GE Profits Rise To $6.6 Billion

Jan. 19, 2007
Company will restate results from 2001.

General Electric said Jan. 19 its fourth-quarter profit rose to $6.6 billion, and that it would restate results from 2001 to comply with accounting rules. The net profit for the October-December quarter amounted to 64 cents a share, in line with Wall Street forecasts.

The profit more than doubled from $3.16 billion in the same period a year ago, and increased 12% from continuing operations. Revenues increased 1% to $44.6 billion with activities in jet engines, medical equipment, finance and the NBC Universal media-entertainment group.

For the full year 2006, GE posted a profit increase of 11% at $20.7 billion, on revenues of $163.4 billion, an increase of 10%.

GE also said it was amending its results from 2001 to 2005 to restate "accounting for interest rate swaps used to fix certain otherwise variable interest costs in a portion of its financial services commercial paper program." The change was made after consulting with the Securities and Exchange Commission on accounting rules in connection with a previously disclosed SEC investigation relating to derivatives accounting. The company said the change resulted in a cumulative earnings reduction of $343 million, with declines in 2001 and 2002 and increases in 2003 through 2005. GE said it would have a "slightly positive effect on earnings over the next 10-plus years."

"With strong performances at infrastructure, healthcare, plastics and the financial services businesses, GE delivered double-digit growth in earnings and revenues for the quarter and the year," GE chairman and chief executive Jeff Immelt said.

"NBC Universal's turnaround is advancing and Industrial had a good year in spite of continued commodity inflation and competitive challenges at plastics. We completed the disposition of advanced materials in the quarter at a favorable tax rate, which enabled us to accelerate our comprehensive restructuring efforts."

Copyright Agence France-Presse, 2007

Popular Sponsored Recommendations

How Digital Twin Technology is Empowering Manufacturers

Sept. 27, 2023
This FAQ delves into why this technology offers business value and considerations toward implementation.

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Legacy Phone Lines Are Draining Your Profits

Oct. 30, 2023
Copper wire phone line expenses that support emergency devices could be costing your company millions of dollars in wasteful overhead expenses. Rates have been skyrocketing while...

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!