2nd quarter profits rise at GE Transportation

   July 19, 2013 7:08 am    0

 

GE Transportation, Erie County’s largest employer, continued to pull its weight in the second quarter of this year, posting a profit of $313 million, up 11 percent from the second quarter of 2012.

Results from the quarter that ended June 30 mark a continuation of strong profits in the first quarter. According to numbers reported this morning as part of the General Electric Co.’s overall earnings report, GE Transportation earned a profit of $580 million through the first six months of 2013.

That’s 13 percent of last year’s record-setting pace.

“Wow, said Scott Duke, president of Local 506 of the United Electrical, Radio and Machine Workers, which last month wrapped up more than two months of unsuccessful bargaining with the company over a plan to eliminate 950 union jobs at the Erie plant.

The union and the company were unable to reach an agreement over cost-cutting plans that would have kept more than 400 of those jobs in Erie in exchange for a wage freeze and establishing a two-tier wage system for new employees.

Duke said this morning that the company’s record profits weaken its argument that cost-cutting measures are needed.

“It’s frustrating,” he said.

Duke said he continues to hope that rising orders will prompt the company to rethink its plan.

“I am glad they are making money and hoping that orders are going to pick up,” he said.

While profits were strong, revenues for the quarter were up just slightly, climbing 2 percent to $1.59 billion.

Meanwhile, GE Transportation’s parent company, Connecticut-based General Electric, saw net earnings climb 1 percent to $3.1 billion.

GE Transportation is often regarded as a tiny piece of a much larger company, but during the second quarter it accounted for fully 10 percent of General Electric’s quarterly profit

 

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