Corporation (Omaha, Nebraska), is performing the construction.
For related information, see July 30, 2015, article - GE's Industrial Segments Report Good Quarterly Results, Despite Lower Oil & Gas Earnings, and August 3, 2015, article - Alstom Drops Price by $329 Million to Secure GE Takeover.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
However, bottom-line net earnings for GE, were down 29% at $2.5 billion as the company continued to offload its massive finance arm. Company executives noted that foreign exchange imbalances caused by the strong U.S. dollar, plus the tough oil and gas environment, also took their toll on earnings.
"Foreign exchange was a $1.2 billion drag on industrial segment revenue and a $165 million impact on industrial segment profit," said Chief Financial Officer Jeff Bornstein during GE's earnings conference call.
The Oil & Gas segment reported its third-quarter profit fell 12% to $584 million from the same quarter in 2014. Chief Executive Officer Jeff Immelt said he does not expect the oil and gas market to improve next year. He said Oil & Gas segment revenue might be down 10% to 15% next year.
However, profits for the Power & Water segment rose 7% to $1.27 billion in the third quarter, and the Aviation segment's profits rose 7% to $1.35 billion.
Industrial segment product and service orders were down 26% in the quarter, but the backlog was $270 billion, up 5% from the same period last year.
Company executives said they expect GE's $13 billion-plus acquisition of French engineering firm Alstom S.A. (Levallois-Perret, France) to be completed in the fourth quarter this year.
Industrial Info is tracking 20 GE projects that are in the construction and engineering phases, valued at $970 million. The remaining three projects, worth $11 million, are in the planning phases, where plenty of factors could still alter their timing or ultimate outcome. GE's investments include nine Power Industry projects worth $752 million, and eight Industrial Manufacturing projects worth $201 million.
The project to install sulfur dioxide emission control equipment at the Homer City Generating Station in Pennsylvania alone carries a $700 million price tag. The project involves installation of Alstom NID dry flue-gas desulfurization scrubbers on generating units 1 and 2, which have a combined capacity of 1,320 megawatts (MW). The project kicked off in 2012 and is set for completion in second-quarter 2016. Kiewit Power Engineering, part of Kiewit Corporation (Omaha, Nebraska), is performing the construction.
For related information, see July 30, 2015, article - GE's Industrial Segments Report Good Quarterly Results, Despite Lower Oil & Gas Earnings, and August 3, 2015, article - Alstom Drops Price by $329 Million to Secure GE Takeover.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
