General Electric Co surpassed earnings estimates by analysts for the fourth quarter with increased sales in its power and water segment, offsetting the impact of a drop in oil prices.
The largest supplier in the world of heavy-duty jet engines and heavy-duty gas turbines ended 2014 with its eye on crude, which likely will weigh on the company’s fast-growing gas and oil business as CEO Jeffrey Immelt puts GE in a position as a provider of global industrial infrastructure.
Adjusted profit in its continuing operation increased 4% from one year ago to end the quarter at $5.6 billion equal to 56 cents per share, said the company, based in Fairfield, Connecticut.
Immelt said via a prepared statement that the environment is still volatile but the company continues to see opportunities in infrastructure growth.
Immelt, in 2014 took transformational measures in an effort to rein in the company’s finance operations as well as expand its manufacturing units.
Last month, another hurdle was cleared by GE in its acquisition of $14.1 billion that is still pending of Alstom SA’s energy assets, as the shareholders of the French company approved that deal.
GE’s sales in its oil and gas arm fell by 6% during the just ended fourth quarter as its operating profit increased by 1%. GE has previously announced that earnings in that division could drop during 2015.
The total revenue for the quarter was $42 billion, which was short of the average estimates by analysts there was for $42.2 billion.
General Electric stock was down 9.8% during 2014, compared to an increase of 11% in the S&P 500 index.
Shares were up 0.4% in trading before the bell on Friday. Distribution of the earnings report for GE was delayed due to the company’s site appearing to experience technical problems.
In all, the industrial segment revenues were up 6% and power and water revenue increased 22%, while revenues in transportation were up 8%.