General Electric Co’s 4Q income fell short of market expectations, due to decreased sales of devices and Europe’s worsening economy. However, their is prediction of growth of double-digit profit during this year because of cuts in cost all over Europe and expanding in growing economies, mainly in its medical care division.
Income decreased by 7.9% from $41.23 billion to $37.97 billion against market expectation of $40.03 billion.
Apart from European weakness, sales of devices were down, with business and home solutions department which markets them.
Sales of General Electric Co’s energy department that produces items varying from machines used in oil exploration to turbines grew by 19% during the quarter under review, marginally down the company’s expectations because some of the deliveries were moved from the fourth quarter into 2012.
The conglomerate is expecting a positive outlook in spite of some challenged markets such as appliances and Europe.
The revenue fall worried investors, resulting in decline in General Electric Company shares price down to $19.13. During the fall of 2007, GE shares of General Electric Company topped $40.50. Today’s price is lesser than half of that price.