General Electric: driving profits and close the sale of wmc

16 Jul

Posted by flicker as News, USA

The American General Electric in the second quarter of 2007 recorded a profit rise of 10% well, especially on the good performance of the sectors of 'energy and financial services business.
As predicted by analysts, the company Farifield in Connecticut, in the second quarter of 2007 saw their profits rise to 5.4 billion dollars, or 52 cents to share, while 2006 was to 4.9 billion or 48 cents / share. The chairman and CEO of General Electric, Jeff Immelt, has communicated about the overall level of demand for products and services of the company "is increased to unprecedented levels with a significant growth of turnover and profits" good performance of the company has seen an increase in turnover in the quarter reaching to 42.3 billion dollars, an increase of 12% compared with 37.7 billion the previous period, and General Electric decided forecast upward even for the third quarter, estimating their profits between 54 and 56 cents per share, or an increase between 15 and 19% compared to the results of the same period a year ago. GE also has informed its employees of an intention to divest its subsidiary Mortgage wmc, company specializing in the field of subprime mortgages. The chairman and CEO of WMC, Laurent Bossard moved the sale stating inter alia that "the field of mortgages is much changed since the time of 'purchase' and adds that" the current state of the market for subprime loans had a significant negative impact "on the other units of the conglomerate have increased their position. To carry out the task Financial is the choice of Morgan Stanley, has anticipated Bossard. General Electric purchase wmc ² in 2004 and in recent months, ausa the crisis that hit the U.S. market for subprime mortgages is been a thorn in the side of the American colossus. GE also announced that it will launch a buyback program for a value of 12 billion dollars, while a further 12 billion dollars in shares will be repurchased in the second half of 'years.