23 Jan 09. GE announced today fourth-quarter 2008 earnings from continuing operations of $3.9bn, or $.37 per share before preferred dividend, or $.36 per share attributable to common shareowners. Results included $1.5bn of after-tax restructuring and other charges, including increased reserves in current environment, which are above the Company’s original plan and the restructuring will lower costs for 2009 and beyond. For the year, revenue was $183 billion, up 6%, and earnings were $18.1bn, down 19%. This was the third highest earnings year in GE history. “In a very tough environment, we delivered fourth quarter business results in line with expectations we provided in December,” Chairman and CEO Jeff Immelt said. “We grew Infrastructure and Media by 3% in the quarter and 10% for the year. Energy Infrastructure led the way in the quarter with 11% segment profit growth driven by continued global demand. Technology Infrastructure grew earnings by 1%, led by 21% growth in Aviation. NBC Universal segment profits declined 6% in fourth quarter as strong cable earnings were offset by declines in the local stations.
Full-year and Fourth-quarter 2008 Financial Highlights:
Full-year earnings from continuing operations were $18.1bn, down 19% from $22.5bn in 2007. EPS from continuing operations attributable to common shareowners were $1.78, down 19% from last year’s $2.20. Segment profit fell 9%, as strong 26% growth at Energy Infrastructure was more than offset by a 29%
decline at Capital Finance. Including the effects of discontinued operations, full year 2008 net earnings were $17.4bn compared with net earnings of $22.2bn in 2007. Full-year revenues grew 6% to $183bn reflecting the net effect of acquisitions and core growth. GE Capital Services’ (GECS) revenues fell 1% from last year to $71.3bn. Industrial sales were $112.0bn, an increase of 12% over 2007. Fourth-quarter earnings from continuing operations were $3.9bn, down 43%
from $6.8bn in fourth quarter 2007. EPS of $.37 before preferred dividend
(including charges), or $.36 attributable to common shareowners, down 47% from last year’s $.68. Segment profit fell 25%, on a 67% decline at Capital Finance.
Fourth-quarter revenues were $46.2bn, down 5% from fourth quarter 2007, reflecting a stronger U.S. dollar, and lower core growth, partially offset by the net effects of acquisitions. GECS revenues fell 18% from the fourth quarter
of 2007. Industrial sales were $31.1bn, a 7% increase from fourth quarter
2007. Cash generated from GE’s operating activities in 2008 totalled $19.1bn, down 18% from $23.3bn last year, reflecting a 5% increase from the Industrial businesses. This increase was more than offset by a decrease in GECS’ dividends primarily due to a non-repeat $2.7bin special dividend and a third quarter 2008 reduction in GECS dividend rate to 10% of earnings. The Company had solid Industrial cash flow from operating activities of $16.7bn, an increase of 5% from 2007.
19 Jan 09. Inmarsat plc (ISAT:LON) announced that the US Federal Communications Commission (FCC) has issued its order approving the transfer of Stratos’ FCC licences to Inmarsat. We previously announced on 11 December 2007 that Inmarsat Finance III Limited, an Inmarsat subsidiary, has a call option over the Stratos shares, which are currently held in an irrevocable trust. The call option can be exercised no earlier than 15 April 2009. The exercise of the call option remains subject to certain other governmental approvals, which are expected to be obtained before 15 April. (Source: Business4Media.com)
27 Jan 09. Texas Instruments, the world’s third largest chipmaker, reported lower sales and announced layoffs on Monday as demand in all its key markets continued to weaken. Fourth-quarter sales fell to $2.49bn, or 8 cents a share, below analyst estimates of 11 cents. Quarterly profit fell to $107m from $756m a year ago. However, the profit decrease was smaller than expected and shar