GE Sales Rise, Earnings Drop In 2Q

July 11, 2008 10:40 a.m. EST

New York, NY (AHN) - General Electric Co. reported earnings for the second quarter, which were more than it had earlier expected, the company said on Friday.

GE's first quarter profits had unexpectedly declined, due to the weak market conditions and global financial turmoil, led by its financial services business unit.

A Dow Jones industrial average component, GE had reported net income drop to $4.3 billion compared to its $4.6 billion income during the first quarter of 2007.

On Friday, GE posted revenue growth in the second quarter from continuing operations up by 11 percent to $46.9 billion, more than it was expected by market analysts.

Earnings from continuing operations declined by 3.9 percent or 54 cents a share to $5.4 billion compared to $5.6 billion a year earlier.

The Fairfield, CT-based conglomerate's has also agreed to sell its Japanese consumer finance business division, GE Money, which includes the Lake personal loan business, to the mid-size Japanese bank Shinshei Bank for $5.4 billion.

"This transaction would allow us to re-deploy our resources to faster growth and higher return opportunities," GE Chief Executive Jeffrey Immelt said in a statement released on Friday.

Shares of the world's biggest maker of power-plant turbines, jet engines and medical-imaging equipment gained by 1.3 percent or 37 cents to $28.01 at 10:18 a.m. Eastern on the New York Stock Exchange.