A slowing global economy and major corporate adjustments pushed General Electric into a loss in 2015, but the US industrial giant reported firm gains for the fourth quarter on Friday.
GE said sales fell 1.3 percent in the quarter to $ 30.5 billion and costs surged but tax and other benefits helped it turn in a 22.3 percent gain in net earnings at $ 6.3 billion.
Sales revenues were also down in the year, by 0.9 percent to $ 105.8 billion, while rising expenses, the costs of restructuring and taking over part of France’s power equipment company Alstom (Paris: FR0010220475 – news) gave GE a $ 6.1 billion loss, after $ 15.2 billion in profits in 2014.
Revenues and profits in the fourth quarter were strong in its aviation division, where it provides aircraft engines and other equipment. Transportation — mainly railway equipment — was also solid.
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But its power generation, renewable energy and oil and gas divisions all sagged.
“GE executed well in a slow-growth environment,” said chief executive Jeffrey Immelt in a statement.
“We recognize that the first few weeks of 2016 have been especially volatile. However, our orders in the fourth quarter grew one percent organically and our backlog grew to $ 315 billion with Alstom. We believe in the strength of our business model and that there is enough growth out there to deliver in 2016.”
The company reiterated its earnings targets for 2016 despite the turmoil and slowing in major emerging economies that have been key markets. It (Other OTC: ITGL – news) forecast 2-4 percent growth in its core businesses and expansion of margins.
“In a time of uncertain global conditions, we have the unique ability to invest through cycles and use the diversity of our portfolio to our advantage,” Immelt said.
