GEÔÇÖs hurt finance unit brings a decrease in profit

General Electric said Friday that its profit declined for the third straight quarter due to lower earnings at its financing arm, GE Capital, during the biggest financial crisis since the Great Depression.┬á GE, a 106-year-old economic leader whose products range from lightbulbs to power-plant turbines, generated higher profit from a strong demand for its electricity-generating turbines and jet engines, and its energy, technology, and NBC Universal businesses. Those earnings have been offset by investor concern that the global credit crunch will erode the companyÔÇÖs finance units. ┬á The US conglomerate reported a 22 percent drop from $5.11 billion to $4.48 billion in third-quarter profit, matching itÔÇÖs recently cut forecast. Although revenue rose from $42.5 billion to $47.2 billion, an 11 percent increase, this has been a tough year for the company known as an economic bellwether because of the size and diversity of its operations. ┬á┬á Investors are concerned whether the worldÔÇÖs largest maker of jet engines and power-plant turbines will see a drop in demand as customers lose access to credit. Investors worry whether GE Capital has adequate resources, as last year more than half of the companyÔÇÖs profit came from its financial arm. ┬á Tim Ghirskey, chief investment officer of Solaris Asset Management said in an interview on Bloomberg television, ÔÇ£GE coming in in-line should give the market some focus again on fundamentals. The devil is in the details and we need to see the details on the balance sheet and transparency on their credit situation.ÔÇØ ┬á Despite investor woes, GE said it would meet its revised profit forecast for 2008.