GE Q3 Majap Segment Sales, Profits Rise
By Jeff Malester -- TWICE, 10/25/2004
Fairfield, Conn. — GE's major appliance business, which accounts for a large part of the company's consumer and industrial division results, enjoyed a 7-percent revenue increase and 31-percent profit rise in the third quarter.
Revenue in the majap segment climbed to $3.4 billion in the three months, ended September 30, up from $3.2 billion in the year-ago period.
The company's majap segment delivered a double-digit 31-percent earnings growth increase, which — along with the healthcare segment's same 31 percent hike — led all other GE business segments during the third quarter. Majap segment profit totaled $163 million, compared with a year-on-year $124 million.
GE reported that eight of its 11 business segments recorded at least double-digit earnings growth in the quarter.
Majap segment profit in the three months was bolstered by increased margins for high-end Monogram and Profile appliances, up by 39 percent and 24 percent, respectively, compared with the third quarter in 2003.
Increased margins, spurred by several new product launches — including the new Profile 42-inch built-in refrigerator and Monogram integrated dishwasher — also helped boost overall majap segment earnings in the third quarter.
For the nine months, GE's commercial and industrial majap segment also recorded a 7-percent revenue increase, hitting $10 billion, up from $9.4 billion the previous year.
Segment profit jumped 21 percent in the first nine months, reaching $516 million, compared with $425 million in the same period in 2003.
Consolidated GE revenue in the third quarter, led by a jump in orders in the healthcare and transportation segments, rose 15 percent to $38.3 billion from $33.4 billion year-over-year, while earnings increased 1 percent to $4.1 billion from $4 billion, before the effect of a required accounting change. Net earnings, including the accounting change, climbed 11 percent to $4.1 billion from $3.6 billion.
For the nine months, GE consolidated revenue jumped 12 percent, reaching $108.7 billion from $97.2 billion the previous year, while earnings, before the accounting change, rose 2 percent to $11.2 billion from $11 billion. Net earnings, with the accounting change, increased 7 percent to $11.2 billion from $10.4 billion.
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