News Summary: GE 3Q shows progress

OPERATION SIMPLIFICATION: General Electric reported strong third quarter profits Friday in the midst of its transformation to a simpler company focused on traditional industrial operations. Revenue lagged expectations, however.

THE BOTTOM LINE: GE's net income rose 49 percent in the third quarter to $3.49 billion, or 33 cents per share. On an adjusted basis, GE earned 36 cents per share, in line analysts' expectations and up 13 percent from a year earlier. Revenue rose $1 billion to $36.35 billion, short of the $36.95 billion analysts expected.

OUTLOOK: The company is on track to meet its target of earnings growth of at least 10 percent for the year. Revenue will grow 3 percent, less than the once-forecast 5 percent because GE is shrinking its banking division faster than planned.