GE Says Profit Fell, Citing Finance; Forecast Reduced

[MaineDem]

Source: Bloomberg

April 11 (Bloomberg) -- General Electric Co. reported its first decline in quarterly profit since 2003, missing analyst estimates with a 12 percent drop in earnings as a freeze-up in credit markets blocked asset sales and forced it to write down the value of investments.

The world's third-largest company by market value fell as much as 11 percent, the most since 1987, in early New York trading after GE also cut the full-year forecast that Chief Executive Officer Jeffrey Immelt had once told investors was ``in the bag'' for 2008.

``We hate disappointing investors,'' Immelt said in an interview on the company-owned CNBC television network. ``It's not part of the company. It's not part of the culture. We take accountability for that.''

General Electric's miss came without warning as it was forced to cut the value of some securities in the last two weeks of March as capital markets seized up, Immelt said. That also prevented GE from selling some finance assets. GE put its U.S. credit card business and Japanese consumer finance units up for sale last year. The health-care unit also trailed expectations.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aBgo3dOq7UDU&refer=home

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World markets that are still open dropped on the news. US futures are down.

This is not a good sign.

[Deja Q]

1. The people getting loans for $700k homes while making $15~20/hr were investing too.

Many were naive, some were lazy, some had unfortunate circumstances.

In the end, all this is tragic. I'd rather see more move up than down, though like yo-yos, the stock market is inevitable too.

Save and sit back, it'll get better at some point. People are saying "later in 2008, or in 2009". Maybe it'll be 2010. It's not doom and gloom yet.

[Lost4words]

2. my job left, and folks like you let it happen.

2010 what are you drinking?

8643

[Deja Q]

4. Like me? How? I don't run any companies. Nor did I trip you up at your job, I don't even know you

:eyes:

Please explain your assertion I was involved in you losing yours.

Oh, I also know about offshoring, if that's why you lost it. But you've clearly lost it if you're blaming "people like me", whoever we're supposed to be since you couldn't be bothered...

*sigh*

[Lost4words]

6. Dear HypnoToad, sorry, my error, no offence, I was in no condition

to be near a keyboard. I trully appologize to you for my posting error.

I dont know what else to say except I am sorry..

You are a great DUer, I have read a great many of your posts and replays so I hope you will forgive me.

shamefully

8643 :blush: :hide:

[ckramer]

3. what's good for ge is good for the country

or vice versa...

[ReformedChris]

5. I bet those GE Managers are glad Immelt is there and not Jack Welch

He would have gone Nuetron Jack on them and gone into a demented, screaming, and almost possessed rampage over these "lost" profits. GE got hit hard in the Commercial Finance business and they are trying to get out of the Consumer Finance arena too (look closely at your JC Penney, Wal-Mart, Dillards, Lord and Taylor, or Care Credit Cards: they are all GE-Money cards). It is not a pretty economy right now, even GE-CNBC had to talk negatively of the parent company!