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10/10/2008 07:35 AM
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GE 3Q Profit Drops As Expected
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GE (NYSE:GE) today released third quarter results under the watchful
eye of nervous--if not panicky--investors. A 22% drop in profits,
matched the lowered forecast the company released just over a week ago,
when it said profits would drop 12% for the year.
Share prices rose in morning trading to $19.64, at the time of this report.
"We are on track to meet our September 25 revised guidance for the full year," CEO Jeff Immelt said in a statement.
GE reported 3Q earnings of $4.31 billion, or $0.43 per share, down from $5.56 billion, or $0.54 cents per share a year ago.
Revenue increased 11.1% to $47.23 billion, driven in part by
strong growth in the sales of its electricity-generating tubines and
other energy infrastructure products.
The company's net profits, as expected, were pushed downward by
a 33% decline at GE Capitol Finance, the company's lending division.
GE shares have lost nearly half their value in 2008.
GE sold $15 billion in shares
a week ago to improve the company's liquidity. The sale included $3
billion to iconic investor Warren Buffett's Berkshire Hathaway Inc
(NYSE:BRK-A).
