GE Q2 profits up 12%
General Electric said second-quarter profit rose 12% on sales of power-plant turbines,jet engines and loans
By TNN |
BOSTON: General Electric said second-quarter profit rose 12% on sales of power-plant turbines, jet engines and loans outside the US. GE doubled its stock buyback programme to $14 billion, with $12 billion to be repurchased by the end of the year, the company said Friday. Profit from continuing operations climbed to $5.4 billion, from $4.8 billion a year earlier.
Revenue increased 12% to $42.3 billion. Sales at General Electric’s infrastructure segment led results as countries with expanding economies including India, China and Saudi Arabia invested in power plants, airports and railroads. GE said it will sell WMC Mortgage, its subprime lending unit, after divesting $3.7 billion of its loans in the second quarter, leaving it with more than $1 billion in loans.
The move comes as more than 60 mortgage companies have halted operations, gone bankrupt or sought buyers since the start of 2006, according to data. CEO Immelt is selling the subprime mortgage unit after a surge in defaults by borrowers.
Revenue increased 12% to $42.3 billion. Sales at General Electric’s infrastructure segment led results as countries with expanding economies including India, China and Saudi Arabia invested in power plants, airports and railroads. GE said it will sell WMC Mortgage, its subprime lending unit, after divesting $3.7 billion of its loans in the second quarter, leaving it with more than $1 billion in loans.
The move comes as more than 60 mortgage companies have halted operations, gone bankrupt or sought buyers since the start of 2006, according to data. CEO Immelt is selling the subprime mortgage unit after a surge in defaults by borrowers.
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