GE U.S. operations lost $408 million
GE international gained a $10.8 billion profit
“Our business model is performing,” Immelt said. “We are expanding Industrial margins and realizing benefits from over two years of restructuring, while increasing investment in R&D to drive profitable organic growth.” Jeff Immelt
GE is making fantastic strides in making money, just not in the US. GE actually has a negative tax rate in the US. -10.5% according to CNN Money.
GE said there were positive indications in commercial aviation, freight rail and advertising.
“We saw encouraging economic signs,” said chief executive Jeffrey Immelt.
GE Capital profits fell 41 percent much of that was due to downsizing and a substantially lower tax credit. The loss in commercial real estate more than doubled to $403 million. Still, GE said losses were moderating at GE Capital. CEO Jeff Immelt predicts that GE Capital has “turned the corner.” Source: Stephen Manning, AP
GE posted a $607 million profit even with the lower tax credits — $357 million compared to $1.15 billion a year ago. GE also saw stabilization as losses and delinquencies declined in the first quarter. Industrial cash flow from operations on track at $2.6 billion; $70 billion consolidated cash and equivalents.
S&P REITERATES BUY OPINION ON SHARES OF GENERAL ELECTRIC
(Standard & Poor’s)
Q1 EPS of $0.21, vs. $0.26, is $0.01 above our estimate but $0.05 above consensus. Revenue was in line with our forecast, but slightly below consensus. We note $600M operating profit in finance segment, significantly ahead of our estimate, and see global credit markets improving, except commercial real estate. We also see industrial order trends improving, with equipment orders down 10% vs. -14% Q4 and -32% in Q3. On signs of continued economic and credit recoveries we raise our ’10 EPS estimate by $0.03 to $1.05 and ’11’s by $0.10 to $1.20. We up our target price by $4 to $23.
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