said on Friday that its second-quarter earnings were in line with expectations and higher than any quarter in the company's history, thanks to strong performances from its long-cycle businesses. The company also said it was comfortable with analysts' full-year estimates.
GE earned $4.426 billion, or 44 cents a share, in the quarter, up from $3.897 billion, or 39 cents a share, in the year-ago quarter. Analysts polled by Thomson Financial/First Call were looking for 44 cents.
The results include a $358 million favorable settlement with the IRS and a $70 million after-tax benefit of terminations of gas turbine orders, as well as a $350 million in adjustments for estimates of prior-year losses and a $110 million after-tax writedown to recognize impairment of
Revenue for the quarter was up 4% to $33.2 billion from $32 billion last year, missing the consensus estimate of $35.93 billion. GE said its industrial revenue was up 10% for the quarter, and its power systems and medical systems saw double-digit revenue increases. GE Capital posted a 4% decline in revenue because of WorldCom and Employers Reinsurance Corporation, the company said.
The company also added that its short-cycle businesses, particularly NBC, Plastics, and Appliances, performed well in the quarter, with NBC and the Appliances division seeing double-digit earnings growth. GE said NBC gained 52% of the growth in the television advertising industry dollars because of its strong ratings performance, while GE Appliances posted revenue gains of 14%.
Looking ahead, GE said it was comfortable with analysts' full-year estimates, currently at $1.65 a share for the year on revenue of $13.56 billion. "In a tough environment, GE's businesses continue to win in their markets by bringing great technology and services to their customers. We had a record second quarter, our third quarter looks promising, and we remain comfortable with the targets we've communicated for the full year," the company said in a press release.
Shares of GE were recently climbing about 2.4% to $28 in Instinet premarket trading after closing at $27.35 Thursday.