FAIRFIELD, Conn., Oct. 11 (UPI) -- General Electric Co. said Friday its third-quarter net income climbed 25 percent as NBC television and the sale of its Internet commerce unit helped offset sluggish demand for some of its products.
Jeff Immelt, chairman and chief executive officer, said, "The economy is much tougher than anyone planned, but the fundamentals of GE are in great shape."
The maker of light bulbs, jet engines and appliances said its third-quarter net income rose to $4.1 billion, or 41 cents a share, from $3.28 billion, or 33 cents a share during the same period last year.
Analysts on Wall Street were expecting GE to report a net income of 41 cents a share, according to Thomson First Call.
Revenue rose 11 percent to $32.6 billion from $29.5 billion a year ago.
The company noted last year's results reflected insurance losses of $400 million related to the Sept. 11, 2001, attacks on the United States.
GE also said it recorded a one-time gain in the latest quarter of $317 million from the sale of its GXS Internet commerce business. That helped offset losses of $156 million at Employers Reinsurance Corp., whose underwriting was hurt by floods in Europe flooding and a large factory fire. GE Equity also took a $167 million loss on the sale of battered technology stocks.
The company said top rated television shows at NBC, which capitalized on strong ad pricing, boosted profits at that unit by 59 percent.
But GE plastics saw growth stall in the third quarter, contributing to a 19 percent profit decline at the unit.
The company said growth at its power systems unit, which makes gas turbines, also stalled in the quarter. Profit increased 16 percent, compared to 66 percent growth in the previous quarter.
Profit at GE's aircraft engine unit, which will cut 1,000 jobs this year, fell because key commercial airline customers continue struggle in the aftermath of the Sept. 11 attacks.
Profit on sales of GE appliances rose 21 percent, but lighting products recorded a $22 million loss as the company revamps its consumer products business.
Revenue from GE financial service surged 13 percent to $14.98 billion while net earnings climbed 19 percent. Assets increased 21 percent to $473 billion as units of commercial finance agreed to deals totaling $5.2 billion to buy assets from Deutsche Financial Services and ABB.
Looking ahead Immelt said, "We've got a great team of people who continue to serve our customers effectively and who come to work looking for new products and services, and new markets for growth. We are maintaining our full-year target of $1.65 per share in the environment we see today."
That's up 20 percent from the $1.37 a share GE earned in 2001.
