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GE swings to profit from loss

Friday, July 22, 2016 - 01:00

Strong sales in power and aviation equipment drove quarterly revenue sharply higher at General Electric. The company sees strong growth in the second half, as Fred Katayama reports.

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General Electric swung to a quarterly profit from a loss. Helping pump revenue up 15 percent: rising sales of gas turbines, aircraft engines, and healthcare equipment. That helped offset weak demand in transportation equipment and oil and gas. As it shrinks its finance business to shift to industrial businesses, the company has returned $11 billion in dividends this year. GE is often seen as a bellwether for the economy. CEO Jeff Immelt was bullish, saying he expects to see "strong organic growth" in the second half of the year. Orders fell 2 percent. William Blair analyst Nicholas Heymann notes last year's quarter included strong orders from the air show in June, which occurred this year in July. So he said, "We're not overly alarmed by that." The company's earnings easily beat Wall Street's targets. But GE shares, up 22 percent over the last 12 months, fell in early trading.

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GE swings to profit from loss

Friday, July 22, 2016 - 01:00