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Droopy feathers among the peacock’s TV stations

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General Electric Co. released its fourth-quarter earnings Friday, and the news was grim from NBC’s local TV stations, historically one of the most reliable generators of cash flow for NBC Universal.

Revenue from the stations tumbled 25% compared with the fourth quarter of 2007, and operating profit dropped a staggering 55%. GE’s overall income plunged 44% to $3.72 billion as the conglomerate’s industrial and finance businesses were hit hard by the recession.

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All local media outlets, including newspapers, TV and radio stations, have fallen on hard times in the last year as their best advertisers -- including car dealerships and retailers -- have struggled to maintain customers and sales.

The financial picture wasn’t as bleak for all of NBC Universal. For the period that ended Dec. 31, the media company generated $4.43 billion in revenue, down 3% from the fourth quarter of 2007. Operating profit came in at $865 million, down 6%.

Saving grace: cable television.

The company benefited by strong results from its cable channels including MSNBC, which saw its revenue up 37% for the election-driven quarter. Overall, revenue from the cable channels, including USA Network and Bravo, was up 11% and profit soared 22% for the quarter.

‘We had continued strong performance in cable, but that was more than offset by the pressure that we are seeing in local markets,’ GE Chief Financial Officer Keith Sherin told analysts in a conference call.

It was a mixed bag for Universal Pictures and the theme parks. Operating profit was down 7% for the division, partly because of higher marketing costs resulting from the release of more films in the period than the year-earlier quarter. Attendance was up 4% for Universal Studios in Los Angeles but down 4% in Orlando. One bright spot: DVD sales were up 20%, buoyed by the blithe musical ‘Mamma Mia!’

But Wall Street wasn’t in a singing mood.

GE’s shares plunged 10.7% after the call, in which executives reiterated how the ‘terrible credit markets’ were hurting their businesses. GE stock closed at $12.03 a share. The industrial and financial giant delivered earnings of $3.65 billion, or 35 cents a share, down from $6.7 billion, or 66 cents a share, a year earlier. Overall revenue slid 5% to $46.2 billion.

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-- Meg James

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