1. Appliances - Maytag anounces layoffs and Best Buy big ticket sales slowing. Hmm..., appliances have been great place to be the last few years with housing boom - looks like a slowdown is a coming.
2. GE aircraft engines - sounds like American Airlines wants out of every aircraft deal it can find and there won't be many new ones either. Do bankrupt airlines (Usair, UAL?) buy or lease many planes?
3. Power Systems - we know there is a massive decline coming in gas turbine business. The firm said say and layoffs are about to take affect soon.
4. GE Capital - lots of aircraft leases - ouch. Increasing number of writeoffs of receivables and loans - ouch. The benefit of declining rates that has caused earnings to jump maybe 600 million this year -- no more "growth there". Short term rates hit bottom last September and GE short term borrowing costs won't improve any more year over year and might actually go up in a few months.
5. NBC - that advertising recovery? Will it hold up? Only 6 more months of Friends -- what then -- Kudlow and Cramer (LMAO)
6. Health Products -- at last one business that ain't got problems.
OOPS, I forgot the options have no expense business -- that will contract EPS 2 cents next year.
OOPS, I forget no amortization of goodwill. That boosted Earnings by 100s of millions this year and that "earnings growth" is gone next year too.
OOPS, I forgot the tax scam business. That booste earnings by over $300 million in 2002, that growth is gone and next year lead to a decline (no tax gain next year versus one this year) in reported earnings.
OOPS, I forgot the pension fund business. Assets continue to shrink and assumed interest rate earned on assets continues to fall. More bad comps next year. And pension costs and retirement liabilites keep climbing.