GEs focus on core manufacturing operations begins to pay off profit rises

NEW YORK, N.Y. – General Electric Co.’s net income rose 49 per cent in the third quarter to $3.49 billion as its recovery from the 2008 financial crisis continues.GE earned 33 cents per share in the quarter, up from 22 cents per share a year earlier. On an adjusted basis, GE earned 36 cents per share, matching the expectations of analysts surveyed by FactSet.Revenue rose $1 billion, or 3 per cent, to $36.35 billion. But analysts were looking for revenue of $36.95 billion and GE shares fell nearly 2 per cent in premarket trading.During last year’s third quarter the company repaid $3 billion to Warren Buffett’s Berskshire Hathaway for its investment in GE during the depths of the financial crisis. Compared with last year’s adjusted results, GE’s earnings per share rose 13 per cent.GE’s size and global scope gives it a unique perspective on economic growth around the world. On Friday, CEO Jeff Immelt said the U.S. economic recovery is slow, and being held back by political and fiscal uncertainty. The European economy continues to struggle. Immelt described growth in Asia and other resource-rich regions as “slower but stable.”He said China, Russia, Latin America and the Middle East will have “decent” opportunities for the rest of this year and next year.“Europe is going to be a grind,” he said.Immelt said globally the picture next year will look much like it did this year, with pockets of weakness and strength. The one major variable, he said, was the so-called fiscal cliff looming in the U.S. — the automatic tax hikes and spending cuts that will kick in at the beginning of next year unless Congress can agree on a new budget plan. He does expect the standoff to get resolved “one way or another.”GE, based in Fairfield, Conn., was shaken during the financial crisis when investors began to worry that its enormous banking arm, GE Capital, would fail. It is now paring down GE Capital and other non-industrial businesses such as commercial real estate.GE said Friday it accelerated its efforts to reduce assets in GE Capital to $425 billion by the end of this year, a move applauded by investors. That lowered the company’s revenue forecast, however. Revenue is now expected to rise 3 per cent for the year instead of 5 per cent.GE is increasingly focused on its industrial operations such as manufacturing jet engines, refrigerators and providing equipment and services to energy companies.Revenue from the industrial divisions rose 8 per cent in the third quarter and is up 10 per cent so far this year.Orders for new equipment and services were down 5 per cent compared with last year, mainly because wind turbine orders have fallen dramatically because a key U.S. federal subsidy for wind power is scheduled to expire at year end. Excluding the dip in wind turbine orders, the company’s industrial orders were up 4 per cent.The company’s energy infrastructure and transportation divisions posted the strongest growth. Energy infrastructure profits rose 13 per cent and transportation profits rose 35 per cent.The relatively weak global economy is forcing GE to cut back, though, to protect profits. The company said it is on track to cut $2.8 billion this year as part of its “simplification” efforts.This is helping profit margins. GE’s operating profit margin grew to 14.4 per cent from 13.7 per cent in the third quarter.Follow Jonathan Fahey on http://twitter.com/JonathanFahey . by News Staff Posted Nov 2, 2012 6:28 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email GE’s focus on core manufacturing operations begins to pay off, profit rises 49 pct. read more

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49 dead as proRussian rebels shoot down Ukrainian troop plane

first_imgPRO-RUSSIAN SEPARATISTS shot down a Ukrainian military transport plane near the eastern city of Lugansk, killing 49 troops on board, the defence ministry said today as the United States accused Russia of sending tanks and rocket launchers to the pro-Moscow rebels.“The terrorists cynically and treacherously fired with a large-calibre machinegun hitting an Ilyushin-76 of the Ukrainian air force which was carrying troops on rotation and was about to land at Lugansk airport,” the ministry said in a statement.The four-engine jet was also carrying “equipment”.The ministry offered its condolences to the families of the “killed soldiers”, but did not say how many died.Lugansk, which is close to the Russian border, is the main city of one of two eastern regions hit by pro-Moscow separatist violence and which has declared its independence from Kiev.An “anti-terrorist” clampdown by Ukrainian armed forces has left at least 270 people dead over the past two months.The attack came less than a week after the rebels fighting Ukraine’s Western-backed government launched attacks on Lugansk International Airport.The assaults, which took place Saturday evening and Sunday morning in the immediate wake of the inauguration of Ukraine’s new President Petro Poroshenko, did not result in any injuries among the defenders.But one of the Ukrainian paratroopers guarding the airport told AFP at the time it was clear the rebels were trying to destroy the building which controls the power supply to the airport.The United States on yesterday accused Russia of sending tanks and rocket launchers to pro-Moscow rebels in Ukraine as Kiev’s resurgent forces hoisted the national flag over a strategic rebel-held port amid fears of possible Russian gas cuts.Moscow said Ukrainian tanks had crossed the border into its territory before being intercepted, a day after Ukraine alleged that three tanks had crossed from Russia into its territory, underscoring the growing tensions between Kiev and Moscow.Poroshenko told his Russian counterpart Vladimir Putin that the tanks’ crossing into the former Soviet republic’s separatist east was “unacceptable”.Washington backed Kiev’s claims, saying separatists in eastern Ukraine had also obtained multiple rocket launchers from Russia among other heavy weapons and military equipment. Government troops attacked pro-Russian separatists in the southern port of Mariupol. Source: AP/Press Association ImagesThe United States has “information that Russia has accumulated tanks of a type no longer used by Russian forces at a deployment site in southwest Russia, and some of these tanks recently departed,” State Department deputy spokeswoman Marie Harf said Friday.“We are confident that these tanks came from Russia,” she added, noting that no Ukrainian tank units have been operating in the area.Earlier, she told reporters that a convoy of three T-64 tanks, several BM-21 or Grad multiple rocket launchers and other military vehicles had “crossed from Russia into Ukraine”.Internet videos had shown the same types of tanks moving through multiple cities in eastern Ukraine, including Snizhne, Torez and Makiyivka, Harf said.The same types of rocket launcher were seen travelling through Lugansk.NATO chief Anders Fogh Rasmussen warned that reports of pro-Russian groups acquiring heavy weapons from Russia, including tanks, would mark a “serious escalation” of the crisis if confirmed.Poroshenko celebrated the “heroism” of soldiers hoisting the national flag over the strategic rebel-held port of Mariupol.He proclaimed the industrial Sea of Azov city the new temporary capital of Donetsk — an eastern rustbelt region overrun by pro-Russian gunmen for the past two months.Mariupol has wavered between rebel and Kiev control for weeks and was also the scene of pitched battles on 9 May that killed more than a dozen people.Heavy rebel lossesThe bustling port of half a million people provides access to the main highway linking other regions with Russia and is the main export channel for coal and industrial products fundamental to Ukraine’s economic growth.Ukrainian Interior Minister Arsen Avakov said that federal forces led by the part-volunteer National Guard had inflicted “heavy losses” on the rebels while seeing only four soldiers suffer light wounds.But the prosecutor’s office also confirmed that three soldiers died late Thursday when they were ambushed by the militia in the Donetsk region town of Stepanivka.His deputy told reporters that 30 pro-Russian gunmen had been captured in a coordinated push involving special forces that saw rebels driven from the city’s seat of power they had reoccupied about a month ago.The region’s main administration building in Donetsk remains under rebel control.Monday morning gas cut Poroshenko’s troubles have been compounded by the threat of Ukraine being cut off from economically-vital Russian gas shipments as early as Monday morning because of a bitter price dispute.Prime Minister Arseniy Yatsenyuk told regional administrations and the heads of the state energy company to prepare for the consequences of a possible gas cut by implementing a plan for reduced energy use.Ukraine receives half its gas supplies from Russia and transports 15 percent of the fuel consumed in Europe.© – AFP 2014Read: Ukraine’s new ‘Chocolate King’ vows not to give up on Crimea >Read: Ceasefire call sparks hope for peace in south-eastern Ukraine >last_img read more

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