Sales and profits both slid for GE Healthcare (NYSE:GE) during the 3rd quarter, as parent company General Electric saw its overall numbers slide amid its exit from the financial services business, but the industrial conglomerate still managed to top earnings expectations.
GE Healthcare posted profits of $652 million on sales of $4.26 billion for the 3 months ended Sept. 30, for declines of -10.3% and -5.1%, respectively, compared with Q3 2014.
GE’s overall profits were $2.51 billion, or 25¢ per share, on sales of $31.68 billion, down -29.1% and -1.3%, respectively. But adjusted to exclude 1-time items, earnings per share were 29¢, 3¢ ahead of the consensus on Wall Street.
“In a volatile environment, GE performed well this quarter, with industrial profit growth, organic revenue growth, and margins up 100 basis points. Our GE Capital exit plan is ahead of plan and we expect GE Capital dividends to the parent of ~$3 billion for 2015. This week we announced the sale of $30 billion of commercial lending businesses, bringing our total signed deals to date to $126 billion. We also expect to launch the Synchrony share exchange next week, which will significantly reduce the amount of GE stock outstanding. Through the exchange and dividends, we are on track to return ~$30 billion to shareowners in 2015,” chairman & CEO Jeff Immelt said in prepared remarks.
“GE is executing and is on track to deliver on its 2015 goals. Our portfolio transformation is happening at an unprecedented pace. We have a focused infrastructure business with leading capabilities in our markets. We are positioned to grow faster than our competitors, with a strong dividend. We are growing operating and gross profit margins, executing our cost-out initiatives, and making corporate smaller. We have a $199 billion backlog of services that positions the company well for any cycle. We are transforming GE into the world’s premier digital industrial company, in a unique position to drive outcomes for customers and grow margins,” Immelt said.
Material from Reuters was used in this report.