GE Energy reports 15% Q2 profit growth
Group revenues up 2% at $36.5bn for the quarter
GE has released its second quarter results for 2012, showing a 7% increase in 2012 Operating Earnings to US $4 billion from Q2 2011.Revenues were $36.5 billion for the quarter, with the firm’s industrial segment revenue up 9% on strong profit increases in Energy, Oil & Gas and Transportation.
Infrastructure orders at the firm – recorded at $23.1 billion – were down 1% this quarter, driven down by a steep 37% decline in wind turbine orders. The group’s industrial segment organic revenues were up 10% this quarter, with growth market revenues of 17% boosted by double-digit growth in markets including the Middle East and North Africa, Australia and Russia. Energy infrastructure pricing was up 1.8%.
“Our industrial outlook remains positive. Margins have stabilised and Energy, Oil & Gas and Transportation performed very well with double-digit profit increases. We are confident in our double-digit EPS growth expectations for 2012 and are raising our operating cash expectations to $17-19 billion based upon the restart of the GE Capital dividend,” said GE chairman and CEO Jeff Immelt.
“Our strategy to invest in growth markets is paying off, as we achieved orders expansion in growth markets of 14% and revenue growth of 17%. We ended the quarter with a record backlog,” he added.