GE second quarter earnings fall 47 per cent to $2.9 billion

General Electric Corp (GE) today reported second-quarter 2009 earnings from continuing operations (attributable to GE) of $2.9 billion, or $0.26 per common share, down 47 per cent from the same quarter of 2008.

Revenues from continuing operations were $39.1 billion, down 17 per cent year-over-year (down 12 per cent forex adjusted), despite a 46 per cent growth in revenues from its Indian operations.

Cash generated from operating activities totalled $7.1 billion, and total company backlog of equipment and services held about steady at $169 billion.

"In a global economic environment that continues to remain challenging, GE delivered solid second-quarter business results," GE chairman and CEO Jeff Immelt said. "We are executing through the recession by aggressively controlling costs and driving working capital improvements while continuing to invest for future growth. At the same time, we are actively maintaining our backlog, focusing on higher-margin services and continuing to run our financial services business for safety and soundness. We continue to position GE to win in a reset economy," he added.

Orders in high-margin services grew 2 per cent and contractual services backlog reached an all-time high of $122 billion, the company said in a release.

"Our service businesses had positive order and earnings growth in the first half of 2009, and we see this strength carrying over to the second half. Global growth continued to be strong: second-quarter industrial revenues grew 31 per cent in China; 46 per cent in India; and 10 per cent in the Middle East," Immelt said.