NEW YORK ? General Electric Co. is bracing for another volatile year. The global conglomerate expects to see emerging markets from China to South America continue to grow while Europe falls into a recession.
Its own results are also telling two different stories: Its fourth-quarter profit improved when the results of sold-off businesses are excluded. But revenue fell short of Wall Street's expectations, partly because of a slowdown in Europe.
Shares of the Fairfield, Conn., company, which makes everything from jet engines to light bulbs, fell about 1 percent in midday trading. They're still up about 6 percent this year.
In a conference call with analysts, CEO Jeffrey Immelt called the last three months of the year "a good quarter (that) could have been even better."
But, he added: "I like our momentum, and really we feel good about where we are and what we can get done in 2012."
The CEO held onto his prediction for double-digit earnings growth despite some areas of concern. Revenue in the energy infrastructure division, GE's biggest, rose 19 percent, but its profit was flat. Health-care division profit was off by 5 percent. Profit at the home and business solutions divisions, which includes appliances, dropped 41 percent.
GE said infrastructure orders rose 15 percent in the final three months of 2011, leaving it with its biggest-ever order backlog of $200 billion. In a note to clients, Citi analyst Deane Dray said that backlog, combined with a 23 percent increase in equipment orders in the quarter, sets the company up to meet the lofty double-digit growth goal.
Including discontinued businesses, profit dropped 18 percent in the fourth-quarter. GE also said it saw slower growth in Europe, and its ongoing effort to make its GE Capital financing arm more efficient reduced revenue at the unit by 9 percent. GE Capital is the company's second-largest segment. The overall revenue decline of 8 percent reflects GE sale of its majority stake in NBC Universal to Comcast last year.
The transportation division was a bright spot. Revenue there grew by 43 percent. The division is the largest producer of diesel-electric locomotives and also makes drive systems for wind turbines and mining trucks.
Excluding discontinued businesses and certain pension costs, earnings were 39 cents per share. That topped analysts' forecast of 38 cents, based on a FactSet survey. But revenue fell below Wall Street's $40.05 billion estimate.
For all of 2011, the company earned $14.15 billion, or $1.23 per share, up 22 percent compared with $11.64 billion, or $1.06 per share, in 2010.
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