This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

General Electric Net Drops 44%

Updated from 12:43 p.m. EST

General Electric (GE) shares fell almost 12% Friday, after the conglomerate posted a 44% year-over-year decline in net income.

GE reported fourth-quarter net income of $3.7 billion, or 35 cents a share, which included $1.5 billion of after-tax restructuring and other charges, vs. $6.7 billion, or 66 cents a share, a year earlier.

Earnings from continuing operations in the quarter were $3.9 billion, or 37 cents a share before preferred dividends, down 43% from $6.8 billion last year. Including preferred dividends, GE earned 36 cents a share from continuing operations in the quarter, down from 68 cents a share a year earlier, the company said Friday.

Analysts surveyed by Thomson Reuters expected the industrial conglomerate and component of the Dow Jones Industrial Average to report earnings of 37 cents a share.

Shares fell as much as 11.9%, but closed down 10.8% to $12.03.

The company said segment profit fell 25% in the fourth quarter on a 67% decline at capital finance.


Should GE stay with its plan to pay a dividend of $1.24 a share this year?

Yes. The dividend is safe, and the company can afford it.
The smarter move would be to lower the dividend amount.
No. Eliminate the dividend and preserve funds.

Revenue in the fourth quarter fell 5% to $46.2 billion, reflecting a stronger U.S. dollar, and lower core growth, partially offset by the net effects of acquisitions. GE Capital revenue fell 18%, while industrial sales rose 7% to $31.1 billion.

Stock quotes in this article: GE 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs