Ge Among World’s Most Profitable

General Electric Co. reported record financial earnings last year, making it one of the most profitable companies in the world, according to analysts.

The Fairfield, Conn.-based company reported Thursday that it earned a profit of $7.38 billion on sales of $79.17 billion in 1996, up 12 percent from a profit of $6.57 billion on $70.02 billion in 1995.

“The year’s double-digit increases again demonstrate the ability of GE’s diverse mix of leading global businesses to deliver top-line growth, increased margins and strong cash generation,” said GE Chairman John F. Welch.

Revenues increased at nine of GE’s 12 businesses, led by double-digit growth at GE Capital Services, NBC and Schenectady-based Power Systems. The company did not provide a precise breakdown of each unit’s performance. Power Systems and four other divisions also reported a double-digit increase in operating profit.

“We are very pleased by the performance of Power Systems overall,” said GE spokeswoman Janice A. Smith. “The dramatic improvement is driven by growth of (Italian) Nuovo Pignone.”

But Smith cautioned the division’s equipment business - steam and gas turbines and generators - continues to face intense competitive pressures and high costs.

Despite the performance, GE’s stock fell Thursday, closing at $101.50 on the New York Stock Exchange. Earnings for the quarter were $2.07 billion, or $1.26 per share, matching the expected average estimate of 15 analysts surveyed by a Wall Street research firm.

GE directors have voted to increase the company’s dividends by 13 percent. The board also recommended a 2-1 stock split.

GE is the Albany area’s largest private-sector employer, with more than 9,000 workers at various plants in the region.