General Electric is a global industrial powerhouse. It is also a financial company, and it was that half that unexpectedly dragged down G.E. in the first quarter—an unheard-of setback for a company known for meeting or beating earnings estimates quarter after quarter after quarter.

G.E. said earnings fell 6 percent, chiefly because of the turmoil in the markets in March as Bear Stearns teetered on the brink of collapse. The rare miss stunned investors, driving European markets lower.

"We knew the first quarter was going to be challenging, but the extraordinary disruption in the capital markets in March affected our ability to complete asset sales and resulted in higher mark-to-market losses and impairments," Jeff Immelt, G.E.'s chief executive, said in a statement.

The company also lowered its earnings forecast for the year, pointing to a slowing economy and difficult capital markets.

The miss unnerved investors because G.E. is considered a barometer of the health of the global economy. In January, it reported remarkably strong results at a time when many U.S. companies were showing weak profit growth.

"It's confirmation that we're in a recession," Jerome Heppelmann, a portfolio manager at Liberty Ridge Capital, told Reuters.

The conglomerate, whose businesses range from jet engines to NBC, earned $4.3 billion, or 43 cents per share, down from $4.57 billion, or 44 cents a share. Earnings from continuing operations fell 8 percent, to $4.4 billion, or 44 cents per share, well shy of analysts' estimates. Revenue rose 8 percent, to $42.24 billion.

The bright spot was G.E.'s overseas business, from which it derives more than 50 percent of its revenue. It saw a 38 percent surge in revenue from developing countries, while revenue from developed countries outside the United States climbed 14 percent.

 "Demand for our Global Infrastructure business remained strong, but our financial services businesses were challenged by a slowing U.S. economy and difficult capital markets," Immelt said. "While we are disappointed with our results, the fundamentals of our businesses are strong."

Under Immelt, G.E. has been reducing its financial businesses, shedding riskier ones like WMC Mortgage, but the finance side still makes up nearly half the company.

The consumer and small-business financial unit, G.E. Money, had a 19 percent drop in first-quarter earnings, while the commercial finance business' profit fell 20 percent.