General Electric Co topped Wall Street's profit and revenue forecasts for the first quarter, helped by strong demand for energy equipment and railroad locomotives. The largest US conglomerate said on Friday industrial orders had risen 20 percent in the quarter and that selling prices had improved in most of its businesses. This should help Chief Executive Officer Jeff Immelt achieve his goal of boosting profit margins this year.
"Global markets are improving, but volatility remains," Immelt told investors on a conference call. GE shares rose 1.9 percent to $19.51 on the New York Stock Exchange. GE's transportation unit, which makes locomotives, posted 41 percent sales growth, while revenue at the GE Capital arm it is trimming declined 12 percent. As of Thursday's close, GE shares were up 6.6 percent for the year, trailing the 10 percent rise of the Standard & Poor's 500 stock index.
Fairfield, Connecticut-based GE reported net income of $3.03 billion, or 29 cents per share, down from $3.43 billion, or 31 cents per share, a year earlier. The results include a $200 million charge for exiting its Irish mortgage business, as well as gains from the sale of NBC Universal and a finance unit. Factoring out one-time items, earnings came to 34 cents per share, topping the analysts' average forecast of 33 cents, according to Thomson Reuters I/B/E/S.
Profit margins dipped in the quarter - to 13.8 percent of sales from 14.3 percent a year earlier, but Immelt said higher selling prices would help the company reach its goal of boosting overall 2012 profit margins to a target of 15.4 percent of sales. Revenue at the world's largest maker of jet engines and electric turbines fell 8.2 percent to $35.2 billion, but was above the $34.7 billion that Wall Street had anticipated.
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