GE's Jeff Immelt: "We've Definitely Seen A Slowdown In The Fourth Quarter"

Tyler Durden's picture

In what is likely the fist major under the radar profit warning of the current quarter, GE chief, and Obama Job Tzar, Jeff Immelt warned during GE's annual outlook meeting held earlier in Manhattan that the "economic uncertainty" in the current quarter has resulted in an investment "pause" that has resulted in a slowdown of corporate sales. Put into numbers, GE is now calling for about 8% growth this year, from a 10% forecast barely two months ago. Read: Q4 sales, and thus earnings, are set to be a major disappointment. And while no superstorms were blamed in this particular sales warning, the fiscal cliff did feature prominently. As the WSJ reports, "[Immelt] said ongoing jitters over the so-called "fiscal cliff" of tax increases and government spending cuts contributed to the trend." Then again, it is just as likely that the tapped out US consumer, whose savings rate is tumbling, whose real disposable income is now declining on a year over year basis, and whose real wage growth is decidedly negative, would be tapped out even if Obama and Boehner were not playing constant cat and mouse. But whatever the reason for the slowdown may be, one thing is certain: "Clearly, there has been an investment pause in certain industries," Mr. Immelt said. "We've definitely seen a slowdown in the fourth quarter." Bring on the spin brigade.

From the WSJ:

GE is planning for industrial organic revenue growth—which excludes the impact of acquisitions—of 2% to 6% in 2013.


Mr. Immelt was upbeat overall, saying GE is on track for solid earnings growth, and he also stood by previous targets for expansions in industrial profit margins this year and next. He noted the company has a sizable cash position and is growing in key markets.


Mr. Immelt said the U.S. conglomerate aims for a long-term earnings contribution from GE Capital of around 30% as it continues its efforts to shrink the finance unit. GE Capital contributed about 32% of GE's earnings in 2011, and about 35% through the first nine months of 2012.


"Our strategy really hasn't changed," said Mr. Immelt as he opened the annual investor meeting.




Mr. Immelt said Monday that order flow from China was improving, while Europe and the health-care sector remained headwinds.

More can be found in the complete GE investor presentation attached below, which summarizes the key tailwinds and headwinds as follows:

Full presentation below (link):

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Seasmoke's picture

I hate this fucking POS

I think I need to buy a gun's picture

does it really fuckin matter of this piece of shit bailed out company and one of his piece of shit corporates employee sons just slaughtered 20 babies, maybe he should have spent some more time with his fuckin kid instead of all these thieves,,,,,,fucke em all

ball-and-chain's picture

It helps to have friends in high places.

Jeff is friends with the president.

He can do no wrong.

He is above the law.

Let's all go to his house and piss on his mailbox.

Why not?

surf0766's picture

He believe state communism is better. nuff said

LongSoupLine's picture

Fuck you Immelt, you crony dick sucking piece of shit.




i hope you end up a fucking speed bump in the fucking shit ass GE parking lot.

otto skorzeny's picture

soup-you'd be a fun guy to have a beer with-in all seriousness

otto skorzeny's picture

Jeffy is on here junking everyone tonight. although he seems to be the punching bag on multiple stories tonight on ZH-awesome

Bay of Pigs's picture

Well, this article exposed this worthless cocksucker earlier today on ZH. It's a shame people arent reading these articles anymore around here.

grunk's picture

I'm surprised Immelt's report wasn't in Mandarin. 

Mr Lennon Hendrix's picture

Good thing Bernanke is buying so many bonds from the Private Banking Firms that support GE's toxic derivatives, otherwise GE's market outlook would read: 

"We're Fucked".

Squid Vicious's picture

fuck you immelt... tax avoiding/politician cock sucking scum...

Notarocketscientist's picture

Fuck Jack Welch.  He's an even bigger cocksucker.  I hope that bastard spends his last penny on cancer medicine

Gene Parmesan's picture

I guess the election must be over.

buzzsaw99's picture

big fat welfare case

Kali's picture

Let's see:

1.  Rec'd bailouts as a "bank"

2. Doesn't pay taxes.

3.  Low interest Zirp loans.

4.  Uses international labor arbitrage.

5.  Practices political/regulatory capture to get what it wants.

6. Charges usurous interest rates to consumer credit customers.

How can they fail?


optimator's picture

If things get really tough he can go back to being one of the managers of the New York FED!

Racer's picture

and out of hours futures taking off as usual

tradewithdave's picture

Out with Ecomagination... In with Economachination.

WillyGroper's picture

I love how these vultures devour one another. My house took a power hit & even with a lightning arrestor at the power head, fried my appliances. I made the mistake of replacing them with Whirlpool. As I'm sure most of you know WHP bought everything except Frigidaire & maybe Tappan or Roper, can't remember. I never believed in extended warranties, but for $45, I thought what the heck. The EW was thru GE. They lost their proverbial a$$. Two ice makers for the fridge @ $200 ea. Two motors on the dishwasher. A diode on the dryer. Three calls on the washer. The shocks broke on the washer & I finally said, never again. The only thing that hasn't died is the microwave. GE ate WHP's crap several times over. 

Perish the thought, but should you need a new washing machine, as I did my homework, I got a blast from the past. Speed Queen. Metal gears, not plastic crap. They're considered commercial, so you get by the energy star bullshit that makes have to wash things 3 times. Not quiet, but very much like my old 27 yr old Maytag that never had a service call. Best of all, both the washer & dryer for the price of the POS WHP washer. Nothing good to say about the GE fridge that I had b4.

Screw Immelt & Chainsaw Jack. They are all beginning to eat one another. Banksters next.


stant's picture

thanks for the tip on the washer

WillyGroper's picture

Added plus. Made in the USSA. No digital electronics, mechanical controls with a fill override if necessary.

Here, have a couple of laughs.

stant's picture

thanks for the tip on the washer

otto skorzeny's picture

my parents built a house 4 years ago w/all GE stuff-it's all been replaced

Dr. Gonzo's picture

20 year old Maytag Washer and Dryer still kicking ass. Should go another 20. 

otto skorzeny's picture

companies just don't make durable shit anymore- and the more HiEfficiency it is the faster it craps out

batterycharged's picture

Whirlpool and Electrolux used to be made in the midwest.

The CEO of electrolux said to former Micihigan Governor Jennifer Granholm "none of your tax incentives can make up the $2/hr for a Mexican worker".


Then there was the time Michigan couldn't stop Canada from dumping garbage in Michigan, because NAFTA laws trumped the will of the people in Michigan.

Now you get what you pay for....

LongSoupLine's picture

My buddy got a GE model. 3 fucking things on it didn't work right out of the fucking box.

AssFire's picture

That SOB just wants the information data services contract for the Obamacare cash grab program.


Like anything he ever said anti-Obama ever meant anything other than reverse this BS Fiscal Cliff...Oh, No please don't throw me in that briar patch!



Fuck me.

The Gooch's picture

Rhymes with "semen's" resembles that remark, says little birdy.  

Love that font and color scheme!

"Great things to life

MyBrothersKeeper's picture

Not all consumers are tapped out....just the ones working in private sector.  The govt can overpay wages/benefits etc and give raises promised by public unions and who has to pay?  Private sector families.  So while the private sector is trying to figure out how to pay for gas, food, healthcare, and college...the public sector is turning in their car lease to upgrade and planning the next family vacation.  Is it suprising that 73% of job growth the last 5 months is from new government jobs?  The admin etc has to keep somebody pumping up the economy and spending or it's game over.

Seer's picture

"Is it suprising that 73% of job growth the last 5 months is from new government jobs?"

Do you have a reference?  I'm not seeing anything to support that claim: my local municipal govt has been hacking, and other municipal govts I also see hacking.

"The public sector, meanwhile, shed 13,000 government jobs as federal and state agencies continued to cut back. Governments face pressure to cut costs amid concerns of a fiscal cliff and a greater focus on reducing the deficit, says Russell."

"The pace of government layoffs seems to be slowing, said Peter Cappelli, a professor of management at the Wharton School and director of the school’s Center for Human Resources. As the private sector added 103,000 jobs in August, governments cut just 7,000. That is down from 21,000 in July, and well below the average of 16,000 reductions a month since March. Federal employment actually increased by 3,000 in August, to 2.8 million, the first monthly increase since February 2011."

Seer's picture

This might provide more light (has graphs showing all of 2012):

Note, however, this:

"Longer term, however, non-government hiring is back to where it was in the late summer of 2008. State and local government hiring is now similar to the levels seen in late 2008, while federal government hiring remains sharply down."

HD's picture

The police state - job creation at the cost of freedom. Only terrorists need civil liberties.

Dadburnitpa's picture

Maybe.  Douchebag for sure.

Zap Powerz's picture

Dear Mr. Immelt,

Why the fuck do you care about this?  Youre a made man.  Regardless of the destruction your kind causes, you will be fine.  How many more jobs are you going to send to China?  Working hard to not pay taxes you giant fucking douche?!



orangegeek's picture

And this is the warning shot.  Q2 and Q3 were exercises in accounting.  Drive profit by firing and stuff channels for revenue.


January is going to be interesting.


There's a long way to go to March 2009 lows and below.  What a bloody mess we are headed toward.

q99x2's picture

Depending on how much control over the market the FED has (I assume infinite wealth equates to more than a smidgen) the markets may not go down at all over the long term.

Although, my suspicions are, since GS and Tepper are trying to get clients to buy stocks now, that a pretty sizeable correction is near at hand.

azzhatter's picture

dear jeff, take a suck you infintessimal prick. And fuck your shitbag company. and wipe that obama jizz off your chin

lizzy36's picture

And what happens when the fiscal is avoided and nothing changes?

Seer's picture

It does not matter what They (TPTB) do, they have zero control over where we're headed (they can alter time a bit, but the fundamentals that are driving things are pretty much a sealed deal).  Change is guaranteed.

Mr Lennon Hendrix's picture

That's right.

As all eyes and ears are focused on collapsing equities or a collapsing bond market or a collapsing currency market the one thing no one is seeing or hearing is the fact that world has only so much light sweet crude oil in easably accessable areas. 

Excuses are given like, "Natural gas" and "Frcacking" and "Shale" and "Clean coal" and probably even "Solar" (even those those people are watching Circue de Soleai while they plan road trips to Las Vegas).

Yet there is no solution.  No amount of money printing will keep the platue of easy energy from falling, except a drop in demand, but the world needs oil now, and even during a great depression 7 Billion people will need some energy.

Seer's picture

Always glad that there are others out there who understand the REAL picture.  I'm going to miss cheap oil, that's for sure, but because I will I'm not so stupid as to pretend that it ain't going to happen (hoping for some miracle).

Many of the 7 billion people on this planet use very little energy (and for many it's crude shit, literally- like burning cow pies).  People like me, however, are going to feel it pretty good/bad.