General Electric Company (NYSE:GE) disclosed that it could see ten percent increase in orders to $25.7 billion in the first quarter from $23.5 billion in the previous year period. Similarly, its backlog grew three percent to $324.3 billion from $316.1 billion in the same quarter of 2016.
General Electric said that its net earnings were $0.6 billion or earnings of 7 cents a share in the first quarter. On a continuing operational basis, its earnings would have been $0.9 billion or earnings of 10 cents a share while adjusted EPS would have been 21 cents, which is four cents more than the estimates.
The business conglomerate’s total revenue fell one percent to $27.7 billion. However, this was higher than the analysts’ predictions of $26.41 billion.
The company revealed that it is continuing its portfolio transformation and invest in innovations in its digital and additive. The company is also implementing a cost cutting program of $2 billion in the current and next year to deliver more value to its shareholders.
Commenting on the results, General Electric chairman and CEO, Jeff Immelt, said, “We returned $4.4 billion to shareowners through dividends and buyback. Industrial operating cash flows* were negative $1.6 billion driven primarily by an increase in working capital and timing of billings on our long-term equipment and service contracts. We expect cash flows to improve throughout the remainder of the year, with no change to our full year cash flow framework. We reaffirm our 2017 operating framework for Industrial operating + Verticals EPS,* organic revenue growth* and Industrial operating margin* expansion.”
Despite beat results, GE shares are trading down 0.40 percent in pre-market on Friday.