General Electric Co. reported strong first-quarter growth at its GE Commercial Finance division, which is among Fairfield County”™s largest employers.
Fairfield-based GE had companywide earnings of $4.5 billion on revenue of $40.2 billion, with sales up 6 percent from the first quarter of 2006.
Commercial Finance recorded a 15 percent gain in revenue from a year ago to $6.3 billion, mostly on the performance of GE real estate, which had a 50 percent gain in part due to acquisitions. Commercial Finance”™s profits were up 21 percent to $1.4 billion.
What”™s more, the top-performing unit in GE was its Aviation Financing division in Stamford, whose results are included in GE Infrastructure rather than in Commercial Finance. GE Aviation Financial Services profits flew up 88 percent, and revenue, 34 percent.
Results at GE Money, the company”™s consumer finance arm, were “tempered by challenges” in its U.S. mortgage business, according to Jeffrey Immelt, chairman and chief executive officer of GE. Despite a 14 percent growth in revenue, GE Money managed just a 2 percent gain in segment profits.
The company”™s GE Healthcare unit was negatively impacted by a U.S. Food and Drug Administration order shutting down surgical device plants in Utah and Massachusetts.
“Both of these businesses are in great shape and should rebound during the remainder of the year,” Immelt said in a statement. “Our ability to deliver such a solid quarter with these short-term headwinds truly demonstrates the breadth, strength and diversity of our businesses.”
GE Healthcare last week acquired Wave Biotech L.L.C., an English company that sells bioreactors designed to replace more expensive stainless steel tanks and piping in the manufacture of pharmaceuticals.
The company also announced that it is launching a $250 million private equity fund to be managed by its NBC Universal division, investing in companies developing media or technologies for advertising services, wireless and digital content. GE has been trying to turn around NBC Universal, whose revenue was down 22 percent in the first quarter to $3.5 billion.
GE”™s plastics division, based in Pittsfield, Mass., continues to be the worst drag on corporate results, due in part to soaring prices on raw materials. GE Plastics”™ sales fell 3 percent in the first quarter, while its profit fell 46 percent, the worst performance in the company. GE has indicated it expects to find a buyer for the division before the fourth quarter this year.
Including GE Commercial Finance, Fairfield-based GE had 5,340 local employees at last count, according to a recent survey by the Fairfield County Business Journal.
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