GE reports small rise in quarter profits

General Electric today reported a small rise in quarterly profit as strength in industrial orders and its health-care business…

General Electric today reported a small rise in quarterly profit as strength in industrial orders and its health-care business offset deal-related costs and weakness in the energy business.

"This is the best economy we've seen in years," GE chairman and chief Mr Jeff Immelt said in a statement.

Shares of GE, which is seen as an economic barometer because of its diverse businesses that range from jet engines to entertainment assets, rose to $32.15 on the INET electronic brokerage, up from a close of $31.70 on the New York Stock Exchange yesterday.

The conglomerate, whose businesses also include financial services, appliances and medical devices, posted net earnings of $3.92 billion, or 38 cents a share, in the second quarter.

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That compared with $3.79 billion, or 38 cents a share, a year earlier. GE had forecast earnings of 37 cents a share.

Revenue rose 11 per cent to $37 billion, beating analysts' expectations of $35.59 billion.

The recent acquisitions of British medical maker Amersham and 80 per cent of Vivendi Universal, owner of Universal Studios, theme parks, and cable networks, boosted revenue for the period.

"Orders continue to be strong, growing at 13 per cent, with services orders up 29 per cent," Mr Immelt said.