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News > Companies
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GE hits 3Q mark
graphic October 11, 2001: 1:08 p.m. ET

Conglomerate posts narrow profit gain, sees '01 meeting forecasts.
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  • NBC in talks to acquire Telemundo - Oct. 8, 2001
  • GE reaffirms '01, '02 earnings outlook despite attacks - Sept. 21, 2001
  • GE after Jack - Sept. 10, 2001
  • GE's Welch retires after 20 years as CEO - Sept. 7, 2001
  • GE 2Q meets Street; Welch to retire in September - July 12, 2001
  • EU rejects GE-Honeywell merger - July 3, 2001
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  • GE
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    NEW YORK (CNNmoney) - General Electric Co. posted a slight increase in third-quarter earnings Thursday, meeting Wall Street expectations, and said it is confident it will hit full-year earnings forecasts.

    The conglomerate earned $3.3 billion, or 33 cents a share, in line with the consensus estimate of analysts surveyed by research firm First Call and up from $3.2 billion, or 32 cents a share, a year earlier.

    "All in all, it was a very robust quarter, ex the events of Sept. 11," ABN Amro analyst Todd Hinrichs said.

    The company said that without a $400 million, or 4 cents a share, insurance loss due primarily to the Sept. 11 terrorist attack, it would have had a 16 percent gain in earnings per share.

    "It's just what we were expecting, essentially," Hinrichs said. "The company reported 33 cents and, had the events of Sept. 11 not occurred, the company would have been in the 37-cent range."

    GE (GE: up $1.35 to $39.26, Research, Estimates) said it should be able to earn $1.41 a share for the year, which is in line with First Call's forecast.

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    Revenue rose 7 percent to $29.5 billion. NBC, its television network which benefited from the 2000 Olympics, the U.S. election season and a generally stronger advertising market in the year-earlier period, saw revenue plunge 45 percent to $1.1 billion.

    Sales also fell 19 percent to $13.3 billion at GE Capital Services, its largest unit, due to a previously announced exit from some businesses as well as a re-insurance premium related to the terrorist attack. But revenue from industrial products such as aircraft engines, power systems and appliances had a combined 10 percent gain.

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    A 10 percent profit gain in aircraft engines to $674 million and nearly a doubling in power system profits to $1.3 billion from $670 million a year ago made up for the drop in the capital services unit.

    "It's just amazing how important GE Power Systems has become to this company," Edward Jones analyst William Fiala said. "It really has allowed GE to maintain its earning growth." graphic


    -- from staff and wire reports

      RELATED STORIES

    NBC in talks to acquire Telemundo - Oct. 8, 2001

    GE reaffirms '01, '02 earnings outlook despite attacks - Sept. 21, 2001

    GE after Jack - Sept. 10, 2001

    GE's Welch retires after 20 years as CEO - Sept. 7, 2001

    GE 2Q meets Street; Welch to retire in September - July 12, 2001

    EU rejects GE-Honeywell merger - July 3, 2001

    GE nudges profit target higher - May 9, 2001

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    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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