GE Reaffirms Profit Forecasts for Quarter

General Electric Co. reaffirmed profit forecasts but said it will meet the goal because of gains from a unit sale and a lower tax rate.

Chief Financial Officer Keith Sherin estimated there will be third-quarter losses in GE’s insurance business as well as costs to exit investments in GE Equity and to restructure its power-systems unit.

GE expects to meet its profit estimates of 41 cents a share for the quarter--up from 33 cents a share in the year-ago quarter--and $1.65 for the year. Improvement in more economically sensitive businesses “seems to have stalled,” Sherin said. He declined to give a 2003 forecast for the company.

GE shares fell 61 cents to $26.39 on the NYSE.