GE Says Profit Fell, Citing Finance; Forecast Reduced |
| Bloomberg - Apr 11, 2008 |
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.
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- Posted: 2008-04-11 08:43:39
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