General Electric's chief executive Mr Jeff Immelt has said that earnings growth in 2003 should be bolstered by aggressive cost cutting after the poor economic environment hit the company's power systems and short cycle businesses in the third quarter.
Mr Immelt added he sees continued sluggish growth in the US economy, estimating GDP in 2003 at "about 2%".
He said he sees a dramatic restructuring at power systems, adding that there will be fewer shipment of gas turbines in the fourth quarter and next year.
He was speaking in a conference call after the company released third quarter earnings which saw it meet Wall Street consensus of 41 cents per share, helped by a $317 million gain from the disposal of GE Global Exchange Services.
Growth in the company's power systems unit fell in the third quarter, while the plastics division performance was hit by the weak environment and high oil prices.
Some analysts believe 2003 will be a difficult year for GE as the weak economy stalls recovery at its short-cycle operations - plastics, lighting and industrial products - with Morgan Stanley analysts saying they are concerned that GE "could be walking into the most difficult operating environment it has experienced in at least a couple of decades."