General Electric Co. (NYSE: GE) reported Thursday that its first-quarter net profit climbed to $3.43 billion, or 31 cents a share, from $1.95 billion, or 17 cents a share, in the year-ago quarter. On an adjusted basis, the company earned 33 cents a share. Revenue increased 6% to $38.4 billion from $36.20 billion. Analysts, on average, had expected the company to report earnings of 28 cents on revenue of $34.64 billion.
Separately, General Electric's board announced that it has raised the quarterly dividend from $0.14 per outstanding common share of the company to $0.15 per outstanding common share. The board declared that the dividend is payable July 25, 2011 to shareowners of record at the close of business on June 20, 2011. The ex-dividend date is June 16, 2011.
"As today's results show, GE has emerged from the recession a stronger, more competitive company," GE Chairman and CEO Jeff Immelt said. "GE Healthcare, Transportation and Aviation delivered strong results. Strategic investments in high-growth segments have strengthened the company's Energy portfolio and position that business to return to growth in the second half of this year. We ended the quarter with a record high backlog of $177 billion.
"GE Capital also had a strong first quarter, earning $1.8 billion after tax," Immelt said. "With losses having peaked, we are originating new business at attractive margins and our funding costs continue to be favorable. Reserve coverage decreased slightly in the quarter, driven by improving portfolio quality. Since the first quarter of 2010, we've improved our GECC Tier 1 common ratio to 9.8% from 7.8% and reduced GECC leverage to 4.5:1 from 5.5:1. We have strengthened the GE Capital franchise and are on track for solid earnings growth."
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