General Electric Reports Blowout Quarter, Page Is Finally Turned (GE)

General Electric Company GE reported earnings this morning, blowing out Wall Street consensus, and that's making Wall Street and investors happy this mroning. The company reported first quarter earnings of 33 cents on revenues of $38.4 billion, versus Wall Street estimates of 28 cents on $34.64 billion. GE Capital led the way, and it looks like General Electric has turned the corner. GE Capital's profits came in at $1.8 billion for the quarter, and revenue rose 3% for that sector in the quarter. "As today's results show, GE has emerged from the recession a stronger, more competitive company," GE Chairman and CEO Jeff Immelt said in a statement. “As today's results show, GE has emerged from the recession a stronger, more competitive company,” GE Chairman and CEO Jeff Immelt said. “GE Healthcare, Transportation and Aviation delivered strong results. Strategic investments in high-growth segments have strengthened the company's Energy portfolio and position that business to return to growth in the second half of this year. We ended the quarter with a record high backlog of $177 billion. “GE Capital also had a strong first quarter, earning $1.8 billion after tax,” Immelt said. “With losses having peaked, we are originating new business at attractive margins and our funding costs continue to be favorable. Reserve coverage decreased slightly in the quarter, driven by improving portfolio quality. Since the first quarter of 2010, we've improved our GECC Tier 1 common ratio to 9.8% from 7.8% and reduced GECC leverage to 4.5:1 from 5.5:1. We have strengthened the GE Capital franchise and are on track for solid earnings growth.” The company also raised its dividend, going to 15 cents from 14 cents, and it's payable to shareowners of record at the close of business on June 20, 2011. “We are pleased to declare for the third time in the past 12 months an increase in GE's quarterly dividend,” GE Chairman and CEO Jeff Immelt said. “It reflects not only our continued strong cash generation and accelerated recovery at GE Capital, but also solid underlying performance in our Industrial businesses and confidence in the GE business model overall.”