General Electric Suffers 44% Drop in Net Earnings for Fiscal Year 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--On January 23, General Electric Company (NYSE:GE) (GE) (Fairfield, Connecticut) released its earnings report for fourth quarter and fiscal year 2008. Net earnings for the year were down 44%, moving from $6.7 billion in 2007 to $3.72 billion in 2008. The company faced substantial declines in its Capital Finance and Consumer & Industrial segments, while GE's Energy Infrastructure segment grew 26%.

Total segment profit for GE was down 9% for the year, with individual segments performing as follows:

• Technology Infrastructure - profit of $8.5 billion, up 3% from 2007
• Energy Infrastructure - profit of $6.08 billion, up 26% from 2007
• Capital Finance - profit of $8.63 billion, down 29% from last year
• NBC Universal - profit of $3.13 billion, up 1% from last year
• Consumer & Industrial - profit of $365 million, down 65% from 2007

As previously reported by Industrial Info, at the end of GE's third financial quarter, the company's total energy orders were up 18% year over year. Wind power in particular demonstrated tremendous strength with a growth of 90% year over year. For additional information, see article from October 13, 2008 - GE's Energy Sector Brings $1.4 Billion of Profits Despite Overall Earnings Decline.

Industrial Info is tracking more than $1 billion of projects directly owned by GE or its subsidiaries. One of the larger projects is the grassroot construction of the 512-MW natural-gas-fired power plant in Oxford, Connecticut. Construction is tentatively scheduled to begin in mid- to late-2009, but the actual date of construction kickoff will almost certainly depend on the company's financial situation at the time. For more information, see news article from November 24, 2008 - GE Energy Financial Services Plans to Construct 512-Megawatt Towantic Energy Center. Countless other projects use equipment manufactured by GE. Information on this and other projects involving GE can be found at Industrial Info's North American Industrial Database.

The company's Energy Infrastructure segment will almost certainly remain a strong part of GE throughout the current recession. In December, GE signed a $3 billion contract to supply power equipment and services to Iraq. The contract represents one of the largest single contracts ever made by GE. For more information, see December 31, 2008 article - GE Signs $3 Billion Power Generation Agreement with Iraq.

GE is keeping a long-term outlook regarding the company's health and growth. "We have positioned GE to perform through this cycle and return to double-digit growth in a post-recession economy," said Chairman and CEO Jeff Immelt. "We will keep the company safe and secure in these challenging times, but we will continue to invest in future growth. We are building a strong foundation for 2010 and beyond."

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