As General Electric Co begins shrinking its struggling GE Capital finance arm next year, due to the ongoing credit crisis, the company said on Tuesday that it expected its fourth-quarter profit to be at the low end of its previous guidance. It also warned that charges for restructuring and other items were likely to top $1.4 billion after taxes.

GE said it expected its fourth-quarter earnings to be 50 to 52 cents a share, excluding potential one-time charges, compared with an earlier range of 50 to 65 cents. According to Reuters, the average estimate among analysts had been about 51 cents a share.

Some of the steps GE outlined Tuesday had already been announced, like its plans to reduce the leverage ratio at GE Capital to six to one.

The company said that it expects 2009 to be a difficult year for GE Capital, and it has laid out plans to reduce the finance unit’s exposure to the turbulent debt markets as it restructures next year. Indeed, despite access to multiple federal aid programs and a $3 billion investment from Warren E. Buffett, the diversified industrial, finance and media conglomerate’s GE Capital financial unit continued to be tossed by the storms in the markets.

Keith Sherin, GE Chief Financial Officer, said the company is also weighing job cuts in both its financial and industrial divisions as part of cost-cutting measures. Talking of the restructuring efforts during a conference call with Wall Street analysts, Sherin said: “This will really help us position for a tough 2009.” The investors have cheered the commitment by GE to shore up GE Capital.