Financial unit weighs on GE; profit plunges 44 percent
Filed under: Company News, Earnings, General Electric
The continued woes at General Electric's (GE) big financial unit fueled a big drop in its third-quarter earnings, outweighing signs of improvement in its divisions that make heavy machinery and other industrial equipment, the company said Friday.GE posted a 44-percent decline in profit to $2.4 billion, or 23 cents per share, hurt by much lower earnings at its GE Capital arm, which loans money to businesses ranging from credit cards to shopping centers.
GE divisions that build dishwashers, sonogram machines, locomotives and wind turbines posted a modest profit increase.
A year earlier, the Fairfield, Connecticut-based company had earned $4.3 billion, or 43 cents a share.
Despite better industrial results in the latest quarter, GE's overall revenue fell 20 percent to $37.8 billion, a sign that the conglomerate still faces a long road to recovery. CEO Jeffrey Immelt described the current market as a "tough environment."
Shares of the company fell 44 cents, or 2.6 percent, to $16.35 in pre-market trade.
GE is relying on its industrial side to help it build back profits after a devastating recession. But it has struggled to overcome GE Capital's troubles, which include big losses from loans like credit cards, mortgages in the United Kingdom, and commercial real estate. The unit saw its profit fall 87 percent during the quarter.
GE is also reportedly trying to shed NBC Universal through a deal to sell the entertainment division to cable company Comcast Corp.
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Reader Comments (Page 1 of 2)
10-16-2009 @ 8:29AM
MaryLou Michelin said...
Jeff Immelt belongs in the cewll next to Madoff. He is a liar. He and his crooked cronies have put a great company in the gutter.
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10-16-2009 @ 8:40AM
Ibe said...
GE Bank, cut credit lines, jacked interest rates even though never was late, never missed a payment, and credit scores over 700! So, we closed the account, but after receiving an incorrect transaction from Walmart good ole GE Bank put enough creditline back on the card to 'cover' the transaction, even though is was incorrect. So now we are in the process of disputing the charge. How much indirect cost is GE Bank incurring while this process goes on, and on, and on. It is time for this company to crumple and be exhiled to the corners of the world.
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10-16-2009 @ 9:19AM
Mike said...
Ok, so how does "The Street" spin this into an 80 point gain in the DJIA? I'm sure they'll figure out a way. Personally, I'd like to see them TANK...and take NBC with them!!!
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10-16-2009 @ 10:16AM
Greg said...
Yeah, wouldn't we all like to see all these companies tank; all the idiots who were contaminated by the toxic mortgage junk paper, bite the bankruptcy dust; all 300,000 employees unimployed? That'd show 'em!
10-16-2009 @ 10:24AM
JOHN said...
Hey I just spent 20.00 on bulbs yesterday myself !!
Whats happening here ?
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10-16-2009 @ 10:14AM
b.borders said...
If the Board of Directors do not FIRE Immelt, then the stockholders better FIRE the board of Directors.
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10-16-2009 @ 10:14AM
Ben said...
I will continue to Boycott all GE Products and NBC Programs. Somebody else will have to pay Keith Olbermans salary.
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10-16-2009 @ 10:15AM
Grant Ayjian said...
Watching GE go through problems, reminds me of my old company Westinghouse Electric. We thought it could never go bad, but after 22 years I was on the street looking for work.
We had lousy management who was more interested in their planes and bonus's then the company and its employees.
don't be to smug GE, We were up there ourselves and watch a german company buy us.
As is Alstom (french), Westinghouse (german) Mitsubishi bought one of our langer companies also.
Maybe things arent all that great in the great glass topped buildings.
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10-16-2009 @ 10:18AM
ajgorm said...
State , city and Federal services are hitting us hard in 2010 unless another stimulus comes out to cover their balloooned costs left over from the housing era that is now gone for sometime. They need to adjust their pay scale back to what we can afford.
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10-16-2009 @ 10:20AM
fred said...
I know everyone will trash me for this but once they get rid of there CEO and the NBC unit the company will again be a buy. The balnce of their operating units have for the most part good earnings. They need most of all to have a leader that will stear the ship that will return confidence to the market/investers.that earnings sales growth year over year will return.
The board must act immediately.
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10-16-2009 @ 11:54AM
Blade said...
One must remember Obama bailed them out too, so he owns partof GE now. Plust the fact that GE was oneo f his biggest supporters during his campaign. GE is just another mega company that is trying to take over the world along with Obama and the rest of his commie cronnies. They aslo stand to make billions off of the CAP and Trade if it gets passed in the Senate, they are leading the charge on it.
10-16-2009 @ 11:06AM
Paul said...
Why Jack groomed a clown like Jeff Immelt is a mystery. Bring back Jack and I will start to buy GE lightbulbs again. Forget anything else GE. I'd rather buy from China or Japan.
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10-16-2009 @ 10:56AM
tom said...
great there nothing but commies anyway glad to see them and nbc go down the tube.
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10-16-2009 @ 11:13AM
Dave said...
I glad to see everyones think along the same lines.These jerkoffs that are using these fraud numbers on the market should go to jail.But Obama is letting them get away with cause if they show the REAL DJIA IT WOULD BE ABOUT 3000 POINTS less then there showing then we would all know what a failure the bail out was to these big business
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10-16-2009 @ 11:32AM
larryonLI said...
there closing all their light bulb manufacturing plants in the U S,offshore only in the near future.
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10-16-2009 @ 11:55AM
insideshovel said...
Get a grip people. If GE's earnings would have equaled Googles, GE stock would be worth only about 25 cents a share. This proves that the stock market is nothing but a casino.
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10-16-2009 @ 12:31PM
JOE said...
Jeff----take your golden parachute and get out--we cant take any more of your lies--(crushed shareholder)
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10-16-2009 @ 12:56PM
joe said...
Jeff---take your golden parachute and work for another outfit that needs a liar as a pr man----crushed shareholder
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10-16-2009 @ 12:47PM
RJ said...
SURE..................The economy is getting better............SURE it is!
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10-16-2009 @ 1:02PM
Sylvan said...
Yoiu Go Democraps spread the wealth is really working Dell FIRED 900 lawyers in NYC 26,800 FIRED
Seems the democraps rather then support business rather give the money to a single mom of 4 on crack to maintain her votes
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