GE profit falls after accounting change

General Electric posted a 3 per cent decline in first-quarter net income today after taking a charge related to an accounting…

General Electric posted a 3 per cent decline in first-quarter net income today after taking a charge related to an accounting change.

On an operating basis, profit rose 17 per cent as strength in the capital and power segments offset the effect of a weak US economy on other units.

GE, the world's largest company by stock market capitalisation, reported net earnings of $2.50 billion, or 25 cents per share, for the first quarter compared with $2.57 billion, or 26 cents per share, a year ago.

Excluding items, earnings from ongoing operations totalled 35 cents per share compared with 30 cents per share a year ago.

READ MORE

Revenues for the quarter totalled $30.52 billion versus $30.49 billion in the first quarter of 2001.

The results met Wall Street targets. Analysts pegged GE at a profit of 35 cents per share, with estimates ranging narrowly from 34 cents to 36 cents per share, according to tracking firm Thomson Financial/First Call.