Friday, July 20, 2012

Locomotive orders aid GE Transportation 2Q

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GE Transportation reported $1.6 billion in second-quarter 2012 revenue, up 27% year-over-year, and a segment profit for the quarter of $282 million, up 58% from $178 million in the second quarter of 2011.

Erie, Pa.-based GE Transportation's fiscal results were released as part of the second-quarter report issued by General Electric Co., based in Fairfield, Conn. The parent company reported second-quarter operating earnings of $4 billion, or 38 cents per share, up 7% and 12%, respectively, over earnings from the same period a year ago.

GE Transportation's orders in the second quarter rose 2% to $1.4 billion, driven by higher locomotive orders in North America, the company said. Orders for 176 locomotives from railroad customers in North America were up 28% from second-quarter 2011.

"The second quarter was a significant one for us," said Lorenzo Simonelli, president and CEO of GE Transportation. "We continued our record of double-digit revenue growth and built on our positioning as a global technology and manufacturing leader. We announced plans to acquire two manufacturers of underground mining equipment, one in North America and one in Australia, to expand our role in the global mining industry. We also plan to double capacity at our high-tech manufacturing plant in Schenectady, N.Y., to produce industrial batteries for the telecoms industry and utility operators worldwide."

Said GE Chairman and CEO Jeff Immelt, "Our strategy to invest in growth markets is paying off, as we achieved orders expansion in growth markets of 14% and revenue growth of 17%. We ended the quarter with a record backlog."

GE Transportation orders for 176 locomotives from railroad customers in North America were up 28% from second-quarter 2011.