Buy GE, sell America

18 January 2008 By John Christy

General Electric’s robust results vindicate boss Jeff Immelt’s reshuffling of the conglomerate’s portfolio. Its financial arm will continue to suffer, but its tripleA credit rating and fat global infrastructure order book leave it much better off than its peers.

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General Electric reported fourthquarter earnings of 68 cents per share from continuing operations, 17% higher than the same period a year ago. Revenue rose 18% and the company reaffirmed its outlook for at least 10% earnings per share growth in 2008.

At General Electric's annual outlook meeting on December 11, chief executive Jeffrey Immelt noted that GE has "no exposure to collateralized debt obligations or structured investment vehicles."

The company also raised its dividend 11% and announced a $15bn share buyback plan.

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