GE Sees Profit Increase 9%

General Electric Co. said Thursday that its first-quarter profit rose 9% as strong sales of aircraft engines, locomotives, medical equipment and financial services offset weaknesses in energy and its NBC network.

The Fairfield, Conn.-based company said net earnings for the three months ended March 31 were $4.31 billion, or 41 cents a share, compared with $3.96 billion, or 37 cents, a year ago.

Total revenue climbed 10% to $37.8 billion in the quarter from $34.4 billion a year ago.

“We had a strong performance in the quarter highlighted by double-digit growth in earnings, revenue and cash flow,” GE Chairman and Chief Executive Jeffrey Immelt said.

Earnings from continuing operations were 39 cents a share, which matched the consensus estimate of analysts surveyed by Thomson Financial.

The results included a gain of $300 million from the sale of insurance businesses, which GE has been selling to focus on faster growth areas. Revenue in that area climbed 32%, while its water business saw sales rise 17%.

Total orders rose 33%. GE said five of its six businesses achieved double-digit earnings growth.

“I thought it was a solid quarter, but I think the best thing about the quarter was the new orders,” said Mary Anne Sudol, an industrial analyst at Caris & Co. in New York. “That’s where the future is.”

GE reaffirmed that it expects earnings per share of $1.94 to $2.02 this year, up 13% to 17%. Analysts expect $1.99.

Some analysts asked whether GE would raise its forecast at the lower end, but Immelt noted it was early in the year.

Shares of GE fell 57 cents, or 1.6%, to $33.89. The stock has traded between $32.21 and $37.34 over the last year.

“I think some people were disappointed they left the guidance unchanged,” Sudol said.

The results of the energy business were disappointing but the overall results were an improvement from the prior quarter, said Brian Langenberg, managing director of Foresight Research in Oak Park, Ill.

GE’s energy business had profit of $436 million, down 24% from $577 million a year ago. Company officials said the energy business did worse than expected because of investments in new products and the timing of deliveries, but said they expected the business to achieve double-digit profit growth for the year.

NBC Universal had a profit of $654 million, down 8% from a year ago.