GE posts 16 pct profit gain

[July 16, 2010]  FAIRFIELD, Conn. (AP) -- General Electric Co. says its second-quarter net income rose 16 percent, the first time since late 2007 that the conglomerate has posted a higher profit.

Revenue fell 4 percent, but GE was able to cut costs by nearly $3 billion.

GE had net income of $3.1 billion, or 28 cents per share. That was up from $2.7 billion, or 25 cents per share, a year earlier. That beat analyst estimates of 27 cents per share.

GE makes everything from refrigerators to power plant equipment, and is also a major lender to companies. It is considered a bellwether of the broader economy.

GE says that orders are improving in its industrial unit. Its GE Capital financial division also turned in a profit after recent big losses.

[Associated Press]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.