General Electric profit slips, meets forecasts
General Electric said on Friday its net profit slipped 46 per cent from a year ago to $3.06 billion on losses from its insurance unit, which the conglomerate is exiting.india Updated: Jan 21, 2006 03:33 IST
General Electric said on Friday its net profit slipped 46 per cent from a year ago to $3.06 billion on losses from its insurance unit, which the conglomerate is exiting.
The profit excluding one-time items amounted to 55 cents a share, in line with Wall Street expectations for the diversified conglomerate that produces jet engines, locomotives, water treatment plants, medical devices and operates the NBC Universal media-entertainment arm.
Profit from continuing operations amounted to $5.772 billion, up slightly from the same period a year ago. But the net results were adjusted for a $2.9 billion loss at GE Insurance Solutions and $200 million in earnings from Genworth Financial, classified as discontinued operations as GE seeks to get out of the insurance business.
Revenues from continuing operations edged up 2.6 per cent from a year ago to $40.7 billion for GE, one of the largest US companies.
For the full year 2005, GE's net profit dipped 2.8 per cent to $16.35 billion, while revenues rose 11.3 per cent to $149.7 billion. Profit excluding discontinued operations would be $18.27 billion, GE said.
"We finished 2005 as we expected, with a strong quarter in our business segments that capped an excellent year," said GE chairman and chief executive Jeff Immelt.
"This year, we executed on our organic growth initiatives, strengthened our organisation and improved our portfolio, including the continued exit from the majority of our insurance businesses.