GE issued the following statement today regarding certain previously identified fourth-quarter 2010 items that taken together do not change the company’s strong financial outlook for the fiscal year 2010.
“As we covered in our December 14th presentation to investors, we anticipated a number of specific fourth-quarter items that offset each other.
While we understand that the Federal Communications Commission (FCC) and the Department of Justice (DOJ) continue to make good progress toward approval of the sale of a majority stake in NBCU to Comcast, because of the lead time required, we will not close by year-end 2010. We expect that closing will occur in January 2011. As stated previously, we anticipate recognizing a large pre-tax gain and a small after-tax gain upon closing. We appreciate the intensive efforts of the FCC and DOJ, as well as by our own teams, and look forward to completing the process early in 2011. We look forward to working with our new partners at Comcast after the transaction is completed.
Separately, we recently received a decision from the U.S. Environmental Protection Agency (EPA) regarding proposed phase 2 dredging the Hudson River. GE announced today that it has advised the EPA that it will perform the second and final phase of the Hudson River dredging project. We engaged in intensive and constructive discussions with the EPA, and the decision reflects our discussions and many of our proposals. GE has consistently said it wanted to complete the dredging and now looks forward to doing so under terms that achieve the scientific objectives of dredging in a practical and cost-effective way. We are proud of having met each and every one of our many commitments on this project, and we will continue to do so.
We expect this to resolve future uncertainty regarding Hudson dredging liabilities and to result in an after-tax charge of about $500 million in the fourth quarter. As discussed on December 14, we expect that positive items, including a favorable tax settlement, will offset this charge.
GE expects to have strengthened fourth-quarter performance consistent with our recent communications, including resolution of the Hudson matter.”
GE is a diversified infrastructure, finance and media company taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, health care solutions, and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide.
[mappress]
Source: genewscenter, December 24, 2010