GE (GE) CFO Presents At Conference; Shifted $9.5B Into GE Capital, Reduced GE Capital Leverage to 6:1

General Electric (NYSE: GE) CFO Keith Sherin presented at a Barclays Capital conference today. Shares of GE are down 8.5% today after rising nearly 14% yesterday, its best performance since at least 1980.

Highlights from the conference:
- Shifted $9.5B in capital from the parent company to GE Capital
- GE Capital leverage down to ~6.1 in Q1 from 7:1 in Q4
- Long term debt issuance ahead of plan with $31 billion completed to date
- Substantial cost reductions for Direct Material, Base Cost, Indirect Cost
- GE Capital strengthening liquidity and reducing leverage
- Says company is adequately reserved
- Reserve coverage in-line with peer group... tough to ID direct comparables
- Tough media environment
- Sees ~$16B in total cash generated in 2009.
- GE Capital dividend @10%... ~500MM
- Industrial Net Income @ 0-5%
- Stimulus programs should help
- Run company to be a Triple A, but prepared to operate company at less than a Triple A if necessary
- No decision has been made on possible dividend cut

Link to Presentation

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