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Earnings Analysis: 
General Electric Profit More than Doubles
Author: 123jump.com Staff
123jump.com
Last Update: 2:36 PM EST January 19 2007



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General Electric fourth-quarter profit more than doubled as the diversified industrial products and media conglomerate saw strong revenue growth in its infrastructure, health care and financial services businesses. Schlumberger fourth-quarter profit soared due to significant price increases, heavy exploration activity worldwide and better-than-expected results at company’s seismic operation. Molex second-quarter profit rose 13% on a 20% increase in revenue.

 
General Electric Co. (GE: chart), develops, manufactures, and markets various products for the generation, transmission, distribution, control, and utilization of electricity, said that its fourth-quarter net income increased to $6.58 billion, or 64 cents per share compared with $3.16 billion, or 30 cents per share, from the 2005 fourth-quarter. Quarterly revenue climbed 11% to $44.62 billion versus $40.31 billion a year earlier.

Schlumberger Ltd. (SLB: chart), oilfield services provider, said that its fourth-quarter net income rose 71% to $1.13 billion, or 92 cents per share, compared with $661 million, or 54 cents per share in the year-ago quarter. Revenue jumped 33% to $5.35 billion versus $4.02 billion a year earlier. Quarterly profit growth was driven by WesternGeco progress and its information solutions arm.

Molex Inc. (MOLX: chart), electronic components maker, reported a second-quarter net income of $66.4 million, or 36 cents per share, up from $58.5 million, or 31 cents per share, a year ago. Revenue jumped 20% to $837.5 million versus $697.3 million in the same quarter a year ago. The results were in line with the lower earnings forecast the company provided last week, a decline it blamed primarily on weaker sales and prices in its mobile phone business.

SunTrust Banks Inc. (STI: chart), banking and financial products and services provider, said that its fourth-quarter net income rose 1% to $523.6 million, or $1.46 per share, compared with a net income of $518.5 million, or $1.43 per share, a year ago. Quarterly revenue climbed 3% to $2.07 billion versus $2 billion, while noninterest income gained 11% to $882.6 million from $797.9 million a year earlier.

Citigroup (( C )), student lender, said its fourth quarter profit fell 26% versus a year ago after a previously announced $415 million charge related to the shuttering of its Japanese consumer finance business. The company said it earned $5.13 billion, or $1.03 a share in the quarter, compared to $6.93 billion, or $1.37 a share a year ago. On a continuing operations basis, the per share earnings were $1.03 versus 98 cents.

Regions Financial Corp. (RF: chart), banking and investment services provider, said that its fourth-quarter earnings increased to $361.6 million, or 56 cents per share, compared with $254 million, or 55 cents per share, a year earlier. Net interest income grew to $1.1 billion compared to $748.6 million, while non-interest income rose to $635.3 million versus $422.8 million in the same period a year earlier. Separately, the Birmingham, Ala. financial services company said it was selling its EquiFirst Corp. non-prime mortgage origination business to Barclays Bank PLC for $225 million.

Johnson Controls Inc. (JCI: chart), interior experience, building efficiency, and power solutions company, said that its first-quarter net earnings declined to $162 million, or 82 cents per share, compared with $165 million, or 85 cents per share, in the same period a year ago. The company’s earnings from continuing operations edged down to 85 cents per share compared to 86 cents per share a year ago. Revenue jumped to $8.21 billion versus $7.53 billion in the last-year quarter.

International Business Machines Corp. (IBM: chart), information technology operator, reported a fourth-quarter profit of $3.54 billion, or $2.31 per share, on revenue of $26.4 billion, but sales from the company''s hardware division were viewed as disappointing. IBM said hardware revenue totaled $7.2 bilion, up slightly from $6.9 billion a year ago, while the division''s gross margins slipped to 41% from 42% in the prior year.

Consolidated Edison Inc. (ED: chart), energy-related products and services provider, reported fourth-quarter earnings of $201 million, or 78 cents per share, up from a year-ago profit of $138 million, or 56 cents per share. Revenue declined to $2.82 billion from $3.12 billion in the same period a year earlier.

Nuveen Investments Inc. (JNC: chart), provider of investment services for institutional and rich private investors, said fourth-quarter net income rose 15% to $50.2 million, or 60 cents per share, from $43.5 million, or 53 cents per share in the year-ago period. Revenue jumped 24% to $195.6 million from $157.1 million a year earlier.

Fastenal Co. (FAST: chart), operates stores that sell industrial and construction supplies, said that its fourth-quarter earnings increased to $45.6 million, or 30 cents per share, compared with a year-ago profit of $39.2 million, or 26 cents per share. Revenue climbed to $448.7 million versus $384 million in the same period a year earlier.

KeyCorp (KEY: chart), banking and financial products and services provider, said Thursday fourth-quarter net income for the three months ended Dec. 31 fell to $146 million, or 36 cents a share, compared to $296 million, or 72 cents a share in the year-ago period. Operating income increased 10% to $311 million, or 76 cents a share from $284 million, or 69 cents a share in the year-ago period. The company took a loss of $165 million for discontinued operations on its Champion Mortgage finance business, which saw the sale of its nonprime mortgage loan portfolio.
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