GE reveals earnings restatement

GE says its business outlook remains robust

US manufacturing giant General Electric is to restate its earnings from 2001 through to the first quarter of 2005.

GE said an internal audit revealed its accounting for some currency and interest rate derivatives had failed to comply with accounting standards.

GE, which is one of the world's biggest companies, said the restatement would lower its first-quarter earnings for 2005 by $78m (£41m).

However, GE raised its second-quarter earnings outlook.

'Disappointed'

The company said the planned sale of its medical liability insurance firm Medical Protective to Berkshire Hathaway-owned National Indemnity would account for much of the projected second-quarter earnings rise.

Overall, GE said the restatement would result in a $381m non-cash increase for the period through to 2001.

GE chief executive Jeff Immelt said he was "disappointed by the restatement, but the GE business outlook is unaffected and it remains robust".

GE's interests range from aircraft engines and power generation to financial services, medical imaging, TV programmes and plastics.