NEW YORK — General Electric Co. posted increased revenue and profit for the fourth quarter on rising sales in emerging markets, higher banking profit, and stronger global sales of aircraft engines and oil and gas drilling equipment.
The company’s shares fell 2.3 percent Friday, though, because GE failed to increase its profit margin as much as predicted.
GE reported that its net income rose 5 percent to $4.2billion, or 41 cents per share, for the October-December period on revenue of $40.38 billion. That’s up from $4.01 billion, or 38 cents per share, on revenue of $39.16billion in the fourth quarter of 2012.
Adjusted to remove the effects of one-time items and discontinued operations, GE earned 53 cents per share in the latest period.
But a manufacturing problem that has affected the quality of some wind turbine blades and poor performance by the company’s small energy management division prevented the company from meeting its goal of improving profit margin in its industrial divisions by 0.7 percent. Instead, it improved 0.66 percent. — AP
NEW YORK — Morgan Stanley says its earnings fell in the fourth quarter as the bank was hit by legal costs related to mortgage-backed securities.
However, revenue and adjusted earnings came in better than analysts were expecting.
The New York investment bank earned $433 million, or 20 cents a share, in the final three months of 2013. That compared with $982 million, or 49 cents a share, a year earlier.
Excluding litigation costs and a tax benefit, the bank earned 50 cents a share, beating the 44 cents forecast by Wall Street analysts. The results also exclude accounting adjustments related to the value of the bank’s debt. Morgan Stanley’s revenue rose 9 percent to $8.2 billion from $7.5 billion in the fourth quarter, beating analysts’ forecasts of $8.02 billion. — AP
DALLAS — United Parcel Service reported preliminary fourth-quarter earnings that trailed analysts’ estimates after a surge in online shopping just before Christmas forced it to hire more temporary workers than planned and miss holiday deliveries.
Earnings per share will be $1.25 in the quarter, the company said in a statement, falling short of a $1.43 average estimate from 26 analysts. Atlanta-based UPS expects to report an adjusted profit of $4.57 a share for 2013, below its prior projection of $4.65 to $4.85, it said. Analysts anticipated $4.75 on average. UPS will report results Jan. 30.
— Bloomberg News