GE Profit Slips

General Electric said Jan. 20 its net profit slipped 46% from a year ago to $3.06 billion on losses from its insurance unit that the conglomerate is exiting. Profit from continuing operations amounted to $5.772 billion, up slightly from the same period a year ago. But the net results were adjusted for a $2.9 billion loss at GE Insurance Solutions and $200 million in earnings from Genworth Financial, classified as discontinued operations as GE seeks to get out of the insurance business.

Revenues from continuing operations edged up 2.6% from a year ago to $40.7 billion while for the full year 2005, GE's net profit dipped 2.8% to $16.35 billion while revenues rose 11.3% to $149.7 billion.

Looking to 2006, GE chairman and chief executive Jeff Immelt said, "The current economic environment remains positive and is in line with our expectations: we see continued strong growth in Asia and developing markets, mid single-digit growth in the Americas, and slow growth in Europe. This is the kind of environment that plays well to GE's products and services strengths."