GE’s earnings miss spooked the market, because it showed that Jack Welch’s strategy of morphing an industrial giant into a finance company was a mistake.
The sharpest drop in segment profit came in the conglomerate’s financial divisions, with commercial finance down 20 percent and GE Money consumer finance down 19 percent. GE’s finance arms make commercial and consumer loans, including financing purchases by corporations and individuals.
The good news is that the industrial assets are big enough that they will be the core of GE’s future. The Green Infrastructure business overseas was up 17%, which syncs up with my post of yesterday.