Tuesday, May 10, 2005

The Good and the Bad

The bad
GE has restated its earnings going back to 2001. They ‘misapplied’ an accounting rule. It so happens that although this misapplication did not really impact annual profits, it did smooth out quarterly earnings and made them come closer to analysts’ estimates.

The good
GE is doubling its research budget for environmentally friendly technologies. By 2012 it is also aiming to improve its energy efficiency by 30% and reduce its greenhouse gas emissions by 1%. (Yes, 1% is not much, but it’s something.) And, most importantly, it will report publicly every year on its progress.

No comments: