General Electric executives have issued a gloomy forecast about the nation’s economic prospects. The conglomerate has cut its own earnings projections.
Fairfield based General Electric has lowered its outlook for third-quarter and full-year earnings, citing the extraordinary conditions in the markets. Chief Financial Officer Keith Sherin.
“We’ve got unprecedented financial market volatility, and if you look at the last three weeks and the events that have happened in the financial markets, you have to agree they’re unprecedented.”
Sherin added the conglomerate doesn’t see much upswing at least in US conditions in 2009. GE aims to shrink its finance arm, GE Capital, which last year accounted for 45 percent of its profits. But CEO Jeff Immelt says he’s confident about the future of the unit.
“There’s always gonna be a place for a very disciplined and well run financial company, which is what GE Capital is. You know through this cycle, where banks, investment banks have written off more than five hundred billion dollars, we haven’t had exposure to any of these things.”
The company is taking steps to bolster its capital and liquidity position, freezing its dividend to shareholders, reining in borrowing and suspending its stock buyback plan.