GE meets profit targets despite soft economy

NEW YORK (AFP) - American conglomerate General Electric delivered a fourth-quarter and full-year 2007 profit in line with most forecasts despite a US economy that appears to be faltering, the company said Friday.

The diversified company, sometimes seen as a microcosm of the US economy, said fourth-quarter profits rose four percent to 6.7 billion dollars, bringing 2007 earnings to 22.2 billion.

The profit, excluding special items, was in line with Wall Street estimates at 68 cents per share for the conglomerate that produces jet engines, locomotives, water treatment plants and medical equipment, has a major finance arm and controls the media-entertainment giant NBC Universal.

Revenues rose 18 percent to 48.6 billion dollars in the October-December quarter.

"We have built the company to outperform in this environment," GE chairman and chief executive Jeff Immelt said.

"We have strengthened the portfolio for growth, restructured to lower our cost, maintained our Triple A credit rating and stayed true to our risk management principles," he said.

"Our record performance in such a tough environment validates the strength of our strategy and the talent of our team."

GE's Infrastructure division, which makes jet engines, locomotives and oil and gas equipment, led the company with 26 percent profit growth in the fourth quarter.

NBC Universal, which owns Universal Studios and the NBC television properties, was the second best performing unit with 10 percent profit growth, after struggling in recent years.

"Film had its best year ever, with strong global growth," Immelt said. "Entertainment and information cable had record ratings and solid earnings growth. The network continues to improve its programming and cost position."

The GE industrial division, which produces appliances and lightbulbs, saw its profit rise seven percent. GE recently announced a restructuring of that unit that resulted in the loss of 1,400 jobs worldwide.

GE's finance arm produced a surprising seven percent gain in profits despite troubles in the banking and finance sector. GE Money provides banking and credit services to consumers, retailers, auto dealers and mortgage lenders in some 50 countries.

"Our financial services businesses performed well in an extremely volatile market," Immelt said.

Only GE's health care division, which makes medical imaging equipment, underperformed with a four percent decline in earnings.