General Electric has reported a rise in third quarter profits of 14 percent. The numbers were affected both by losses in the subprime mortgage sector, and by gains from the sale of GEâ€™s plastics division. WNPRâ€™s Harriet Jones reports.
The Fairfield based conglomerate posted earnings of five point five billion dollars, or 54 cents per share. That compares with nine point nine billion or 47 cents per share, in last yearâ€™s third quarter. The results included a one-point-eight billion dollar boost from the sale of GE Plastics to Saudi Basic Industries. But that was offset by losses of one point four billion dollars in the sale of sub prime mortgage holdings, and by a 600 million dollar restructuring charge. The results were in line with analystsâ€™ expectations, and GE also reaffirmed its previous profits forecast for the full year. CEO Jeff Immelt said he was happy with a solid performance from GE despite extreme volatility in the financial services market. In a separate filing with the Securities and Exchange Commission, the conglomerate said its review of previously reported revenue has resulted in a total of 262 million dollars being shaved from results from 2003 to 2006.