GE Reports In-Line, Will Fight To Keep AAA

GE, whose shares sit at a level not seen since the mid-90s, reported EPS of $.36, right in line with expectations. Clearly the company has gotten better at guiding analysts to the exact number. Immelt said the company is commited to maintaining its $1.24 in dividend for the year (a yield of about 9% at current levels) as well as its AAA credit rating, and he walked through the efforts being made to repair the balance sheet:

“We generated $16.7 billion of industrial cash flow from operations, up 5%. We ended the year with $48 billion in total cash, after paying down our commercial paper balance to $72 billion from $88 billion at the third quarter. We used $5.5 billion of our equity offering to meet our stated GE Capital debt-to-equity leverage goal of 7:1 by the end of 2008. Through today, we have been able to fund $29 billion of our $45 billion long-term debt needs for 2009.”

Segment revenue grew by varying amounts in the quarter. Infrastructure and media were up 3%, while energy infrastructure, an area that should slow dramatically if prices remaind depressed, was up 11%.

Shares are up a fraction pre market.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In

clusterstock-us ge