GE Reiterates Profit to Meet Forecasts
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General Electric Co. said it will meet second-quarter profit forecasts as a $358-million tax settlement tempers losses at its insurance unit and from WorldCom Inc. bonds.
Third-quarter profit will rise by “solid double digits,” Chief Financial Officer Keith Sherin said. For the second quarter, earnings should match the 44-cent average estimate of analysts, with sales up 3% to 5%, Sherin said.
GE plans to write down $110 million in losses on WorldCom bonds, and expects a loss of $240 million at its Employers Re insurance unit on adjustments from policies written across its business areas.
That will be cushioned by a settlement with the Internal Revenue Service of $358 million in the quarter, Sherin said.
Shares of General Electric, based in Fairfield, Conn., rose 40 cents to $29.90 on the New York Stock Exchange.
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