Sluggish activity in oil and gas weighed on General Electric's third-quarter results Friday, offsetting strength in other businesses and pushing profits lower. Net income for the industrial conglomerate fell 20.4 percent to $2.0 billion. Revenues rose 4.4 percent to $29.3 billion. General Electric scored higher net profit in several businesses, including power, renewable energy, aviation and health care.
But oil and gas profits fell by 42.1 percent to $353 million. Orders for new work fell sharply with "pressure across all segments," GE said in a presentation. GE has radically streamlined its GE Capital division to focus on industrial operations. It is also emphasising its technological chops as it confronts challenges that have marred earnings for some other large industrial companies this quarter, such as the rising dollar and anemic global growth.
"Our strength as a diverse, digital industrial company continues to enable us to deliver in a slow growth, volatile environment," said chief executive Jeff Immelt. Results translated into operating earnings of 32 cents a share. GE shares fell 1.6 percent to $28.62 in pre-market trade.
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