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GE earnings up
Conglomerate hits earnings target on better than forecast revenue; all units see strong profit gain.
October 14, 2005: 7:53 AM EDT

NEW YORK (CNN/Money) - General Electric Co. posted a solid gain in third-quarter earnings Friday that met Wall Street forecasts.

The conglomerate earned $4.7 billion, or 44 cents a share, up from $4.1 billion, or 38 cents a share, a year earlier. Each of the company's six business units posted better than 10 percent earnings gains.

Analysts surveyed by earnings tracker First Call had forecast EPS of 44 cents, and the company had signaled last week it would be able to hit that target.

Shares of Dow component GE (Research) gained 18 cents to $34.20 in pre-market trading on Inet following the report.

The company said it saw $377 million of hurricane-related reinsurance losses in the quarter.

"Despite a volatile environment, our fundamentals remain very strong," said a statement from Chairman and CEO Jeff Immelt.

Revenue at GE rose to $41.9 billion from $38.3 billion a year earlier. That topped First Call's forecast called for revenue of $41.1 billion.

Most of the units posted solid revenue gains as well, except for NBC Universal where revenue fell 26 percent when compared to the year-earlier period that included the 2004 Olympics broadcasts.

"Orders were up 11 percent, services sales increased 9 percent, revenue from accelerating growth platforms, such as Healthcare IT and Oil & Gas, grew 24 percent, and we generated strong double-digit global revenue growth from markets such as China and Europe," said Immelt's statement.

The company announced Oct. 6 it was increasing its share repurchase plans by $1 billion to more than $4 billion. Its earnings statement Friday added that "We will continue to explore additional ways to return cash to investors."

For a look at more earnings news, click here.  Top of page

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