Global demand lifts GE profit
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General Electric Co. reported that fourth-quarter income rose 4% to $6.7 billion, or 66 cents a share, compared with $6.44 billion, or 62 cents, in the year-earlier period. The rise reflects strong global demand for its power system products such as jet engines and turbines.
Earnings at GE’s NBC Universal entertainment division, showing no slowdown because of the Hollywood writers strike, jumped 10% to $923 million for the quarter ended Dec. 31. Revenue climbed 8% to $4.55 billion from $4.22 billion, thanks to the strong performance of its movies at the box office and higher ratings at cable channels USA, CNBC and Bravo.
“There’s a lot of discussion about the writers strike,” GE Chief Financial Officer Keith Sherin told analysts. “There was no noticeable impact in the fourth quarter. We do have fewer new shows, but we’ve also got a lot lower costs.”
Sherin also singled out the sequel “The Bourne Ultimatum,” which grossed $442 million in worldwide ticket sales.
The studio appears to have benefited from its new international operation, Universal Pictures International, which debuted last year. Inexpensive movies including “Hot Fuzz” and “Mr. Bean’s Holiday,” which performed poorly in the U.S., were major hits overseas.
“We’ll see what happens next in the negotiation with the writers, but that’s allowed us to basically introduce new reality shows and they’re all off to a good start,” Sherin said.
Regarding the effect of the strike on NBC Universal in the months ahead, GE Chief Executive Jeffrey Immelt said, “There’s minimal impact in the first quarter and there is an actors negotiation that will happen in the second half of the year. And the film business has been preparing for that. . . . We’re preparing for the worst and hopefully it will be better than that.”
Earnings from continuing operations at the Fairfield, Conn.-based conglomerate increased to $6.82 billion, or 68 cents a share, from $5.95 billion, or 58 cents, in the year-earlier quarter.
The results matched the estimate in a Bloomberg News survey of analysts.
Revenue for the full year rose 18% to $48.6 billion from $41.3 billion at GE, with more than half coming from outside the U.S.
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