General Electric reports EPS in-line, revs in-line; 2014 framework remains unchanged
Reports Q4 (Dec) earnings of $0.53 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.53; revenues rose 3.1% year/year to $40.38 bln vs the $40.21 bln consensus.
GE Capital continued to execute on its strategy of becoming a smaller, more focused financial services business. GE Capital earnings rose 38% including gains from the IPO of Swiss consumer business, and the BAY disposition. ENI (excluding cash and equivalents) was $380 billion at quarter-end.
During the quarter, GECC paid $2 billion in dividends to the parent. Cash generated from GE operating activities in 2013 totaled $17.4 billion excluding $3.2 billion of NBCUniversal deal-related taxes. Cash generated from Industrial operating activities, excluding the NBCUniversal deal-related taxes, totaled $11.5 billion.
- Industrial sales of $28.8 billion increased 6% YoY.
- GECC revenues of $11.1 billion decreased 5% YoY.
- 4Q U.S. orders +8%, growth market orders +13%, Europe orders +3%
- Infrastructure orders for the quarter were $30.7 billion, up 8%. GE's backlog of equipment and services at the end of the quarter was its highest ever at $244 billion, up $15 billion from the third quarter. Industrial segment revenues grew 6%, with organic growth of 5%. Growth market revenues were up 10% for the quarter, with double-digit growth in six of nine growth regions, and growth market orders were up 13%. Services revenue grew 6%, with gains in most segments.
GE Capital continued to execute on its strategy of becoming a smaller, more focused financial services business. GE Capital earnings rose 38% including gains from the IPO of Swiss consumer business, and the BAY disposition. ENI (excluding cash and equivalents) was $380 billion at quarter-end.
- Volume was up 5% for the quarter, with attractive returns. General Electric Capital Corporation's (GECC) estimated Tier 1 common ratio (Basel 1) rose 1.2% to 11.4%, and net interest margin was strong at 5%.
During the quarter, GECC paid $2 billion in dividends to the parent. Cash generated from GE operating activities in 2013 totaled $17.4 billion excluding $3.2 billion of NBCUniversal deal-related taxes. Cash generated from Industrial operating activities, excluding the NBCUniversal deal-related taxes, totaled $11.5 billion.