Bantering with attendees at General Electric Co.”™s annual meeting in Erie, Pa., an upbeat CEO Jeffrey Immelt spoke the words many investors wanted to hear after the company”™s first quarter results hit them like a freight train.
“We”™re going to have to earn it back,” Immelt said as he introduced himself to one group, captured on video posted on GoErie.com. “Believe me ”“ I got hit, too.”
At the annual meeting, Immelt reportedly told attendees he plans to cut $3 billion in costs this year from the Fairfield-based company”™s balance sheet, $1 billion more than last year.
Analysts have questioned GE”™s exposure to the credit markets through its GE Commercial Finance and GE Money divisions.
“We will continue to trim our exposure to the most volatile pieces of this industry, but we have a great financial service business that drives high returns and outperforms the competition,” Immelt said in his prepared remarks to attendees.
It was the first time GE had held an annual meeting in Erie since 1990, when the company”™s revenue totaled $40 billion for the year. The company has since more than quadrupled its revenue, and has 5,100 employees in Erie.
Immelt addressed investors against the backdrop of the company”™s new Evolution hybrid locomotive it expects to begin delivering next year.
“What we are is a great company that had a tough quarter,” Immelt said. “It is important to separate this quarter from t he underlying strengths of the company.”
