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Released July 20, 2015 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Power and manufacturing leader General Electric Company (NYSE:GE) (GE) (Fairfield, Connecticut) reported it had a strong second quarter, as profit gains in its Power & Water, Aviation and Transportation segments outweighed a 12% drop in its Oil & Gas segment. Total industrial segment profit rose 5% to $4.36 billion, in comparison with $4.17 billion in the same quarter last year.
However, the quarterly net results were in the red in connection with GE's move to dispose of its financial arm. GE's finance business, GE Capital, posted a $218 million profit in the second quarter, a 78% drop from more than $1 billion in second-quarter 2014. Including losses from discontinued operations, GE posted a net loss of $1.36 billion, compared with net profits of $3.55 billion in the same quarter last year. Revenues for the quarter totaled $32.75 billion, compared with $32.26 billion in the same quarter a year earlier.
"We continue to execute on our plan to exit GE Capital, with $68 billion in dispositions announced this year, and are on track for our goal of closing $10 billion in 2015," said Chief Executive Officer Jeff Immelt in a press statement.
Industrial Info is tracking 29 projects worth $1.81 billion involving GE. This includes the 1,320-megawatt (MW), coal-fired units 1 and 2 sulfur dioxide control project in Homer City, Pennsylvania, valued at $700 million. Construction began in second-quarter 2013, and completion is expected in first-quarter 2016. EME Homer City Generation LP (Chicago, Illinois) is working with Kiewit Corporation (Omaha, Nebraska) on the project.
Chief Financial Officer Jeff Bornstein provided a look at each of the business segment's second-quarter results. The Power & Water segment saw orders rise 22% to $7.8 billion, he said during the company's earnings conference call. This included 888 orders for wind turbines, versus 715 orders at this time last year. Bornstein said the company expects to have 3,000 to 3,200 wind turbine shipments this year, and 100 to 105 gas turbines.
The Aviation segment profit rose 6% to $1.27 billion in the second quarter, Bornstein said, with $7.6 billion in product orders. The Transportation segment profit totaled $331 million, up 23% despite a 5% drop in overall orders. North American orders for locomotives were down by 99 units, Bornstein said, but those were partially offset by international orders.
The Oil & Gas segment profit dropped to $583 million from $665 million a year earlier. The segment reported $4.2 billion in second-quarter orders, down 20%, Bornstein said, who added the segment was working to trim costs by $600 million this year.
Immelt said the company was still hoping to achieve its acquisition of Alstom S.A. (Levallois-Perret, France) later this year. He said GE hoped to allay the concerns of European Union anti-trust regulators, adding he expects a decision by regulators in September.
For related information, see April 20, 2015, article - GE Rides Industrial Growth in First-Quarter 2015, with Aviation, Locomotive Sales Chugging.
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, the quarterly net results were in the red in connection with GE's move to dispose of its financial arm. GE's finance business, GE Capital, posted a $218 million profit in the second quarter, a 78% drop from more than $1 billion in second-quarter 2014. Including losses from discontinued operations, GE posted a net loss of $1.36 billion, compared with net profits of $3.55 billion in the same quarter last year. Revenues for the quarter totaled $32.75 billion, compared with $32.26 billion in the same quarter a year earlier.
"We continue to execute on our plan to exit GE Capital, with $68 billion in dispositions announced this year, and are on track for our goal of closing $10 billion in 2015," said Chief Executive Officer Jeff Immelt in a press statement.
Industrial Info is tracking 29 projects worth $1.81 billion involving GE. This includes the 1,320-megawatt (MW), coal-fired units 1 and 2 sulfur dioxide control project in Homer City, Pennsylvania, valued at $700 million. Construction began in second-quarter 2013, and completion is expected in first-quarter 2016. EME Homer City Generation LP (Chicago, Illinois) is working with Kiewit Corporation (Omaha, Nebraska) on the project.
Chief Financial Officer Jeff Bornstein provided a look at each of the business segment's second-quarter results. The Power & Water segment saw orders rise 22% to $7.8 billion, he said during the company's earnings conference call. This included 888 orders for wind turbines, versus 715 orders at this time last year. Bornstein said the company expects to have 3,000 to 3,200 wind turbine shipments this year, and 100 to 105 gas turbines.
The Aviation segment profit rose 6% to $1.27 billion in the second quarter, Bornstein said, with $7.6 billion in product orders. The Transportation segment profit totaled $331 million, up 23% despite a 5% drop in overall orders. North American orders for locomotives were down by 99 units, Bornstein said, but those were partially offset by international orders.
The Oil & Gas segment profit dropped to $583 million from $665 million a year earlier. The segment reported $4.2 billion in second-quarter orders, down 20%, Bornstein said, who added the segment was working to trim costs by $600 million this year.
Immelt said the company was still hoping to achieve its acquisition of Alstom S.A. (Levallois-Perret, France) later this year. He said GE hoped to allay the concerns of European Union anti-trust regulators, adding he expects a decision by regulators in September.
For related information, see April 20, 2015, article - GE Rides Industrial Growth in First-Quarter 2015, with Aviation, Locomotive Sales Chugging.
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.
