GE Posts 5% Rise in Industrial Profit

Reuters

General Electric Co <GE.N> said on Friday that its quarterly industrial profits rose 5 percent, as stronger performance in its power division offset weak oil segment results, and the company raised its 2015 outlook for its industrial manufacturing businesses.

Profit for GE's manufacturing businesses rose 11 percent, when excluding the effects of currency swings and deals. Investors are focused even more greatly on the conglomerate's industrial businesses as GE backs away from financial services.

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GE posted a second-quarter net loss of $1.36 billion, or 13 cents per share. Results were weighed down by charges related to GE's massive pullback from its financial services businesses announced in April.

Revenue rose 1.5 percent to $32.75 billion.

Sales of GE's power and water unit, which sells a variety of power turbines, rose 8 percent, while its oil and gas segment saw sales drop 15 percent. Like other suppliers to the energy sector, GE is vulnerable to a sharp slide in oil prices as customers reduce capital expenditures.

GE expects industrial operating earnings in a range of $1.13 to $1.20 this year, raising the low end from $1.10.

(Reporting by Lewis Krauskopf in New York; Editing by W Simon)