American conglomerate GE today reported nearly 16 per cent decline in net earnings at $ 3.1 billion in the 2012 June quarter and also unveiled major restructuring of its lucrative energy business.
The entity had net earnings of $ 3.68 billion in the year-ago period.
In a statement, GE — which has significant presence in India — said the net earnings also mirror the effects of discontinued operations.
“Discontinued operations included $ 0.05 per share of charges primarily related to WMC and GE Money Japan reserve adjustments,” it noted.
Revenues in the latest June quarter went up over two per cent to $ 36.5 billion. In the same period a year ago, the same stood at $ 35.6 billion. “Revenues were negatively impacted by $ 0.9 billion due to FX and further shrinkage of the GE Capital business,” the statement said.
GE Capital, the financial services arm of the conglomerate, posted over 31 per cent rise in the June quarter profit at $ 2.12 billion.
Meanwhile, in a significant move aimed at saving costs, GE would separate its energy business into three separate units.
They would be GE Power and Water, GE Oil and Gas and GE Energy Management.
GE Energy business saw an earnings growth of 13 per cent in the three months ended June 2012.
“Our Industrial outlook remains positive. Margins have stabilised and Energy, Oil & Gas, and Transportation performed very well with double-digit profit increases.
“We are confident in our double-digit EPS growth expectations for 2012 and are raising our operating cash expectations to $ 17-19 billion based upon the restart of the GE Capital dividend,” GE Chairman and CEO Mr Jeff Immelt said.