Executive Business Briefing

Here is a look at more of Thursday's top business stories:

Earnings rise 9 percent at GE

FAIRFIELD, Conn., Jan. 17 (UPI) -- General Electric Co. said its fourth quarter net income rose 9 percent, lifted by strength in its and finance segments.

The company also affirmed financial targets for 2002, saying it could meet its profit growth goals even if the economy does not recover.

GE, the world's largest company by stock market capitalization, said its fourth quarter net income rose to a record $3.93 billion, or 39 cents a share, from $3.59 billion, or 36 cents a share during the same period a year earlier.

Analysts on Wall Street were expecting GE to posts a net income of 39 cents a share, according to Thomson Financial/First Call.

Revenues eased to $33.98 billion from $34.98 billion a year ago. But, on a comparable basis, the company said its revenues rose 3 percent versus the fourth quarter of 2000.

"2001 was an especially challenging year," said Chief Executive Jeff Immelt.

"This is a tribute to our great global team and the strength of the GE business model," he said.

Among GE's many segments, the Power Systems, Technical Products and Services, and Appliances businesses generated profit growth. GE Capital, the company's largest segment, reported a 15 percent increase in earnings before accounting changes.

On the down side, the Aircraft Engines, Industrial Products and Systems and Materials operations along with broadcasting unit NBC posted declining profits for the fourth quarter.

GE said NBC strengthened its position as the Number 1 network for adults 18 to 49, winning its seventh consecutive sweep month in this key demographic in November, and ending 2001 with the largest lead (16 percent) among viewers 18-49 that any network has had in the past four years.

NBC received the most Emmy nominations and awards of any broadcast network for the seventh consecutive year, and won 16 Emmys, including 8 for The West Wing. The Today Show, Nightly News, and Meet the Press continued their leadership in key demographics, with Nightly News finishing first in total viewers for the ninth consecutive quarter.

Immelt said, "The GE business model works. Our diversity facilitates growth in every cycle, and our cash flow confirms the quality of our earnings. Our initiatives are accelerating, and give us strong momentum going into 2002. Our financial strength gives us the ability to invest in new products and services and make strategic acquisitions that position the company for the long term.

"These results reflect the efforts of a great GE team that is executing extremely well in a difficult global environment. We are well positioned to meet our target of 17 to 18 percent earnings growth in 2002, even if the economy does not recover, and to grow more if a recovery does take place. Our best days are ahead," Immelt added.

Earnings fall 73 percent at Delphi Automotive Systems

TROY, Mich., Jan. 17 (UPI) -- Automotive parts supplier Delphi Automotive Systems Corp. said its fourth quarter net income fell 73 percent before one-time items as automakers curtailed production due to the slowing U.S. economy.

Delphi, the world's largest automotive supplier, said its fourth quarter net income fell to $55 million, or 10 cents a share, from $200 million, or 36 cents a share, during the same period a year earlier.

Analysts on Wall Street had been expecting Delphi to post a net income of 10 cents a share, according to Thomson Financial/First Call.

Delphi had warned in October that it expected fourth quarter earnings of 5 cents to 15 cents a share, below forecasts then of 19 cents per share.

Delphi said its sales declined 8 percent to $6.4 billion due to softer year-over-year customer production levels and planned portfolio actions.

Sales to non-GM customers were $2.1 billion, or 33 percent, during the quarter.

Chief Financial Officer and Executive Vice President Alan S. Dawes said the company experienced stable, but lower, customer production schedules despite zero percent financing and other retail incentives offered by automakers during the quarter, as the automakers continued to sell out of their existing inventories.

"In the fourth quarter of 2001, we continued to take action to differentiate our performance from the remainder of the automotive supplier segment," said J.T. Battenberg III, chairman, CEO and president.

"While faced with declining customer production levels, recessionary economics and the impact of extraordinary national events, we've steadily implemented our strategies to transform our company by streamlining our portfolio, rationalizing excess capacity and reducing operating costs," Battenberg added.

Earnings decline 19 percent at United Technologies

HARTFORD, Conn., Jan. 17 (UPI) -- United Technologies Corp., whose products range from engines to elevators, said its fourth quarter net income fell 19 percent as disruptions in the airline industry hurt its aerospace business.

The diversified manufacturer and defense contractor also reaffirmed its 2002 profit target of $4.32 a share, including the effect of an accounting change.

United Technologies said its fourth quarter net income declined to $345 million, or 69 cents a share, from $426 million, or 84 cents a share during the same period a year earlier.

The latest results included restructuring and related charges of 17 cents a share related to actions initiated in the quarter.

Revenues for the quarter rose 3 percent to $7.0 billion.

Analysts on Wall Street had expected the company to post a net income of 67 cents a share, according to Thomson Financial/First Call.

United Technologies lowered its fourth-quarter profit outlook following the Sept. 11 attacks on the United States.

"In the wake of Sept. 11 and its severe impacts on commercial aviation, UTC turned in another solid quarter," said George David, chairman and chief executive officer.

"We followed our usual practice of absorbing restructuring and related charges in operating income. Before these, earnings per share increased slightly even in this most challenging quarter and were up 13 percent for the full year. Available cash flow was exceptional in the quarter at $597 million and brought the full year available cash flow essentially equal to net income."

The company recorded $126 million of restructuring and related charges in the fourth quarter. The majority of these charges were at the aerospace companies, and secondarily at Carrier, to cover work force reductions stemming from industry downturns exacerbated by the Sept. 11 terrorist attacks.

Earnings decline at Duke Energy

CHARLOTTE, N.C., Jan. 17 (UPI) -- Duke Energy Corp. said its fourth quarter net income fell to $225 million, or 28 cents a share, from $284 million, or 38 cents a share during the same period a year ago.

Analysts on Wall Street had expected the company to post a net income of 45 cents a share, according to Thomson Financial/First Call.

Duke Energy Chairman, President and Chief Executive Officer Richard B. Priory said the company's strong results in 2001 demonstrate the nimbleness of its balanced energy portfolio strategy and its focus on operational excellence.

"Duke Energy's balanced and disciplined approach to the market, which produces a strong balance sheet and sustainable earnings growth, ensured our success in 2001 and continues to provide for a bright outlook for 2002 and beyond. Despite all of the turbulence in the industry, it was our best year ever," Priory said.

"In 2001, we invested in regional growth opportunities in both power and natural gas, bolstering our presence in key energy markets and our position as a leading wholesale energy producer and trader," Priory said.

"We are positioned for growth in 2002 at the high-end of our stated guidance for 10 percent to 15 percent annual earnings per share growth from a 2000 base of $2.10," he added.