GE Profit Tanks but Tops Estimates

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WASHINGTON (July 17) - General Electric Co. says its second quarter earnings tumbled 49 percent on the continued woes of its finance unit and ongoing weakness in its big industrial units due to the recession.

But the results surpassed Wall Street expectations and GE said its big GE Capital lending unit should post a profit this year, a possible sign the conglomerate has stabilized itself following financial turmoil earlier this year.

GE, which makes products ranging from microwaves to wind turbines, said Friday its net income was $2.6 billion, or 24 cents per share, after paying preferred dividends. That compared with $5 billion, or 51 cents per share, a year earlier.

It says revenue fell 17 percent to $39.1 billion.

Analysts expected Fairfield, Conn.-based GE to post earnings of 23 cents per share on revenue of $42.16 billion.

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2009-07-14 13:05:29