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Power, aviation boost GE despite weak oil
[NEW YORK] Strong results in power and aviation boosted General Electric's second-quarter results, despite an economy characterized by volatility and slow growth, the company said Friday.
Net income was US$2.7 billion, compared with a loss of US$1.4 billion in the year-ago period.
Revenues rose 14.6 per cent to US$33.5 billion.
Performance among GE's industrial divisions varied, with oil and gas experiencing big declines in revenues and operating profit due to the rout in oil prices.
Those declines were offset by gains in some other GE divisions, such as aviation and power. GE's earnings are heavily dependent on the industrial economy after it divested some US$180 billion in financial assets over the last year to shed a government classification as a "too big to fail" institution.
"The diversity and scale of our portfolio enabled the company to perform well despite a volatile and slow growth economy," said chief executive Jeff Immelt.
"We expect strong organic growth in the second half of the year and reaffirm our 2016 operating framework." Shares fell 0.1 per cent at US$32.55 during pre-market trade.