General Electric (NYSE:GE) Share Price Rises as Earnings Beat Estimates
iNVEZZ.com (Sofia), Friday, July 19th: US industrial giant General Electric Co (NYSE:GE) today reported quarterly earnings that surpassed analysts’ estimates. GE’s share price soared more than two percent in pre-market trading on the NYSE today.
**Q2 Operating Earnings Exceed Expectations**
Connecticut-based General Electric reported operating earnings for the second quarter of 2013 of $0.36 per share, down five percent from the second quarter of 2012 but exceeding the consensus estimate of $0.35 per share.
GE’s net earnings were $3.1 billion (£2 billion), or $0.30 per share, up one percent and three percent respectively from the year-ago period. Revenues declined four percent to $35.1 billion (£23 billion), as compared with the second quarter of 2012.
**Backlog Hits Record High**
GE’s Chairman and CEO Jeff Immelt said that emerging markets have remained strong, whereas orders in the US have shown “strong growth”. Europe has stabilised but remained challenging. GE’s backlog of equipment and services, a closely watched indicator of future sales, rose to record high $223 billion (£146.3 billion), up $7 billion (£4.6 billion) from the first quarter. During the second quarter, GE and its aircraft engine joint ventures announced aviation wins totalling more than $26 billion (£17 billion) at the Paris Air Show.
Among the quarterly statement highlights was the $3.3 billion (£2.1 billion) acquisition of pump manufacturer Lufkin Industries, with the transaction having closed on July 1. General Electric has been heavily investing in its oil and gas division in recent years while trying to shrink its finance business. Earnings at the company’s financial unit, GE Capital, fell nine percent.
**GE’s share price was 2.41 percent up at $24.20 in pre-market trading in New York as of 08:59 EDT on 19 July 2013.**
To contact the reporters on this story: Tsveta Zikolova in Sofia at [email protected]
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