The diversified company, often seen as an economic bellwether, managed to meet lowered expectations for its profits.

Net income for the fourth quarter fell 44 percent to 3.72 billion dollars and earnings for the full year 2008 dropped 22 percent to 17.41 billion, which the company said was the third best year in GE history.

GE, which makes aircraft engines, energy equipment and owns the NBC Universal media group, said a major drag on earnings was its financial arm. Profits in the segment fell 67 percent in the fourth quarter and 29 percent for 2008.

Chairman and chief executive Jeff Immelt offered a grim assessment of economic conditions looking forward.

"We expect 2009 to be extremely difficult," Immelt said. "However, we have taken strong actions to prepare the company, including strengthening cash flow and liquidity; managing costs; taking restructuring charges; intensifying risk mitigation; accelerating cycle of management reviews; and protecting revenue."

Overall GE revenues fell five percent in the quarter to 46.2 billion dollars and rose six percent for 2008 to 182.5 billion dollars.

The profits amounted to 37 cents per share in the fourth quarter and 1.79 dollars for the year, in line with analyst expectations.

Immelt said GE, one of the world's biggest companies, would strive to maintain its top AAA credit rating and continue its dividend payments.

"We run the company to have a Triple-A credit rating, and we have significantly strengthened our liquidity position," Immelt said.

"We have positioned GE to perform through this cycle and return to double-digit growth in a post-recession economy."

GE shares slumped 6.73 percent to 12.57 dollars in morning trade.

"While GE's report was generally in-line, it is clear the company was wounded by the financial crisis," said analysts at Briefing.com.

"Provision for losses on financing receivables rose to 3.0 billion dollars from 1.3 billion in the same period last year."

Douglas McIntyre at 24/7 Wall Street said the results were disappointing and that the company could have trouble keeping its top credit rating.

"GE's real trouble is that too many of its divisions fell apart at the same time last quarter," he said.

"Its largest division, technology infrastructure, grew only one percent in both revenue and operating income. It capital and finance and commercial and industrial units each lost 17 percent of their revenue compared to the same quarter last year."

GE's latest reorganization left the company with four major business segments as it moved to divest its consumer and appliance division, which makes lightbulbs and refrigerators and is the historical portion of the company.

The energy division saw operating profit rise 11 percent to 2.0 billion dollars in the quarter as revenues grew 21 percent.

The technology infrastructure division managed a one percent rise in operating earnings to 2.5 billion dollars on a one percent revenue increase to 12.6 billion.

NBC Universal suffered a six percent drop in profit in the quarter to 865 million dollars and revenues fell three percent to 4.4 billion.

GE Capital, which includes financial services including commercial finance and GE Money consumer finance, saw profits slump 67 percent to 1.03 billion and revenues drop 17 percent to 14.8 billion.

Immelt said that the finance arm has been hit by writedowns and other problems but has fared better than most financial firms.

"We have a differentiated financial services model and should earn approximately five billion dollars in (2009) Capital Finance earnings," he said.

"This continues to be our operating framework for 2009. We will keep the company safe and secure in these challenging times, but we will continue to invest in future growth. We are building a strong foundation for 2010 and beyond."

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