In GE's (NYSE: GE) annual report, CEO Jeff Immelt plans to state, once again, that the conglomerate will not sell NBC Universal, the company's entertainment arm. There have been rumors of a sale for the last two years.
"Should we sell NBCU? The answer is no!" Mr. Immelt writes in a message for investors in G.E.'s 2007 annual report, according to The New York Times.
The statement is likely to disappoint GE investors. According to the company's 10-K, NBC Universal revenue dropped last year to $15.4 billion from $16.2 billion the year before. Operating profit moved up about 7% to $3.1 billion. These results trailed the performance of GE's large infrastructure and finance businesses.
GE now trades near its 52-week low. With its balance sheet and international prospects, the stock should be doing much better. But the company has to auction off its under-performers if the shares are going to gain ground.
Douglas A. McIntyre is an editor at 247wallst.com.