GE boosts Q2 sales, profits
US industrial giant GE reported increased profits for the second quarter of 2014 as forged ahead to complete its mega-acquisition of the energy assets of France’s Alstom.
GE net profit was $3.5bn in Q2, up from $3.1bn during the same period in 2013. Revenues increased 3% to $36.2bn.
The group’s industrial segment delivered a 9% profits increase in the second quarter to $4.2bn, with margins also improving.
Strengthening GE’s industrial operation underpinned its hard-won acquisition of the Alstom assets, which will see the US group take total control of the French company’s onshore wind unit and join it in a 50/50 venture offshore.
GE said the $17bn Alstom deal is now seeking the OK from the French group’s shareholders, necessary regulatory approvals and starting consultations with works councils. It is targeted to close next year.
That will help GE reach its goal of 75% of revenues from industrial operations by 2016.
GE CEO Jeff Immelt said: “The environment continues to be generally positive.
“With the Retail Finance split-off and Alstom acquisition, we are boldly repositioning the company for the future.”
Immelt and his team are due to give more details of GE's second quarter during a conference call with analysts later today.