GE quarterly profit slides 18% to $3.73 bn

US conglomerate General Electric saw its profit plunge 18% to $3.73 billion in the fourth quarter ended December as revenues slumped by slow growth in Europe.

However, the company saw strong growth in the emerging markets including India.

GE's net earnings stood at $3.73 billion on revenues of $37.97 billion in the 2011 December quarter.

In the year-ago period, the industrial major raked in a net profit of $4.54 billion on revenues of $41.23 billion.

"Industrial emerging market revenues were up 25%, driven by double-digit growth in Brazil, Russia, China, India and the ASEAN region. Revenues were negatively impacted by lower Ending Net Investment [ENI] at GE Capital, FX and slower growth in Europe," GE said in a statement today.

GE Chairman and CEO Jeff Immelt said that volatility is expected to continue in 2012.

The company is prepared for it by investing in new products and technology, expanding our growth market footprint and taking important steps to strengthen risk management, Immelt noted.

GE Capital's fourth-quarter profit rose $1.6 billion, higher by 58% as compared to year-ago period.

According to Immelt, GE Capital is safe and secure and rebounding sharply. "We are restructuring our businesses in Europe to reflect market conditions," he added.

For the entire year, GE posted a profit of $14.51 billion on revenues of $147.3 billion.

At the end of 2011, GE had cash and cash equivalents worth $85 billion.

"We finish 2011 with momentum and are positioned for a strong 2012. Our Industrial businesses are positioned for growth...," Immelt said.