(GuruFocus, October 16, 2009) General Electric reported this morning and it is not that good.
3Q 09 Highlights:
• EPS of $0.22 (down 51%) with $0.05 restructuring and other charges; earnings of $2.5 billion
• Industrial cash flow of $11.5 billion YTD, on pace for greater than $15 billion for full year;
$61 billion consolidated cash and equivalents at quarter-end
• Company revenues of $37.8 billion, down 20%, primarily due to GE Capital reduction, Industrial organic sales decline,
• Total company orders of $18.4 billion, down 18%; equipment orders up $0.7 billion from 2Q ’09;
total backlog of $174 billion, a record high
• Industrial operating profit rate at 16.3%, up 260 bps from 3Q ’08
• Capital Finance earned $263 million in the quarter, $2 billion YTD; reserves increased $0.8 billion; favorable tax credits as expected; on track for profitable ’09
The result fell short of expected, as analyzed in this video clip:
Gurus Owned GE as of 2Q09
Gurus Increased Positions in GE:
Prem Watsa owns 18,312,770 shares , an increase of 79.15% from the previous quarter. This position accounts for 4.11% of the $5.21 billion portfolio of Fairfax Financial Holdings, Inc..
Charles Brandes owns 17,122,132 shares , an increase of 32.69% from the previous quarter. This position accounts for 1.09% of the $18.33 billion portfolio of Brandes Investment.
Mark Hillman owns 1,384,936 shares , an increase of 20.37% from the previous quarter. This position accounts for 4.4% of the $369 million portfolio of Hillman Capital Management.
Gurus Kept Positions in GE Unchanged or Slightly Adjusted:
Dodge & Cox owns 112,731,714 shares , which accounts for 1.98% of the $66.88 billion portfolio of Dodge & Cox.
Ronald Muhlenkamp owns 2,441,080 shares , which accounts for 4.33% of the $660 million portfolio of Muhlenkamp Fund.
Warren Buffett owns 7,777,900 shares , which accounts for 0.19% of the $48.95 billion portfolio of Berkshire Hathaway.
Tom Gayner owns 3,648,384 shares , which accounts for 3.86% of the $1.11 billion portfolio of Markel Gayner Asset Management Corp.
Brian Rogers owns 26,419,100 shares , which accounts for 2.27% of the $13.63 billion portfolio of T Rowe Price Equity Income Fund.
Arnold Van Den Berg owns 2,167,490 shares , which accounts for 1.78% of the $1.43 billion portfolio of Century Management.
Richard Snow owns 4,701,567 shares , which accounts for 2.81% of the $1.96 billion portfolio of Snow Capital Management, L.P..
1 Guru Reduced Positions in GE:
David Dreman owns 2,087,476 shares , a decrease of 80.34% of from the previous quarter. This position accounts for 0.78% of the $3.12 billion portfolio of Dreman Value Management. [b][/b]
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3Q 09 Highlights:
• EPS of $0.22 (down 51%) with $0.05 restructuring and other charges; earnings of $2.5 billion
• Industrial cash flow of $11.5 billion YTD, on pace for greater than $15 billion for full year;
$61 billion consolidated cash and equivalents at quarter-end
• Company revenues of $37.8 billion, down 20%, primarily due to GE Capital reduction, Industrial organic sales decline,
• Total company orders of $18.4 billion, down 18%; equipment orders up $0.7 billion from 2Q ’09;
total backlog of $174 billion, a record high
• Industrial operating profit rate at 16.3%, up 260 bps from 3Q ’08
• Capital Finance earned $263 million in the quarter, $2 billion YTD; reserves increased $0.8 billion; favorable tax credits as expected; on track for profitable ’09
The result fell short of expected, as analyzed in this video clip:
Gurus Owned GE as of 2Q09
Gurus Increased Positions in GE:
Prem Watsa owns 18,312,770 shares , an increase of 79.15% from the previous quarter. This position accounts for 4.11% of the $5.21 billion portfolio of Fairfax Financial Holdings, Inc..
Charles Brandes owns 17,122,132 shares , an increase of 32.69% from the previous quarter. This position accounts for 1.09% of the $18.33 billion portfolio of Brandes Investment.
Mark Hillman owns 1,384,936 shares , an increase of 20.37% from the previous quarter. This position accounts for 4.4% of the $369 million portfolio of Hillman Capital Management.
Gurus Kept Positions in GE Unchanged or Slightly Adjusted:
Dodge & Cox owns 112,731,714 shares , which accounts for 1.98% of the $66.88 billion portfolio of Dodge & Cox.
Ronald Muhlenkamp owns 2,441,080 shares , which accounts for 4.33% of the $660 million portfolio of Muhlenkamp Fund.
Warren Buffett owns 7,777,900 shares , which accounts for 0.19% of the $48.95 billion portfolio of Berkshire Hathaway.
Tom Gayner owns 3,648,384 shares , which accounts for 3.86% of the $1.11 billion portfolio of Markel Gayner Asset Management Corp.
Brian Rogers owns 26,419,100 shares , which accounts for 2.27% of the $13.63 billion portfolio of T Rowe Price Equity Income Fund.
Arnold Van Den Berg owns 2,167,490 shares , which accounts for 1.78% of the $1.43 billion portfolio of Century Management.
Richard Snow owns 4,701,567 shares , which accounts for 2.81% of the $1.96 billion portfolio of Snow Capital Management, L.P..
1 Guru Reduced Positions in GE:
David Dreman owns 2,087,476 shares , a decrease of 80.34% of from the previous quarter. This position accounts for 0.78% of the $3.12 billion portfolio of Dreman Value Management. [b][/b]
Also check out:
