GECAS Q3 net profit falls 31%

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Net income at operating lessor GECAS fell 31% in the third quarter to $173 million, compared with the year-earlier period.

Total revenues, however, inched up to $1.3 billion at the lessor, a unit of GE Capital, from $1.2 billion in the third quarter of 2012, says GE in an earnings release.

GE reported net earnings of $3.2 billion, a decrease of 9% from the year-ago period.

Revenues were $35.7 billion for the quarter, down 1% from the year-earlier period, driven by lower revenues at GE Capital due to planned asset reductions, and a negative foreign exchange impact of $132 million.

GE Capital continues to decrease the size of its portfolio, while focusing on its core businesses, says GE.

GE Capital earnings rose 13% on positive results from its real estate and consumer businesses. During the quarter, GE Capital paid $2 billion in dividends to the parent.

“Our third-quarter results were very strong in an improving global business environment,” says GE chairman and chief executive officer Jeff Immelt.

Immelt adds: “GE Capital is smaller and stronger; it is returning cash to the parent, while maintaining its profitability. And with a record backlog of $229 billion, we are winning in the market and are well positioned for 2014. Our overall framework for the year is unchanged.”