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GE’s Q4 Profit Falls

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General ElectricShares of General Electric Company (NYSE: GE), the largest U.S. conglomerate, are falling in early trading today after the Fairfield, Connecticut-based company reported a decline in its fourth-quarter earnings.

GE’s fourth-quarter earnings fell 18%, reflecting the weak profit growth at its industrial businesses and the sale of a majority stake in NBC Universal last year. The company’s revenue for the quarter also fell, however, CEO Jeff Immelt said that the company remained well positioned to deliver double-digit earnings’ growth for its industrial and financial businesses in 2012 despite challenged conditions in Europe and a faltering performance by the health care and home appliance units.


For the fourth quarter of 2011, GE reported operating earnings of $4.1 billion, or $0.39 per share, representing an increase of 6% and 11%, respectively, over the same period in 2010. The company’s revenue for the fourth quarter of 2011 was $38 billion, compared with $41.23 billion reported for the same period in 2010. Excluding the impact of NBC Universal, the company’s revenue for the quarter rose 3.6%.

GE posted a profit of $3.73 billion, or $0.35 per share for the quarter.

Analysts surveyed by Thomson Reuters were expecting GE to report a profit of $0.38 per share and revenue of $40.03 billion.

Immelt said that the company expects continued volatility in 2012 and have prepared for it by investing in new products and technology, expanding growth market footprint and taking important steps to strengthen risk management. Immelt noted that GE Capital is safe and secure and rebounding sharply and the company is restructuring its businesses in Europe to reflect market conditions.

GE shares fell to a low of $18.88 in early trading today, and at last check, the stock was down 0.68% to $19.02 on volume of 3.10 million.

GE shares have gained 2.44% in the last one year.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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