My put positions love the sound of this news: General Electric’s quarterly net off 6%; outlook cut.
LONDON (MarketWatch) — General Electric Co. pulled an unpleasant surprise on investors Friday, reporting a 6% drop in first-quarter net profit — largely over trouble in its financial-services businesses — and revising lower its 2008 outlook.
General Electric said net income dropped to $4.3 billion, or 43 cents a share, from profit generated during the first quarter of 2007, while revenue rose 8% to $42.24 billion.
Though GE’s financial-services businesses may be the main culprit, I’m going to go out on a limb and say that the economy is slowing down, people are spending less, and the price of basic materials and commodities are growing. Look out below.
0 Responses to “GE’s Surprise Profit Shortfall”