Marketplace has a new podcast for kids, "Million Bazillion!" EPISODE OUT NOW

GE’s earnings are both good and bad

Ashley Milne-Tyte Oct 16, 2009
HTML EMBED:
COPY

GE’s earnings are both good and bad

Ashley Milne-Tyte Oct 16, 2009
HTML EMBED:
COPY

TEXT OF STORY

GE reports third-quarter earnings this morning. The company’s expected to make a profit, though earnings are likely to be down over the same time last year. GE is a complicated blend of businesses, and that means some parts of it are doing better than others, as Ashley Milne-Tyte reports.


Ashley Milne-Tyte: GE is really a few companies rolled into one. Analysts are worried about GE Capital, its finance unit. For one thing it holds a lot of subprime mortgages — in the U.K., rather than the U.S.

Morningstar analyst Daniel Holland says that’s not all. He says GE Capital does normal bank stuff, like lending money to other companies.

Daniel Holland: Or to um, help out with financing inventories, leasing jet aircraft, things like that.

And like other banks, it’s taken a big hit during the recession. On the other hand, even though demand for heavy equipment has fallen…

Holland: Their gas-turbine business is doing really well. They’re in the top, you know, in the top two or so of wind-turbine manufacturers, and they stand to benefit.

GE stands to get billions in stimulus money for its green technologies within a few years. And Holland says the company’s industrial side should prosper in the next decade.

I’m Ashley Milne-Tyte for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.