GE CEO: Spinoff Of GE Capital 'Unthinkable'

General Electric expects "very high" write-offs at its GE Capital this year, but spinning off the finance arm is an "unthinkable" option, Chief Executive Jeff Immelt said in an interview published by the ArabianBusiness.com website.

"Our assets are shrinking, and I would say the write-offs will be very high this year. We are in a very, tough commercial cycle," Immelt said, according to the report.

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"The biggest job we have right now is convincing investors that there is no black box, that there are no substantial issues...," the website quoted Immelt as saying. "And those are the things that we are going to do."

GE plans to meet with investors on Thursday to discuss its GE Capital unit in greater depth. Fears about whether that division has set aside adequate reserves to cover rising write-offs have contributed to a 36 percent fall in the U.S. conglomerate's stock since Jan 1.

While reiterating that GE has ceased to give specific profit forecasts, Immelt said the company would "probably" earn more than $10 billion in 2009. The company last year reported $17.4 billion in net income.

The website quoted Immelt as saying the company would cut its outstanding commercial paper to $50 billion by the end of the quarter.

Immelt was in the Middle East on Monday to announce an agreement to work with the Qatar Foundation to develop new health-care technologies.

The interview comes as shares of GE rebound. The shares jumped more than 5 percent to trade above $10 for the first time since Feb. 19.

Earlier Monday, UBS removed the short-term sell rating from GE shares. 

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