GE under pressure all round

General Electric joined the list of US giants that have beaten market expectations this week, even though second-quarter earnings and revenue fell sharply. The US industrial bellwether's second quarter net income slumped 47% to $2.9bn, or 26c per share, from $5.4bn, or 54c a share. Revenue at the company fell 17% to $39.1bn from $46.8bn a year earlier, worse than forecasts. GE's capital finance unit posted the worst figures with a 29% drop in revenue and an 80% plunge in earnings. Only its energy infrastructure unit reported a gain in earnings, of 13%. "In a global economic environment that continues to remain challenging, GE delivered solid second-quarter business results," said GE Chairman and CEO Jeff Immelt in the earnings statement. "We continue to position GE to win in a reset economy." Problems at GE Capital caused the company to lose its AAA corporate debt rating in March, and led to a dividend cut. The finance arm raised its reserves to $6.6bn from $5.7bn in the first quarter to cover anticipated increases in lending losses. "In a difficult environment, we are ahead of schedule on our plan to create a more focused financial services company," said Immelt.