Credit Crunch Crushes GE, Market, Immelt

GE plummets 11% after the huge earnings miss (GE). So much for the theory that GE’s finance ops weren’t generally not exposed to the type of exotic asset-backed securites that have gotten big banks like Bear Stearns in trouble. And so much for the theory that Jeff Immelt wouldn’t deal with adversity by blameing everything but himself–just like the usual American CEO.

Profits from continuing operations plunged to $4.36 billion or 44 cents a share, down from $4.93 billion or 48 cents a share a year ago. The consensus was for an EPS of 51 cents. Management also lowered guidance, cutting its forecast for the full fiscal year to between $2.20 and $2.30 a share, down from $2.42.

CEO Jeff Immelt attributed the miss to “market disruptions.” “We knew the first quarter was going to be challenging, but the extraordinary disruption in the capital markets in March affected our ability to complete asset sales and resulted in higher mark-to-market losses and impairments.”

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