GE profit rises 36 percent, but sales slow

By Alwyn Scott

(Reuters) - General Electric Co reported a 36 percent jump in fourth-quarter earnings on Friday, helped by strength in its power and renewable energy businesses, and it affirmed its growth and profit forecasts for 2017.

The Boston-based maker of power plants, aircraft engines, locomotives and medical equipment said revenue fell 2.4 percent to $33.1 billion, slightly below Wall Street expectations of $33.6 billion.

Net income from continuing operations attributable to GE shareholders rose to $3.48 billion, or 39 cents a share, from $2.57 billion, or 26 cents a share, a year earlier.

Excluding special items, earnings fell 2 percent to 46 cents a share, matching the analysts' average estimate compiled by Thomson Reuters I/B/E/S.

 

GE said in December it expected revenue growth of 3 percent to 5 percent this year, excluding acquisitions, figures it affirmed on Friday.

Shares of GE were down 1.4 percent at $30.76 in premarket trading.

In the company's oil and gas operation, sales fell 22 percent to $3.4 billion, and profit dropped 43 percent to $411 million, due to weakness in that sector.

Sales in the power plant business increased 20 percent to $8.5 billion, or 6 percent excluding the benefits of its Alstom acquisition. The division booked $11 billion in orders during the quarter, up 16 percent from a year earlier, and profit rose 27 percent.

(Additional reporting by Ankit Ajmera in Bengaluru; Edited by Lisa Von Ahn)