GE Capital saw revenue fall 29 percent to $12.8 billion (€9
billion) in the second quarter of 2009, the company reported.
Segment profit was also down, by 80 percent to $590 million, in
Q2.
The Commercial Lending and Leasing (CLL) segment of GE Capital
saw a decrease in profit of 74 percent, to $232 million.
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“The earnings decline [in CLL] was driven by higher credit costs
of about $300 million,” explained Keith Sherin, vice chairman and
CFO at GE Capital.
However, the lessor reported a slight improvement in
delinquencies in equipment finance, from 2.84 percent in the first
quarter to 2.78 percent in the second quarter. But this was largely
due to an improvement in the Americas portfolio, rather than Europe
and Asia, were delinquencies were up quarter-on-quarter.
Despite lower profits, GE Capital remains profitable, and Sherin
said that General Electic was “fully committed” to keeping its
finance arm, which is doing “a really good job”.
Jeff Immelt, chairman and chief executive of GE added: “Our
priority right now is just to make sure that GE Capital is safe and
secure, and that we have the opportunity to play offence in GE
Capital in the second half of the year, and I think we can do
that.”
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By GlobalDataGE also announced that it would give an in-depth look into GE
Capital later this month – check back on the Leasing Life
website after July 29 for a full summary.
Jason T Hesse
