New York: General Electric Co (GE.N) (GE.N) expects to record flat profit across its big industrial units next year, as a sluggish global economy crimps sales for jet engines, electric turbines and other heavy equipment.
The largest U.S. conglomerate believes the worst of the financial crisis is behind it and is ready to invest in the core businesses it will retain as it trims back GE Capital and sells a majority stake in its NBC Universal media arm, Chief Executive Jeff Immelt told investors on Tuesday.
"We've positioned the company for solid earnings growth and cash flow growth in the future," Immelt said. "When we look at the near term, it's going to take investment, organic investment, to drive growth."
He described the outlook for GE's industrial arms as "in a word, flat."
That forecast applied across GE's big technology, and energy infrastructure divisions which include equipment and services, as well as its appliance and lighting arm.
The Fairfield, Connecticut-based company is ready for weaker sales of heavy equipment but expects that to be offset in part by growing revenue for repairing and maintaining goods it has already sold.
GE last year stopped giving Wall Street per-share profit forecasts, instead providing a "framework" of how it expects its various units to perform. Last week it told investors it looks for flat 2010 profit at its GE Capital finance arm.
Analysts, on average, have expected 2010 profit of 89 cents per share, compared with forecast earnings for this year of 99 cents per share, according to Thomson Reuters I/B/E/S.
The company expects operating profit at NBC to decline next year due to the high cost of broadcasting the Olympics.
PTI
First Published: Wednesday, December 16, 2009, 10:18