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21 Jul 16. GE profit beats estimates as power revenue jumps. General Electric Co on Friday reported a sharp rise in adjusted net income in the second quarter, as its aviation, healthcare and power businesses countered weak demand for oil and gas and transportation equipment. A boost from the sale of its appliances business also lifted earnings.
GE’s adjusted earnings per share of 51 cents a share topped the 46 cents a share analysts expected, according to Thomson Reuters I/B/E/S.
The figure included a gain of 20 cents a share from the sale of GE’s appliances business to Qingdao Haier, which closed in June. The gain was offset by 9 cents in restructuring costs and other items, GE said.
GE affirmed its 2016 operating forecast and said it expects strong growth to continue in the second half.
“The diversity and scale of our portfolio enabled the company to perform well despite a volatile and slow growth economy,” GE Chief Executive Jeffrey Immelt said in a statement.
Revenue rose 15 percent to $33.49 bn, helped by a 31 percent rise from the power business. Sales from continuing industrial operations, known as organic segment revenue, fell 1 percent to $24.4 bn, less than some analysts had expected.
GE shares were at $32.39 in pre-market trading, down from Thursday’s closing price of $32.59 on the New York Stock Exchange.
During the quarter, the maker of power plants, aircraft engines, locomotives and other industrial equipment returned $18 bn to shareholders through share buybacks.
It shed its designation as a non-bank systemically important financial institution after divesting most of its GE Capital business, a change expected to free about $18 bn in capital, which GE had pledged to return to shareholders through buybacks. The sale of the GE Capital units also positions GE to take on debt to fund acquisitions and growth.
22 Jul 16. Honeywell’s quarterly profit beats estimates. Honeywell International Inc reported a better-than-expected quarterly profit, helped by higher sales in its automation and climate control systems division. Honeywell bumped up the bottom end of its full-year earnings forecast to $6.60 per share from $6.55. It kept the top end at $6.70 per share.
The company however lowered it 2016 sales forecast to $40.0bn-$40.6bn from $40.3bn-$40.9bn. Analysts on average were expecting 2016 earnings of $6.66 per share and revenue $40.64bn, according to Thomson Reuters I/B/E/S. Net income attributable to Honeywell rose 7.4 percent to $1.28bn, or $1.66 per share, in the second quarter ended June 30. Analysts were expecting earnings of $1.64 per share. Revenue rose 2.2 percent to nearly $10bn, but fell shy of analysts’ estimates of $10.13bn. Sales in Honeywell’s automation and control solutions business, its second-biggest in terms of revenue, rose 9 percent to $3.89bn. The company also said it would realign this business – which makes industrial safety products and controls and displays for heating and cooling systems – into two new divisions: home and building technologies and safety and productivity solutions.
21 Jul 16. Dassault Aviation on Thursday posted lower first-half operating income and revenues, driven in part by pricing pressure on its business jet division, and reduced its forecast for Falcon business jet deliveries to 50 aircraft from 60 for 2016. The family-controlled aerospace firm, which also builds Rafale warplanes, said it had concluded discussions aimed at the sale of 36 combat jets to India and was waiting for a final Indian government decision before the deal could be signed. First-half operating profit fell to 125m euros($137.66m) from 144m as revenues slipped to 1.662bn euros from 1.675bn. Analysts were on avera