General Electric (GE) (NYSE:GE) saw its stock slip in morning trading on Friday, after announcing that its fourth quarter profits were off 18 percent from a year ago.
Shares of the diversified technology and financial services company were down over 1.5 percent to $18.86, as of 10:08 am EDT.
For the last three months of the year, GE posted net earnings of $3.73 billion, or $0.35 per share, down 18 percent from $4.54 billion, or $0.42 per share, a year ago.
Earnings from continuing operations rose three percent to $0.37 per share, the company said, and adjusted for pension costs and other items, earnings rose 11 percent to $0.39 per share.
Total revenues fell eight percent during the quarter, to $37.97 billion. Excluding the impact of the company's sale of its 51 percent stake in NBC Universal last year to Comcast, revenue rose 3.6 percent from a year earlier, GE said.
According to Bloomberg Businessweek, analysts had expected earnings of 38-cents per share, on $40.1 billion in sales.
"GE’s portfolio demonstrated strength and resilience, delivering earnings growth for the seventh consecutive quarter while also generating substantial operating cash flow to support investment in our business and dividend growth," said CEO Jeff Immelt.
"We are confident in our 2012 framework to realize double-digit earnings growth in our Industrial and Capital segments, increase margins and provide dividend growth to our shareholders in line with earnings."
Revenues under the company's big energy infrastructure unit increased 19 percent to $12.99 billion, as orders for the quarter hiked 15 percent to $28.6 billion, including a 23 percent rise in equipment and a seven percent hike in services.
GE said it signed a near $300 million contract with the Saudi Electricity Company to supply 13 gas turbines and associated services, related to the expansion of six power plants.
GE also noted that industrial revenue from emerging markets rose 25 percent, led by sales growth in Brazil, Russia, China, India, and the Southeast Asia region, offsetting weak results and slower growth in Europe.
Aviation saw a two percent rise in revenues to $4.92 billion. In orders, GE said the Emirates ordered 50 Boeing 777-300ER aircrafts, powered by GE Aviation's GE90 engines, signing a 12-year service agreement.
These orders, among others, led GE to end the year with a $200 billion backlog - the largest in its history.
Revenues under the company's healthcare banner increased one percent to $5.16 billion, while its transportation business posted a 43 percent rise in sales to $1.46 billion.
Meanwhile, home and business solutions sales fell four percent to $2.23 billion, while GE Capital revenues declined nine percent to $10.75 billion.
Late last year, GE Capital announced that GE Capital Financial, a wholly-owned subsidiary, would acquire MetLife's U.S. retail deposit business that consists of about $7.5 billion in U.S. deposits.
Immelt continued: "GE Capital is poised to grow double-digit in 2012, while continuing to shrink its balance sheet and strengthen its capital and liquidity positions. GE Capital volume grew to $49 billion, up 13% from the third quarter and margins remained healthy at 5.4%."
For the full year 2011, the company posted a 22 percent hike in overall net income, to $14.15 billion, or $1.23 per share, though revenues slipped two percent to $147.3 billion. Excluding the impact of GE's sale of its stake in NBC Universal, revenues were up seven percent to $147.3 billion.
GE's research and development expenses rose 16 percent for the full year 2011, which will help the company to introduce over 800 new products in 2012, it said.
"We expect continued volatility in 2012 and have prepared for it by investing in new products and technology, expanding our growth market footprint and taking important steps to strengthen risk management," Immelt concluded.