GE Net Income Rises 8% on Growth in Nine Units; Revenue Climbs 10%

General Electric Co., the world’s largest company by market value, said Thursday that first-quarter profit rose 8%, helped by acquisitions in healthcare and consumer finance and orders for industrial goods like plastics and jet-engine parts.

Net income climbed to $3.2 billion, or 32 cents a share, from $3 billion, or 30 cents, a year earlier, General Electric said. The Fairfield, Conn.-based company expects 2004 net income of $1.54 to $1.60 a share, the high end of its forecast range.

“This is the first solid quarter for GE in three years,” said Brian James of Loomis Sayles, which owns more than 4 million General Electric shares. “No smoke, no mirrors, few securitizations, less real estate gains.”

Nine of 11 main businesses had quarterly profit increases of at least 10% as accelerating U.S. economic growth helped revenue from plastics and servicing of engines. Chief Executive Jeffrey Immelt, 48, has said costs to integrate $30 billion in purchases will mean little profit growth this year.

General Electric’s net income growth hasn’t exceeded 10% since 2000, hurt by falling orders for turbines and engines and higher costs for oil and chemicals used to make plastic. Sales in the first quarter rose nearly 10% to $33.4 billion, as orders in industrial businesses rose 20%.

“It’s really the broadest growth we’ve seen since the first half of 2000,” Immelt said on a call with investors. “We’re really creating a faster-growth industrial company and a more capital-efficient finance company. 2004 is going as planned.”

In addition, the company Thursday closed the $10.3-billion purchase of medical-equipment maker Amersham, its biggest acquisition. The purchase of Vivendi Universal’s media assets and the sale of 30% of Genworth insurance will close in May, Immelt said.

GE narrowed its 2004 profit forecast before transaction costs to $1.59 to $1.65 a share, from $1.55 to $1.65, compared with $1.55 in 2003. With the 5-cent impact of Amersham, Vivendi and Genworth, it expects net income of $1.54 to $1.60.

Shares of General Electric rose 1 cent to $31.41 on the New York Stock Exchange. They have risen 12% in the last year.

The company’s biggest sales growth was a 30% jump at consumer finance, which includes credit cards. The unit’s profit rose 10%, helped by acquisitions in France and Singapore.