GE Plunges 13%, Renewing Speculation of NBC Sale

April 11 (Bloomberg) — General Electric Co. slumped the most in more than two decades after profit unexpectedly fell and Chief Executive Officer Jeffrey Immelt cut the company’s annual forecast just a month after pledging to meet it.

GE declined 13 percent in New York trading, wiping out about $47 billion in market value and sending U.S. and European stock markets lower.   Immelt slashed the company’s 2008 forecast of $2.42 a share, a goal he said in December was “in the bag” and repeated on March 13.

The profit miss shook investors and analysts, who grilled Immelt about GE’s ability to shield itself from the crisis in financial markets he blamed for the lower earnings. Analysts at Goldman Sachs Group Inc., Credit Suisse Group, Deutsche Bank AG and Citigroup Inc. cut their ratings on the shares…..

From Marketwatch’s Jon Friedman:

NEW YORK (MarketWatch) — To followers of General Electric Co., the NBC television network has always resembled a shirttail sticking out of a tuxedo. It doesn’t fit the picture.

Now, with GE (GE: 32.05, -4.70, -12.8%) reporting abysmal earnings — net income fell 5.8% on weakness in the financial-services businesses — discouraged investors will demand that the conglomerate do something serious to win back their confidence.  GE must show it can act decisively.

That’s why I think GE will begin seeking offers for its stake in NBC Universal.  It would fetch billions of dollars at a time when GE could use the dough — and the faith of skeptical shareholders. GE’s stock plunged more than 10%, a definite sign that the company is on shakier ground now than it has been since former Chief Executive Jack Welch, departed several years ago…..