Profits drop but shares rise as GE's order book bulks up
General Electric posted a decline in quarterly profit and revenue yesterday on weakness in its finance unit, but its order book rose, sending shares up 2.4pc in early trading.
Overall profit beat expectations by a penny as the conglomerate cut costs and kept orders steady for its turbines and other industrial machinery.
GE said its order book was up 4pc globally and 20pc in the United States, a jump that surprised investors.
"This is as close as GE comes to a positive surprise as possible," said Tim Ghriskey of Solaris Asset Management, which owns GE shares.
GE Capital's revenue fell 3pc from the same period last year, and its earnings dropped 9pc.
GE posted Q2 net income of $3.69bn, or 36 cents per share, for Q2, from $4.01bn, or 38 cents per share, a year earlier. Analysts expected earnings of 35 cents per share. (Reuters)