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 ...
As long as the media continues to lead with the negative sizzle the consumer confidence will “continue to plunge”.
“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.
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.
Thanks for the Pinch Hit!
GE like GM is a dinosaur and deserves a wake up call. It also owns MSNBC - left wing propaganda outlet.
No problem...I wouldn’t want some moron managing my investments who thinks a 6% drop in quarterly profit means recession doomsday.
...”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........
GM and Ford are basically finance companies that happen to manufacture/assemble some of the product they finance.
“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. ;)
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.
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.
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.
GE is everywhere doing everything. Unfortunately it is also in some financial business which would be weak this quarter.
“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.
“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.
GE was down 5 to 32. That’s not sane, but would bear watching in case someone needs a buying opportunity later this year.
Jeffrey Immelt should have been shown the door a long time ago
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.
To quote David Letterman: “GE Sucks!!!!”
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