National Business Digest

NATION

GE expects earnings in fourth quarter to be low

WASHINGTON — General Electric Co. said Tuesday it expects fourth-quarter earnings to be near the low end of its guidance and will take a charge of up to $1.4 billion as it starts to shrink its struggling GE Capital finance arm next year because of the ongoing credit crisis.

The diversified industrial, finance and media conglomerate said it expects 2009 to be a difficult year for GE Capital, which provides a wide range of commercial and consumer loans and has been battered by the global economic downturn. GE laid out plans to reduce the finance unit’s exposure to the turbulent debt markets as it restructures next year.

GE Chief Financial Officer Keith Sherin said the company is also weighing job cuts in both its financial and industrial divisions as part of cost-cutting measures, but did not provide details.

Staples’ 3rd-quarter profit beats Wall Street estimate

CHICAGO — Staples Inc., the world’s largest office supplier, said Tuesday that its third-quarter profit sank 43 percent because of hefty charges from restructuring and the acquisition of European rival Corporate Express.

But excluding the charges, its results — pre-released several weeks ago — still beat Wall Street estimates, despite a dip in retail sales.

For the three months ending Nov. 1, the Framingham, Mass.-based retailer earned $156.7 million, or 22 cents per share, down from $274.5 million, or 38 cents per share, during the same period last year. Excluding items, Staples earned 42 cents, a penny ahead of forecasts of analysts polled by Thomson Reuters.

Associated Press