GE Offers Tepid '08 View

General Electric (GE Quote) disappointed Wall Street Tuesday with a weaker-than-expected earnings forecast for next year.

The industrial bellwether and Dow component projected "at least" a 10% increase in EPS for 2008. That fell short of expectations on Wall Street for roughly 13% growth, based on the average estimates reported by Thomson First Call.

Despite the disappointment, GE held itself out as a safe haven for investors as the economic outlook grows more dim.

The multinational blue-chip stalwart reaffirmed its earnings forecast for the year, authorized a new $15 billion share buyback and lifted its dividend, continuing its annual tradition of boosting its payout.

The company said its performance will come amid organic revenue growth at three times the rate of U.S. economic growth, expanding margins and returns, a higher tax rate, accelerating global growth and industrial earnings that outpace financial services.

"This commitment reflects a slowing U.S. economy," said GE in a press release. "We want to give our investors safe and reliable earnings growth as the economy evolves."

For the fourth quarter, GE reiterated its earlier guidance for earnings of 67 cents to 69 cents a share, reflecting year-over-year growth of 14% to 18%. That was in line with expectations on Wall Street.

For 2007, it still expects earnings of $2.19 to $2.21 a share, up 18% to 19% from last year and in line with analysts' average forecast.