News Column

GE Transportation sees drop in revenue, profit

July 19, 2014

By David Bruce, Erie Times-News, Pa.



July 19--GE Transportation saw a double-digit decline in both revenue and operating profit during the second quarter of 2014.

The General Electric Co. division, which operates its largest facility in Lawrence Park Township, reported revenue of $1.3 billion and an operating profit of $270 million for the quarter. Compared with the second quarter of 2013, revenue is off 18 percent, and segment profit is down 14 percent.

"We are operating in an extremely competitive, global environment, and we continued to see industry softness," Russell Stokes, GE Transportation chief executive, said in a statement.

The declines were due to lower volumes in mining and locomotives, Stokes said.

The report comes as GE Transportation's parent company, based in Fairfield, Conn., reported a net income increase of 13 percent in the second quarter on strong performance from its aviation, oil and gas divisions.

The company said orders, especially those in developing countries, were strong, and the global economic environment is positive.

Stokes said GE Transportation had positive developments in the second quarter.

"We met most of our second-quarter targets, and we achieved significant wins, including our Singapore Land Transfer Authority signaling deal valued at ($125 million) and our first Tier 4 order," Stokes said.

Tier 4 orders involve locomotives designed to meet government Tier 4 emissions standards.

Stokes also said orders were up 35 percent in the second quarter, due to an increase in locomotive units and service orders.

GE Transportation spokeswoman Jennifer Erickson said employment was flat in the second quarter at about 4,500 employees. About 70 of the 377 workers laid off in late 2013 have been called back to work.

Scott Duke, president of Local 506 of the United Electrical, Radio and Machine Workers of America, could not be reached for comment.

DAVID BRUCE can be reached at 870-1736 or by e-mail. Follow him on Twitter at twitter.com/ETNbruce.

___

(c)2014 the Erie Times-News (Erie, Pa.)

Visit the Erie Times-News (Erie, Pa.) at www.GoErie.com

Distributed by MCT Information Services


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Erie Times-News (PA)


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters