CNBC has got to go...GE's profits hit by $1.4bn charge
By Mark Odell
01/17/2003 07:40
General Electric on Friday reported a sharp drop in fourth-quarter earnings, hit by a $1.4bn charge at its troubled Employers Reinsurance one of its financial services businesses.
Earnings in the three months to the end of December fell to $3.1bn, or 31 cents per share, a drop of 21 per cent on the same quarter the previous year. Revenues rose 4 per cent to $35.4bn.
Full-year profits, depressed by a further $1bn charge to cover impairment of goodwill earlier in the year, rose 3 per cent to $14.1bn, or $1.41 per share, from $13.7bn, or $1.37 per share in 2001.
The results were in line with expectations after GE lowered its forecasts in November, to reflect the charge to cover losses at Employers Reinsurance.
"GE delivered solid results in a very challenging economy," said Jeff Immelt, GE's chairman and chief executive.
He gave no immediate update on guidance for 2003, having previously indicated a range of $1.55 to $1.70 per share, but more details are expected at a briefing with analysts later on Friday. |
