General Electric's third-quarter profit missed Wall Street estimates by a wide margin and the company slashed its earnings forecast, sending its stock down. Fred Katayama reports.
General Electric's third-quarter profit dropped and missed Wall Street estimates by a wide margin. The company also slashed its earnings forecast. That sent the year's worst-performing Dow stock further down. Behind the profit decline - weak performance in GE's power and oil and gas businesses, goodwill impairment and higher-than-expected restructuring costs. Reuters correspondent Al Scott is covering the story. (SOUNDBITE) ALWYN SCOTT, CORRESPONDENT, REUTERS (ENGLISH) SAYING: "They misjudged the market, and thought that they would sell al ot more than they did and they had a lot of cost in there that they didn't take out so that was the primary reason for missing on the quarter and cutting their full-year forecast." In June, General Electric named John Flannery its new chief executive. He took over from longtime leader Jeff Immelt. Immelt reshaped GE to focus more on technology but failed to deliver profit growth fast enough for some investors. Flannery is due to reveal his restructuring plan and reset financial targets on November 13th.