GE Changes Guidance Policy; Reaffirms Targets (GE)
December 16, 2008 by Douglas A. McIntyre
General Electric Co. (NYSE: GE) has reconfirmed its December 2 earnings outlook of $0.50 to $0.52 EPS excluding charges and $0.36 to $0.42 including charges); it still sees full-year 2008 earnings of $1.78 to $1.84 EPS from $185 billion in revenue.
But here is where this gets interesting. GE is eliminating its policy of issuing quarterly guidance and will now provide a framework for annual operating earnings. It will also continue to run the Consumer & Industrial segment as part of its portfolio.
Chairman and CEO Jeff Immelt said, "We expect the difficult marketconditions to continue in 2009…. we are aggressively reducing costsand improving cash generation. In 2009, we have set forth a frameworkof industrial businesses’ earnings growth of 0-5%…"
GE still expects $5 billion in financial segment earnings in 2009. Itwill continue to run C&I business as part of the portfolio, meaningthat those units are now not going to be sold or spun-off in the nearfuture. In this environment of no deals and low liquidity, that shouldhave been expected.
The conglomerate also maintained that $0.31 quarterly dividend.
Jon C. Ogg
December 16, 2008
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.