GE 3Q Profit Drops As Expected

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).

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