FAIRFIELD, Conn. – General Electric Co. (GE) reaffirmed its earnings outlook for the third quarter and the full year on Wednesday, saying the company expects to achieve double-digit percentage profit growth despite the impact of Hurricane Katrina.
The Fairfield-based industrial, media and financial-services conglomerate said it still expects earnings per share of 43-44 cents in the third quarter and $1.80 to $1.83 per share for the year.
"We have estimated the losses at GE Insurance Solutions (search) from the storm and its aftermath, and despite this impact, we are confident we will deliver on our commitment to shareholders and are reaffirming our earnings guidance for the third quarter and the year," said Jeff Immelt (search), GE's chief executive, in a prepared statement.
GE officials did not disclose how much the company expected to lose as a result of the hurricane.
Analysts surveyed by Thomson First Call were expecting earnings of 44 cents for the quarter and $1.82 for the year.
GE and its employees have contributed more than $21 million for storm relief, Immelt said.
GE also announced Wednesday that it plans to sell 60 million shares of common stock of Genworth Financial in an underwritten public offering. GE has been spinning off the company as it reduces its insurance business.
GE also plans to sell 21 million Genworth shares to Citigroup Global Markets Inc.
Once those transactions are completed, GE would own about 32 percent of Genworth's common stock.
Shares of GE fell 1 cent to $34.27 Wednesday on the New York Stock Exchange (search). The stock has traded between $32.65 and $37.75 over the past year.
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