GE Profit in Q3 Soars, Raises Outlook for 2012
General Electric Co., the largest conglomerate in the United States, said its profit grew by a fifth in the third quarter of this year, prompting the company to raise its outlook for 2012.
The largest US conglomerate General Electric Co. (GE) on Friday said its profit grew by a fifth in the third quarter of this year, prompting the company to raise its outlook for 2012.
In a report, GE said that strong demand from markets outside the United States has driven its earnings higher-than-expected to $2.34 billion or 22 cents per share in July to September 2011, up by 18 percent from $1.98 billion or 18 cents per share a year ago.
Connecticut-based firm said that the earning report for the third quarter has already include the 8 cent per shar charge to buy back the preferred shares the company had sold to Warren Buffett's Berkshire Hathaway Inc. during the financial crisis.
GE attributed the robust growth rate to the strong demand from Brazil, Russia and China, which has offset the effects of the sluggish economic recovery in the US and Europe.
"Our emerging market growth was very strong. It was a good quarter in a volatile environment," GE chief executive Jeff Immelt told investors.
GE, also known as the world's largest maker of jet engines and electric turbines, has met earlier expectations despite weakening profit margins on its industrial products.
Meanwhile, the company said that third-quarter profit margin was its weakest of the year and forecast improvement in the fourth quarter and into 2012.