General Electric boosted the low end of its 2015 industrial profit forecast as the company accelerated efforts to shrink its GE Capital finance unit.
The shares climbed in early trading.
Full-year earnings in the manufacturing divisions will be $1.13 to $1.20 a share, up from a previous range starting at $1.10, GE said Friday in a statement. Adjusted profit from continuing operations was $2.8 billion (€2.57 billion).
The company posted operating earnings of 28 cents a share, while industrial earnings including GE Capital verticals were 31 cents a share.
Analysts projected profit of 28 cents, based on estimates compiled by Bloomberg.
The results capped a quarter in which chief executive officer Jeffrey Immelt tied GE's fortunes more firmly than ever to the industrial divisions making products such as jet engines and locomotives.
His April 10th plan to shrink GE Capital with $200 billion in asset sales is so sweeping that it largely overshadowed the performance of GE’s manufacturing businesses.
GE rose 1.7 per cent to $27.50 in New York this morning before regular trading. The shares’ 7 per cent advance this year through Thursday topped the 3.2 per cent gain for the Standard and Poor’s 500 Index.
Sales of $32.8 billion beat analysts’ average estimate of $28.8 billion. Industrial revenue was $26.1 billion.
The company said last week it would take a $4.3 billion after-tax charge in the quarter as the pace of asset disposals in the credit arm quickens.
Bloomberg
