GE Q2 Majap Revenue Rises 14%

FAIRFIELD, CONN.— With new products continuing to drive share gains and increase profitability in General Electric's major appliance segment, second quarter revenue climbed by 14 percent, reaching $1.6 billion, up from $1.4 billion in the year-ago period.

Operating profit in GE's majap business for the second quarter, ended June 30, jumped 28 percent, hitting $119 million, up from $93 million in the same period in 2001.

For the six months, majaps enjoyed an 11 percent sales gain, to $3 billion, compared with $2.7 billion year over year. Majap segment operating profit rose 17 percent, to $210 million, up from $180 million in the same six months last year.

Revenue in GE's Capital Services segment dipped 5 percent in the second quarter, down to $13.9 billion, compared with $14.4 billion in the same quarter last year. Net earnings for the segment dropped 18 percent, to $1.3 billion, down from $1.6 billion in the second quarter of 2001.

For the six months, GE Capital Services saw total revenue slide 5 percent, to $27.8 billion, down from $29.1 billion in the same period last year. Earnings for the segment also decreased 5 percent in the six months, reaching $3 billion, compared with $3.2 billion in the same six months in 2001.

Helped by improved performance in such short-cycle businesses as its major appliance business, overall GE revenue climbed 4 percent in the second quarter, to $33.2 billion, compared with $32 billion in the second quarter last year. Net earnings rose 14 percent in GE's second quarter, hitting $4.4 billion, up from $3.9 billion in the year-ago three months.

For the six months, GE's overall revenue hit $63.7 billion, up from $62.5 billion in 2001. Net earnings for the six months came in at $6.9 billion, compared with $6.5 billion year over year.