General Electric Company (NYSE:GE) Q1 2016 Earnings Conference Call Transcript
Apr 22, 2016 • 08:30 am ET
Good day, ladies and gentlemen, and welcome to the General Electric First Quarter 2016 earnings conference call. At this time all participants are in a listen-only mode. My name is Ellen, and I will be your conference coordinator today. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the program over to your host for today's conference, Matt Cribbins, VP of Investor Communications. Please proceed.
Good morning and thanks for joining our first quarter 2016 webcast. I'm here with our Chairman and CEO, Jeff Immelt; our CFO, Jeff Bornstein; and our VP, Gas Power Systems, Joe Mastrangelo. Earlier today we posted a press release, presentation and supplemental on our investor website at www.ge.com/investor. As a reminder, elements of this presentation are forward-looking and are based on our best view of the world and our businesses as we see them today. As described in our SEC filings and on our website those elements can change as the rule changes.
Now with that, I'd like to turn it over to Jeff Immelt.
Thanks, Matt. GE had a good performance in a slow growth environment. EPS of $0.21 was up 5%. This includes $0.02 of headwind through foreign exchange. Let me summarize some of the key achievements in the quarter. Industrial organic revenue was down slightly and operating profit was about flat despite a very challenging environment in oil and gas and tough comparisons in gas turbine shipments. This is in line with our expectations. Industrial margins grew by 30 basis points, up 110 basis points ex FX and CFOA was $7.9 billion, a good start in the year. We're on track to close Appliances in the second quarter and this will facilitate incremental restructuring and capital allocation optionality.
We continue to execute our GE Capital strategy. We have $166 billion of capital deals signed. GE Capital sent $7.5 billion dividend to the parent in the quarter and GE Capital filed for SIFI de-designation in March. Alstom integration is on track for a $0.05 goal in 2016. We're more comfortable with the business and our ability to create value. We returned $8.3 billion to investors in dividend and buyback and our capital allocation framework remains on track.
Importantly, we are reaffirming our 2016 framework goal of $1.45 to $1.55 EPS, 2% to 4% organic growth, COFA of $29 billion to $32 billion and $26 billion of cash for investors. Our performance in the quarter again validates the strength of the GE operating model. Diversity is a key strength during this period of volatility. We're in the midst of a challenging oil and gas market. However, we are seeing sustained strength in aviation and power markets, healthcare is rebounding. I was in China last week and saw improvements in our business. Most of the portfolio was strong and we are delivering. There is plenty of business out there to achieve our goals.
Orders were up slightly in the quarter, down organically and pricing was flat. We ended the