At the company’s annual outlook meeting with investors and analysts, GE chief executive Jeff Immelt said, “Clearly, there has been an investment pause in certain industries,” and added, “We’ve definitely seen a slowdown in the fourth quarter.”

In his presentation Immelt said the U.S. conglomerate aims for a long-term earnings contribution from GE Capital of around 30% as it continues its efforts to shrink the finance unit. GE Capital contributed about 32% of GE’s earnings in 2011, and about 35% through the first nine months of 2012.

Immelt noted that GE Capital is expected to finish 2012 with less than $420 billion in ending net investment (ENI), down from $637 billion at its peak in 2007. Immelt indicated that the long-term scale of the business was seen at having an ENI between $300 billion and $400 billion. The finance unit has around $75 billion in non-core assets that are being run off.

GE Capital is expected to generate in excess of $20 billion of cash during the 2013-2015 period and achieve returns of 11% to 14%. In his forecast for 2013, Immelt indicated that GE Capital’s earnings will be at or above 2012 levels with the business driven by mid-market growth with originations at high returns as it continues to rebalance its portfolio to achieve a lower ENI.

To access the PDF of the GE presentation, click here.