Profits and sales grew during the 2nd quarter for GE Healthcare (NYSE:GE), helping the industrial conglomerate beat Wall Street’s earnings forecast.
GE Healthcare’s operating profits rose 11% to $782 million on sales growth of 4% to $4.53 billion “driven by strong volume growth and cost productivity,” General Electric said, noting a margin gain of 110 basis points
Overall, GE swung to black ink for the 3 months ended June 30, posting profits of $2.74 billion, or 36¢ per share, on sales growth of 14.6% to $33.49 billion.
Adjusted to exclude 1-time items, earnings per share were 51¢, a full nickel ahead of The Street.
“The diversity and scale of our portfolio enabled the company to perform well despite a volatile and slow growth economy. We delivered $0.51 of earnings per share with strong execution in power, aviation and healthcare that offset challenging environments in oil & gas and transportation. We expect strong organic growth in the 2nd half of the year and reaffirm our 2016 operating framework,” chairman & CEO Jeff Immelt said in prepared remarks.
GE shares were down -0.9% to $32.29 apiece today in pre-market trading. The stock closed down -0.6% yesterday at $32.59per share.
General Electric ditched most of its GE Capital business, freeing about $18 billion the company pledged to use to buy back its own shares. The move also expands GE’s ability to use debt to fund buyouts and drive growth.
Material from Reuters was used in this report.
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