General Electric (GE) today said fourth-quarter earnings surged 47 per cent on the turnaround at its reinsurance unit.
GE missed its benchmark of annual double-digit profit growth for the second straight year. But company chairman Mr Jeff Immelt said the Fairfield, Connecticut-based industrial conglomerate is gathering momentum to produce earnings growth of at least 10 per cent in 2005.
The 19 per cent rise in fourth-quarter orders bodes well for 2005 more so than for 2004, said Harriet Baldwin, an analyst at independent research firm Palladian Research.
GE expects nine of its 11 business units to produce double-digit earnings growth in 2004. Still, its forecast for 2004 calls for at best modest profit growth and leaves room for a possible decline from merger-related costs and lower non-cash pension earnings.
Shares of GE rose to $32.39 in pre-market trade, up from a close of $32.00 on the New York Stock Exchange yesterday.
GE reported fourth-quarter net earnings of $4.56 billion, or 45 cents per share, up from $3.1 billion, or 31 cents per share, a year earlier when it took a pre-tax charge of $2.5 billion to bolster reserves at Employers Reinsurance Corp.