GE [NYSE: GE] announced today strong second-quarter 2011 operating earnings from continuing operations of $3.7 billion, up 18%, or $0.34 per share, up 17%, from the second quarter of 2010. Revenues were $35.6 billion for the quarter, down 4% from a year ago, primarily driven by the absence of NBCU revenues after the sale of GE’s majority position to Comcast. Excluding this impact, revenues were up 7%.
“With our fifth-consecutive quarter of double-digit earnings growth, we continue to execute in a volatile environment,” GE Chairman and CEO Jeff Immelt said. “We posted solid overall operating earnings growth of 18%, with strong contributions from GE Capital, Healthcare, Transportation, Aviation, and Oil & Gas. GE’s backlog grew to a record high of $189 billion. Total infrastructure orders were up 24%, reflecting robust strength in equipment orders, up 33%, and service orders up 16%.”
International revenues from Industrial (ex NBCU) were $13.4 billion, up 23% representing 59% of total Industrial revenues. GE revenue for the Industrial segments accelerated in growth regions, including double-digit increases in India, China, Southeast Asia, Africa, Russia, Australia, Canada, and Latin America.
“GE Capital continued to deliver strong performance through the second quarter, earning $1.7 billion after tax,” Immelt said. “GE Capital’s portfolio transformation is ahead of schedule. Consumer and Commercial Lending and Leasing (CLL) led with earnings growth of 57% and more than 100%, respectively. We continue to see strong demand for credit with CLL new volume originations at $10.8 billion for the quarter, up 33% from prior year.”As previously communicated, Energy earnings and margins were down primarily as a result of pressure in the renewable sector,” Immelt said. “In addition, margins were impacted by the integration of Energy acquisitions. Indicators are pointing to a stronger second half in 2011 for Energy when we expect approximately 17% unit volume growth versus 2010. Integration of strategic Energy acquisitions is ahead of plan, further positioning Energy Infrastructure for growth in the second half of this year. Overall, Industrial earnings should improve in the second half of 2011 and the cycle is expected to accelerate in 2012.” In the second quarter, the Company increased R&D investment 40% above a year ago to ensure GE continues to lead in technology innovations, products and services that drive strong organic revenue growth and future margin expansion. The investment is showing results. For example, GE Aviation and its joint ventures announced record wins of $27 billion at the Paris Air Show in June. The LEAP-X engine (a CFM International engine) has taken the lead in narrow-body orders on the new Airbus A320neo and is positioned as the sole source for Boeing’s 737 re-engine program. In Energy, GE launched the FlexEfficiency 50 Combined Cycle Power Plant, which delivers an unprecedented combination of flexibility and fuel efficiency, announced the world’s most efficient wind turbine, and achieved the highest reported efficiency for thin-film solar panels.
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