GE Third-Quarter Profits At New High
FAIRFIELD, Conn. (Reuters) - General Electric Co.'s third-quarter profits surged 13 percent to a record $2.28 billion on record revenues due to its global financial activities and other factors, the company said Thursday.
The results translated to earnings of 69 cents a share, matching analysts' expectations.
GE Capital Services' earnings exceeded the $1 billion mark during a quarter for the first time with profits of $1.08 billion, up 15 percent from 1997's third quarter, GE said.
These records were led by strong double-digit increases in its Consumer Services, Specialized Financing, Specialty Insurance and Mid-Market Financing activities.
Revenues, including acquisitions, rose to a record $24.1 billion, 10 percent higher than last year's third quarter, reflecting continued growth from globalization and product services, GE said.
''This quarter's double-digit earnings increase represents a continuation of GE's strong results for the first three quarters of 1998, driven by a combination of global growth, expansion of our product services activities (and) rapid introduction of new products,'' Chairman John Welch said.
Third-quarter earnings per share increased 15 percent to 69 cents from last year's 60 cents, GE said.
Both earnings per share and third-quarter profits were records for the period, it said. Earnings per share -- which matched the First Call consensus estimate for the quarter -- grew faster than earnings, reflecting the impact of shares repurchased under a five-year, $17 billion share buyback program started in December 1994, the company said.
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