GE was able to increase revenue during the first quarter of 2008, which ended March 31, the company said in a statement April 11. However, steep profit declines in the financial segment led to a loss in profits for the quarter compared to 2007.
The company’s Commercial Finance division pulled in $8.57 billion for the first three months of the year, up 7 percent compared to 2007. GE Money posted a 7 percent increase as well, with $6.4 billion in revenues for the quarter.
Profits for Commercial Finance were down 20 percent for the first quarter, to $1.2 billion. GE Money fared the same, down 19 percent to $995 million in profit.
“Commercial Finance and GE Money remain in good shape and still earned $2.2 billion in a tough market,” said Jeff Immelt, chairman and CEO. “Our balance sheet is strong, portfolio quality is stable and we are originating business at high margins.”
Overall, GE’s revenue was up 10 percent to $41.5 billion. Profits fell 4 percent to $6.3 billion.
“In light of what we have seen in the first quarter, we have revised our earnings outlook for the full year to protect investors by reflecting a slower economy and assuming capital markets remain challenging,” Immelt said.