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GE woes another signal of slowing economy
reuters ^ | Fri Apr 11, 2008 1:30pm EDT | unknown

Posted on 04/11/2008 12:20:52 PM PDT by rocksblues

NEW YORK (Reuters) - Disappointing first-quarter earnings from General Electric Co (GE.N: Quote, Profile, Research) and a drop in U.S. consumer confidence to its lowest in more than a quarter century in early April provided the latest signs the U.S. economy may be in a recession.

General Electric, the second-largest U.S. company by market capitalization, on Friday posted an unexpected 6 percent drop in first-quarter profit.

Profit at its financial services arm, which accounted for more than a third of GE's total revenue in the quarter, fell about 20 percent -- the biggest shock yet to American industry from the credit crisis. Weakness in health care and industrial divisions also weighed on results.

"It's confirmation that we're in a recession," Jerome Heppelmann, portfolio manager at Liberty Ridge Capital in Berwyn, Pennsylvania, said of GE's results.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Extended News; Miscellaneous; News/Current Events
KEYWORDS: finace; laggingindicator; recession
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We are doomed, doomed I say!
1 posted on 04/11/2008 12:20:52 PM PDT by rocksblues
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To: rocksblues
The sensationalism in the media makes you want to puke. Of course the financial group took the biggest hit.

As long as the media continues to lead with the negative sizzle the consumer confidence will “continue to plunge”.

2 posted on 04/11/2008 12:25:40 PM PDT by misterrob (Obama-Does America Need Another Jimmy Carter?)
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To: rocksblues

“General Electric, the second-largest U.S. company by market capitalization, on Friday posted an unexpected 6 percent drop in first-quarter profit.

Profit at its financial services arm, which accounted for more than a third of GE’s total revenue in the quarter, fell about 20 percent — the biggest shock yet to American industry from the credit crisis. Weakness in health care and industrial divisions also weighed on results.

“It’s confirmation that we’re in a recession,” Jerome Heppelmann, portfolio manager at Liberty Ridge Capital in Berwyn, Pennsylvania, said of GE’s results.”

But they still showed a profit, right? Not sure how one can correlate that into a recession since companies have routinely have slower earnings even during the good times.


3 posted on 04/11/2008 12:26:04 PM PDT by Slapshot68
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To: rocksblues

I wonder if this has anything to do with the behavior of the commie propaganda outlets NBC and MSNBC? They must be a drag on GE’s bottom line. Maybe GE will have to start listening to viewer complaints.


4 posted on 04/11/2008 12:26:42 PM PDT by ozzymandus
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To: Slapshot68

Thanks for the Pinch Hit!


5 posted on 04/11/2008 12:27:44 PM PDT by rocksblues (Folks we are in trouble, "Mark Levin" 03/26/08)
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To: rocksblues

GE like GM is a dinosaur and deserves a wake up call. It also owns MSNBC - left wing propaganda outlet.


6 posted on 04/11/2008 12:29:10 PM PDT by eleni121 (EN TOUTO NIKA!! +)
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To: rocksblues

No problem...I wouldn’t want some moron managing my investments who thinks a 6% drop in quarterly profit means recession doomsday.


7 posted on 04/11/2008 12:29:12 PM PDT by Slapshot68
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To: rocksblues

...”Profit at its financial services arm, which accounted for more than a third of GE’s total revenue in the quarter, fell about 20 percent -...”

Darn, I thought GE was a technology company. Silly me. Wonder why we aren’t making things any more. Oh, forgot, law schools, journalism schools, political science schools, global warming schools........


8 posted on 04/11/2008 12:29:48 PM PDT by Da Coyote
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To: Da Coyote

GM and Ford are basically finance companies that happen to manufacture/assemble some of the product they finance.


9 posted on 04/11/2008 12:33:21 PM PDT by GourmetDan (Eccl 10:2 - The heart of the wise inclines to the right, but the heart of the fool to the left.)
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To: GourmetDan

“GM and Ford are basically finance companies that happen to manufacture/assemble some of the product they finance.”

I think GM sold a majority stake in it’s GMAC arm so they could get some cash infusion to invest in...get this...making better cars. ;)


10 posted on 04/11/2008 12:34:40 PM PDT by Slapshot68
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To: ozzymandus

If anyobdy bothered to look most of GE’s units did very well with the exception of Finance and Healthcare.

Finance for the obvious, and healthcare due to increased service costs.


11 posted on 04/11/2008 12:37:37 PM PDT by Ouderkirk (Hillary = Senator Incitatus, Clintigula's whore...er, horse.)
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To: ozzymandus

Don’t forget the doom and gloomers at CNBC, who have been beating the drums for recession for at least two years. GE is their parent company, and hopefully, will put them and the entire NBC network on the auction block. Perhaps Rupert Murdock would buy them.


12 posted on 04/11/2008 12:38:25 PM PDT by kittymyrib
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To: Slapshot68
I think GM sold a majority stake in it’s GMAC arm so they could get some cash infusion to invest in...get this...making better cars.

They've actually been making a great deal of progress on the product front, the new Chevy Malibu, Pontiac G8, Buick Enclave, GMC Acadia, and Cadillac CTS, all excellent products that have been selling well, but future sales are potentially another matter, what with the slowdown in auto sales.

13 posted on 04/11/2008 12:41:25 PM PDT by RegulatorCountry
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To: eleni121

GE is everywhere doing everything. Unfortunately it is also in some financial business which would be weak this quarter.


14 posted on 04/11/2008 12:44:04 PM PDT by RightWhale (Repeal the Law of the Excluded Middle)
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To: RegulatorCountry

“They’ve actually been making a great deal of progress on the product front, the new Chevy Malibu, Pontiac G8, Buick Enclave, GMC Acadia, and Cadillac CTS”

Agreed, those are nice and have been received well by the automotive media.


15 posted on 04/11/2008 12:44:11 PM PDT by Slapshot68
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To: RightWhale

“GE is everywhere doing everything. Unfortunately it is also in some financial business which would be weak this quarter.”

Exactly. They’re more of a conglomerate and with all conglomerates, some units will be more profitable than others even in the best of times.

This just another doom and gloom MSM story.


16 posted on 04/11/2008 12:45:37 PM PDT by Slapshot68
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To: Slapshot68

GE was down 5 to 32. That’s not sane, but would bear watching in case someone needs a buying opportunity later this year.


17 posted on 04/11/2008 12:45:38 PM PDT by RightWhale (Repeal the Law of the Excluded Middle)
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To: Slapshot68

Jeffrey Immelt should have been shown the door a long time ago


18 posted on 04/11/2008 12:46:00 PM PDT by right turn at the light
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To: ozzymandus

I looked for some information about the msnbc/nbc effect on the bottom line, but there was no information in the article. They are usually the worst performing units.


19 posted on 04/11/2008 12:47:16 PM PDT by Boston Tea Party
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To: rocksblues

To quote David Letterman: “GE Sucks!!!!”


20 posted on 04/11/2008 12:47:55 PM PDT by gunservative
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