GE stock reaches lowest point since 2003

Shares of General Electric Co. fell to their lowest point in more than four years Monday when an analyst downgraded the company’s shares and predicted a challenging environment for its business operations. Shares fell to $28.46 Monday before rebounding slightly to $28.60, a drop of nearly 2% for the industrial conglomerate, which makes jet engines, […]

Shares of General Electric Co. fell to their lowest point in more than four years Monday when an analyst downgraded the company’s shares and predicted a challenging environment for its business operations.

Shares fell to $28.46 Monday before rebounding slightly to $28.60, a drop of nearly 2% for the industrial conglomerate, which makes jet engines, railway locomotives, water treatment plants, household appliances and owns NBC television. Shares were at their lowest since Nov. 17, 2003, when the company’s stock traded at $27.67.

The drop came as JPMorgan’s C. Stephen Tusa Jr. cut GE to “neutral” from “overweight” in a note to investors. He predicted difficulties for GE’s operations, particularly slower sales for its aviation unit amid capacity cuts at U.S. airlines. He also predicted lower income from GE’s real estate operations on challenges in the real estate market.

In addition, the analyst saw difficulties for NBC Universal on weaker advertising sales, while its industrial segment could also see slower sales.

Still, Tusa said the company continues to have attractive assets and talented management that could move the company forward if it were restructured properly.

A phone call placed to GE seeking comment was not returned.

Tusa lowered his 2009 earnings outlook to $2.30 per share from $2.42. Analysts polled by Thomson Financial expect earnings of $2.44 per share.

In April, GE shocked analysts with a 6% drop in first-quarter earnings to $4.3 billion. GE lowered its outlook for earnings in April from $2.42 to between $2.20 and $2.30 per share.

Last month, GE announced plans to sell or spin off its appliance business as part of a plan to exit slower growth and more volatile businesses. The company has already sold its insurance, plastics and other businesses.

Media Articles

30 Under 30 is back with a new name, new outlook

No more age limit! The New Establishment brings 30 Under 30 in a new direction, starting with media professionals.

As Prime Minister, Kellie Leitch would scrap CBC

Tory leadership hopefuls are outlining their views on national broadcaster's future

‘Your Morning’ embarks on first travel partnership

Sponsored giveaway supported by social posts directed at female-skewing audience

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Netflix debates contributions with Canadian Heritage

Netflix remains wary of regulation as some tout 'Anne' and 'Alias Grace' partnerships

Canadians warm up to social commerce

PayPal and Ipsos research shows "Shop Now" buttons are gaining traction

Online ad exchange AppNexus cuts off Breitbart

Popular online ad exchange bans site for violating hate speech policy

Robert Jenkyn is back at Media Experts

Former Microsoft and Globe and Mail exec returns to the agency world

2016 Media Innovation Awards: The complete winners list

All the winning agencies from media's biggest night out!