General Electric (GE) reported a higher-than-expected first-quarter profit on Friday, but organic revenue fell 1%, raising questions about the company’s full-year revenue target.
The industrial conglomerate affirmed its forecast of 2% to 4% growth in annual organic revenue, a figure that excludes foreign exchange and discontinued operations. Some analysts had said the top end of that range appeared difficult to achieve due to sluggish demand for GE’s oil and gas equipment and a weak industrial economy.
“The oil and gas environment is challenging,” CEO Jeff Immelt said in a statement. But GE was “able to offset this with better performance across the portfolio.”
GE said power generation equipment shipments were low in the first quarter but that a pickup in the second half of the year would help it hit the revenue target.
The company reported earnings of 21 cents a share in the latest quarter, exceeding the analysts’ average estimate of 19 cents, according to Thomson Reuters I/B/E/S. GE said it still expected a full-year-profit of $1.45 to $1.55 a share.