(MENAFN- ProactiveInvestors) () the world’s largest supplier of heavy-duty gas turbines and jet engines posted higher-than-expected profit in the fourth quarter driven by growth in its industrial segment but was hurt by weak sales in its oil and gas unit.
Net income rose to $5.15 billion or $0.51 per share in the October-to-December quarter from $3.21 billion or $0.32 per share a year earlier the Fairfield Connecticut-based company said in a statement today.
On an adjusted basis the company earned $0.56 per share share a penny more than 14 analysts surveyed by Capital IQ expected on average.
Revenue increased 4 percent to $42 billion in the period but lagged behind the $42.16 billion expected by analysts according to Capital IQ.
The U.S. conglomerate continues a multiyear shift away from reliance on financial earnings and toward industrial growth. GE is selling assets that don’t fit its image as a global infrastructure company including media appliances and consumer finance and investing in ones that do—like oil and gas power generation and advanced manufacturing.
“The environment remains volatile but we continue to see infrastructure growth opportunities” the company’s chief executive officer Jeff Immelt said in a news release.
Overall industrial segment revenues increased 6 percent to $31.82 billion from a year earlier. Power and water revenues gained 22 percent while transportation revenues grew 8 percent.
GE Capital revenues meanwhile climbed 4 percent to $11.51 billion.
Revenue at the oil and gas division slumped 6 percent as operating profit rose 1 percent. Orders at the unit which sells oil and gas equipment and services fell 4 percent on an organic basis. The company had previously said earnings in the division could fall in 2015.
GE is in the process of closing a deal to buy most of Alstom's power equipment business. The Dow component's exposure to energy has also added pressure amid falling global oil prices.
In October GE's aviation unit acquired Milestone Aviation Group a Dublin-based helicopter leasing company.
GE fluctuated between gains and losses in New York pre-market. The stock fell 9.8 percent in 2014 compared with an 11 percent increase in the Standard & Poor’s 500 Index.
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