FT reported that General Electric underlined the depth of the global financial crisis announcing its worst quarter in five years and slashing full year forecasts.

The news, described as shocking by a senior GE executive, combined with data showing that US consumer confidence was at a 26 year low to send shares lower.

Shares in GE, which derives more than half its revenues overseas and is seen as a bellwether of the global economy led the way, falling 12.8%, its biggest loss since the 1987 stock market crash.

The results are a blow to Mr Jeffrey Immelt chairman & CEO of GE and could increase pressure for action at the group’s underperforming financial and healthcare divisions.

GE executives apologized for reporting the first fall in quarterly profits since 2003, but said their strategy was sound. Mr Keith Sherin CFO of GE told the Financial Times that “The miss is shocking relative to our performance. But we are not going to change our strategy because of a one time miss.”

Mr Immelt presented an upbeat outlook less than a month ago, saying on a webcast that GE would increase earnings at least 10% this year. GE said on Friday its profits would grow no more than 5%in 2008.

Fielding hostile questions from analysts, Mr Immelt said the collapse of Bear Stearns days after the webcast and subsequent market turmoil prevented GE selling real estate. The group was also forced to take a USD 270 million writedown on stocks, loans and securitised assets.