General Electric Company (GE) reported fourth quarter 2009 earnings per share from continuing operations of 28 cents, exceeding the Zacks Consensus Estimate of 26 cents. Revenues were $41.4 billion for the quarter and $157 billion for the year.
Revenues by Segment
Fourth-quarter Infrastructure orders increased $3.7 billion from third quarter to $22.1 billion. Total company backlog of equipment and services increased slightly from the prior quarter to a record $175 billion.
Service orders remained strong, growing 14% for the quarter. The Healthcare business experienced solid order growth and enters 2010 with a higher backlog than in the prior year. Non-earning assets declined $0.6 billion in the quarter and consumer delinquencies were stable.
Every segment at GE Capital was profitable with the exception of Commercial Real Estate, which continues to operate in a difficult environment. The management completed 100% of its 2010 long-term funding plan for GE Capital, and the company raised about $4.4 billion in 2010 that will go towards its 2011 plan.
During the quarter, GE agreed to team with the Commercial Aircraft Corporation of China to power China’s newest commercial aircraft in development, the C919, and established a joint venture with China Aviation Industry Corporation to develop and market integrated avionics systems.
Other Wins for GE in the Quarter
In addition, the company won: a $1.4 billion commitment from Caithness Energy for what could be the world’s largest wind farm by output; a 15-year, $1 billion engine service agreement with Brazilian airline Azul Linhas Aéreas; a 100-locomotive order from South Africa’s state-owned rail freight logistics utility, Transnet Ltd.; a $1.3 billion contract to supply equipment and long-term services to help boost Kuwait’s electricity production.
Fourth-quarter earnings from continuing operations attributable to GE were $3.0 billion, down 22% from $3.9 billion in the fourth quarter of 2008. EPS from continuing operations was $0.28, down 22% from the fourth quarter of last year. Segment profit declined 16% compared with the fourth quarter of 2008, as 9% growth at Energy Infrastructure and 278% growth at Consumer & Industrial were more than offset by declines of 67% at Capital Finance, 30% at NBC Universal and 16% at Technology Infrastructure.
GE is a diversified infrastructure, finance and media company taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, medical imaging and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. Major competitors are United Technologies Corporation (UTX) and Siemens AG (SI).
We currently have a Neutral recommendation on GE.
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