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GE 2Q meets estimates
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July 12, 2001: 8:59 a.m. ET
CEO Jack Welch plans to retire in September; 2Q revenue down 3%
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NEW YORK (CNNfn) - General Electric Co. posted improved second-quarter profit Thursday that met Wall Street expectations for the period and said CEO Jack Welch plans to retire in September.
The world's largest company in terms of market value earned $3.89 billion, or 39 cents a share, in the quarter, up from $3.38 billion, or 34 cents a share, a year earlier. Analysts surveyed by earnings tracker First Call expected earnings of 39 cents.
Additionally, Chief Executive Officer Jack Welch said he will retire at a Sept. 7 board meeting. Welch had delayed his retirement to shepherd the company through its planned merger with Honeywell International Inc. (HON: Research, Estimates). After that merger died last week, it was only a matter of time before Welch stepped down.
During his 20-year tenure as CEO, Welch increased GE's market capitalization to about $490 billion from about $13 billion. GE had $130 billion in revenue in 2000 and employs about 313,000 people.
The Fairfield, Conn.-based manufacturing company also said it expected to earn $1.45 a share for the full year 2001, just short of Wall Street expectations of earnings of $1.47.
Second-quarter revenue fell to $32 billion, down 3 percent from $32.9 billion a year ago. GE said the economic slowdown in the United States had hurt its short-cycle businesses, such as financial services and broadcasting, while its long-cycle, industrial businesses kept profit afloat.
GE (GE: down $1.15 to $44.61, Research, Estimates) shares closed Wednesday down $1.15 at $44.61. 
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