GE reports 10 percent increase in quarterly profits

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Posted 10:27AM on Thursday, January 17, 2002

FAIRFIELD, Conn. - General Electric Co. said Thursday its fourth-quarter earnings rose 10 percent, to $3.93 billion, despite a weak economy and the terrorist attacks. For the three months ended Dec. 31, net income totaled 39 cents per share. That compares with profits of $3.58 billion, or 36 cents per share, in the same quarter last year. The results of the Fairfield-based conglomerate matched the expectations of Wall Street analysts surveyed by Thomson Financial/First Call. "2001 was an especially challenging year," said Jeffrey Immelt, GE's chairman and chief executive. "Despite a global recession and the Sept. 11 terrorist attacks, we delivered double-digit earnings growth. This is a tribute to our great global team and the strength of the GE business model." Immelt said GE remains confident that it will post double-digit earnings growth this year. "We are well positioned to meet our target of 17-18 percent earnings growth in 2002, even if the economy does not recover, and to grow more if a recovery does take place," Immelt said. Revenue for the quarter was $33.97 billion, down 3 percent from $35 billion in the fourth quarter last year. GE's stock fell $1.04 Wednesday to $37.67 ahead of the report on the New York Stock Exchange. GE Capital Services' fourth-quarter profits before accounting changes were $1.4 billion, up 15 percent from $1.22 billion. Power systems reported profits of $1.7 billion, up 82 percent from $934 million in the same period last year. That segment had record demand for its products, including the delivery of 86 heavy-duty gas turbines in the latest quarter, GE said. The aircraft engines segment had $670 million in profits, down 2 percent from $683 million. At the NBC television network, profits were $460 million, down 3 percent from $476 million. NBC announced in October its largest acquisition, Telemundo Communications Group Inc., the No. 2 Spanish-language broadcaster in the United States, for about $2.7 billion in cash and stock. For the year ended Dec. 31, GE earned $13.68 billion, or $1.37 cents per share, on revenue of $126 billion. In the year-ago period, GE earned $12.7 billion, or $1.27 cents per share, on revenue of $130 billion.