Overseas strength helps GE profit rise 4%

FAIRFIELD, Conn. -- Industrial, financial and media conglomerate General Electric ge said Friday its fourth-quarter profit rose 4% on strong global demand, and it reaffirmed its outlook for 2008.

For the quarter ended Dec. 31, net income rose to $6.7 billion, or 66 cents a share, from $6.44 billion, or 62 cents a share, a year ago. Earnings from continuing operations totaled 68 cents a share, up from 58 cents.

Revenue rose 18% to $48.59 billion.

Profit met the consensus estimate of analysts surveyed by Thomson Financial, while revenue topped Wall Street's outlook of $47.28 billion. GE had forecast a quarterly profit of 67 cents to 69 cents a share.

The company said more than half of its revenue now comes from outside the USA, helping to cushion GE from a possible U.S. recession.

"Clearly foreign operations delivered the bulk of the strength in the quarter, I think that's a seminal event," said Tim Ghriskey, chief investment officer at Solaris Asset Management. "It also indicates there is weakness on the domestic side."

GE's total orders rose 18% to $27 billion and climbed 18% to $98 billion for the year.

"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," said GE Chairman and Chief Executive Jeff Immelt.

GE, which produces transportation equipment, offers financial services and operates television network NBC, said it booked 20% or more profit growth from its energy, aviation, oil and gas, transportation and water segments during the fourth quarter.

The company said its financial services earnings grew 37% globally, as strong risk management helped the business weather volatile market conditions.

Profit at its health care arm was down 4% in the quarter, in part due to a U.S. law changing the way medical equipment is reimbursed.

The company didn't address any effect the Writers Guild of America strike, which began Nov. 5, had on its NBC unit or its film operations.

Looking ahead, GE said it expects to earn at least $2.42 a share from continuing operations in 2008, compared with Wall Street's consensus estimates of $2.43 a share. For the first quarter, the company also backed guidance for profit of 50 cents to 53 cents a share from continuing operations. Wall Street is predicting profit of 51 cents a share.

In a filing with regulators, GE also said it corrected accounting errors related to spare parts in its aviation business. The correction cut its 2002 profit but slightly raised profits for 2003 through 2006. The company said its internal review and a Securities and Exchange Commission investigation are both continuing.