Updated from 9 a.m. EDT
said its earnings forecasts remain on track, even after factoring in the losses its insurance division could sustain from the destruction Hurricane Katrina caused along the Gulf Coast.
Earnings for the third quarter should be 43 cents to 44 cents a share, the company said in a press release Wednesday. For the full year, GE expects a profit of $1.80 to $1.83, up 12% to 14% from last year.
"We have estimated the losses at GE Insurance Solutions from the storm and its aftermath, and despite this impact, we are confident we will deliver on our commitment to shareholders," GE said. "We continue to see good fundamentals across the rest of our businesses, and our earnings guidance remains consistent with prior expectations."
GE predicted that full-year cash flow from operations will come in at the high end of its previous guidance of $17 billion to $18 billion.
On average, analysts surveyed by Thomson First Call expect GE to earn 44 cents a share in the third quarter and $1.82 for the year. Shares of GE were adding 11 cents at $34.39.
reported that the diversified industrial giant may be preparing to restructure or sell some of its business lines in order to boost shareholder value. The report indicated that household appliances, lighting and plastics could be among the operations covered by the plan.
Additionally, GE is planing to sell 60 million Class A common shares of
, the insurance company that GE spun out last year, in a public offering.
GE also intends to sell 21 million shares to Citigroup Global Markets. A Citigroup affiliate would then offer securities that will be exchangeable for the Genworth shares.
GE, based in Fairfield, Conn., is granting overallotment options for up to roughly 12.2 million shares. The underwriters of the common stock offering will have the opportunity to buy an additional 9 million shares, and Citigroup Global Markets would be allowed to purchase 3.15 million more shares.
After completing the transactions, GE will own around 32% of Genworth's common stock. Genworth, of Richmond, Va., won't receive any proceeds from either share sale.