Incoming CEO Jeffrey Immelt has plenty to worry about--even without having to integrate Honeywell
BOOM TIMES END
Although GE's (GE ) two most profitable businesses--turbine manufacturing and aircraft engines--remain strong, demand may be peaking.
Profits are flat or falling in plastics, appliances, broadcasting, and industrial products. Without the turbine-manufacturing unit, GE's industrial-business profits actually fell 1% in the first quarter.
GE Capital now makes up nearly 50% of revenues, with far more leverage and fewer hard assets than GE's industrial units. That's got investors and bondholders worried.
Data: Company reports, Merrill Lynch