NEW YORK (AFP) — General Electric reported Friday a healthy 14 percent jump in third-quarter earnings, shaking off woes from the housing slump and credit squeeze.
The net profit of 5.54 billion dollars was lifted in part by the sale of GE's plastics division to a Saudi Arabian group earlier this year.
The diversified conglomerate -- seen as a microcosm of the US economy -- that produces jet engines, locomotives, water treatment plants and medical equipment, has a major finance arm and controls the media-entertainment giant NBC Universal, met Wall Street expectations with a profit per share of 50 cents excluding one-time gains and losses.
Revenues for the July-September quarter rose 12 percent to 42.53 billion dollars.
GE said it achieved its eleventh straight quarter of revenue growth of two to three times global economic growth.
"GE delivered a solid quarter in spite of extreme volatility in the financial services market and some one-time items in our industrial businesses," chairman and chief executive Jeff Immelt said.
Results for the quarter included a gain of 1.8 billion dollars from the sale earlier this year of GE's former plastics division to Saudi Basic Industries Corporation for a total of 11.6 billion dollars.
This was offset by a charge of 1.4 billion dollars for its discontinued Japanese personal loan business and its US finance unit WMC that had been involved in subprime mortgages. The company also took 600 million dollars in restructuring charges.
GE had previously announced that WMC would suffer a loss of 300 million to 400 million dollars in the third quarter and 950 million dollars for the full year.
GE's total orders were up 20 percent to 24 billion dollars and its backlog grew 19 billion dollars year-over-year, an increase of 43 percent.
The company reported profit growth in all its business units except health care, which showed a one percent decline.
The infrastructure division, which makes locomotives, jet engines and other equipment, saw profits rise 12 percent to 2.6 billion dollars, with revenues growing 19 percent.
GE's commercial finance arm reported an operating profit of 1.45 billion dollars, up 12 percent, while revenues increased 17 percent. GE Money, a personal finance division, accounted for a profit of 942 million dollars, up 13 percent, as revenues increased 23 percent.
NBC Universal, which owns Universal Studios and the NBC television properties, saw profits up nine percent at 589 million dollars as revenues grew three percent.
"NBC Universal posted its fourth straight quarter of segment profit growth, highlighted by the successful launch of its new, prime-time television line-up, a strong cable performance and a slate of popular summer films," Immelt said.
Unit chief "Jeff Zucker and his team have done an excellent job improving the content, operating the business, and expanding the portfolio," the GE CEO added.
The GE industrial division, which produces appliances and lightbulbs, saw its profit rise six percent to 513 million dollars as revenues were flat. GE recently announced a restructuring of that unit that resulted in the loss of 1,400 jobs worldwide.
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