GE operates in five segments: Energy Infrastructure, Technology Infrastructure, NBC Universal, Capital Finance and Consumer & Industrial. GE has strong leadership positions across its global business platforms. Its diversity is unparalleled, customer concentration is negligible, sales are geographically dispersed, and its end markets run the gamut of economic activity. Still, its operations are exposed to varying degrees of cyclicality and price pressures, which has been clearly evident in 2008 and will remain so in 2009.

The company reported 1st qtr 2009 earnings of $0.26 per share on 4/17/09. This beat the $0.21 consensus of the 13 analysts covering the company. Sales fell 9% in the 1st qtr 2009 and profits plunged 35%. Sales and profits were impacted by forex translation effects and financial services business. GE even lost its prized perfect credit rating in March 2009 when Standard & Poor's downgraded it from AAA to AA+. However, the company’s earnings engine remains strong due to its diversity.

For second quarter 2009, analysts’ estimates range from $0.21 to $0.27, with a consensus estimate of $0.24. The quarterly results will be driven by solid performance of 1) Energy Infrastructure, 2) strong industrial aftermarket, 3) GE Capital performance, and 4) cost reduction initiatives.

In April 2009, GE Energy signed a contract for nearly $1 billion to supply more than 30 Frame 7EA gas turbines for the Saudi Electricity Company’s (SEC) Riyadh Power Plant 10 (PP10). The PP10 agreement, which was booked in December 2008, brings GE’s orders for SEC projects to nearly $2.5 billion in the last three years. In the last five years, GE has received commitments to supply 115 gas turbines for SEC projects. The Energy Infrastructure, equipment orders are expected to be around $4.5 billion, and services $4.3 billion.

The large amount of high-margin service and aftermarket sales provides significant earnings support throughout the business cycle. The very profitable customer service agreement backlog is expected to be about $171 billion at the end of 1st qtr 2009. This backlog will generate about $51 billion of revenue - at 30% margins - in 2009.

GE Capital Finance is expected to earn around $1.2 billion in 2nd qtr 2009 and achieve break-even in 2009. In 2nd qtr 2009 GE’s base cost is expected to be $1.2 billion below last year. In addition, the company has funded an additional $400 million restructuring. That's going to help it achieve even greater results throughout 2009.

Currently, the stock is trading at $11.46 way below the 52 week high of $30.39. The stock seems to be fairly over valued at current levels.