GE's Earnings Increased 16% In 4th Quarter --- Revenue Climbed by 4.5%; 1989 Operating Margin Rose to a Record 11.3%
FAIRFIELD, Conn. -- General Electric Co. reported a 16% earnings gain for the fourth quarter, continuing its strong double-digit profit performance.</br></br>Net income rose to $1.17 billion, or $1.30 a share, from $1.01 billion, or $1.12 a share. Revenue rose 4.5% to $16.2 billion from $15.5 billion.</br></br>John F. Welch Jr., chairman, said the year's operating margin was a record 11.3% of sales, reflecting continued productivity improvements and revenue gains. He said virtually all businesses contributed to higher earnings while full-year results were "particularly good" in financial services, plastics and medical systems. "Despite an unsettled global economic outlook, we believe the company's good performance will continue into 1990 and beyond."</br></br>The company declined to elaborate on fourth-quarter results, although it did say that "while short-cycle orders slowed somewhat during the last half of 1989, GE's longer-cycle businesses were very strong." A spokesman said the rate of order growth slowed in plastics, apparently reflecting the automotive slowdown, and also slowed in major appliances.</br></br>For the year, GE Financial Services profit rose 18% "on another excellent performance" by GE Capital Corp. The company didn't release separate results at its Kidder Peabody Group Inc. brokerage unit.