WASHINGTON — General Electric affirmed its 2008 outlook Tuesday but did not provide any specific earnings- per-share targets for next year and said it will drop its practice of giving quarterly earnings forecasts.
The industrial conglomerate, which makes products as diverse as light bulbs and jet engines, has been battered this year by the financial crisis and problems with its financing arm, GE Capital. The decision to stop providing specific earnings guidance comes after the company struggled this year to meet its own forecasts.
GE also said it plans to continue paying a dividend next year, offering investors 31 cents per share each quarter.
Company shares rose 6.3 percent, up $1.08 in late trading Tuesday.
Chief executive Jeff Immelt told investors at a meeting in New York that there has been a “broad systems failure in the economy” and that the company expects the tough economic conditions to extend into next year.
GE said it still expects earnings of between $1.78 and $1.84 per share in 2008 and 50 cents to 52 cents per share in the fourth quarter. Analysts surveyed by Thomson Reuters expect earnings of $1.90 per share this year and 47 cents per share in the fourth quarter.
The company said it will now provide full-year operating “frameworks” instead of specific guidance. Next year, earnings growth on the industrial side is expected to range from zero to 5 percent.
GE Capital is forecast to make $5 billion next year, down from the $9 billion in earnings expected this year.
Analysts predict that GE will earn $1.50 per share in 2009 on sales of $183.4 billion.
