Profits from industrial holding company General Electric (NYSE:GE) were better than expected, driven by a strong performance from its core industrials business.
The company’s third quarter net profit of US$2.51bn was down from US$3.54bn the year before.
Earnings per share (EPS) fell to 25 cents from 35 cents in the same period of 2014, but with one-off charges excluded, the EPS figure was 29 cents, versus market forecasts of 25 cents.
Revenue eased 1% to US$31.68bn from US$32.11bn last year, comfortably ahead of market expectations of sales of US$28.57bn.
The company has been selling off its lucrative financing arm to focus on its digital industrial business.
Industrial operating profit climbed 5% to US$4.5bn despite the division’s revenue easing 1% year-on-year to US$26.2bn, though on a like-for-like (LFL) basis, revenues were up 4% on last year.
The industrial division’s orders were down 23% on a LFL basis to US$23.2bn.
“In a volatile environment, GE performed well this quarter, with industrial profit growth, organic revenue growth, and margins up 100 basis points. Our GE Capital exit plan is ahead of plan and we expect GE Capital dividends to the parent of around US$3 billion for 2015,” said Jeff Immelt, who is not only chief executive of GE but also the chairman.
“This week we announced the sale of US$30 billion of commercial lending businesses, bringing our total signed deals to date to US$126 billion. We also expect to launch the Synchrony share exchange next week, which will significantly reduce the amount of GE stock outstanding. Through the exchange and dividends, we are on track to return around US$30 billion to share owners in 2015,” he added.