Foreign sales boost GE's profits

GE is the second-biggest US firms in terms of market capitalisation

US manufacturer, financial services and media company General Electric has reported a rise in profit as strong global sales offset weaker US demand.

GE said its profit rose 4% to $6.7bn (£3.4bn) in the last three months of 2007, in line with market expectations.

GE said that more than half of its revenue, which rose 18% to $48.6bn in the quarter, now comes from abroad.

The firm, which is the second-biggest in the US, has been cutting costs and focusing on fast-expanding economies.

Among the markets GE has been moving to have been China, India and the Middle East.

"Clearly foreign operations delivered the bulk of the strength in the quarter," said Tim Ghriskey at Solaris Asset Management.

"I think that's a seminal event. It also indicates there is weakness on the domestic side," he added.

"Encouraging"

The company's forecast for the first three months of 2008, and for the whole year also matched Wall Street expectations.

Obviously, this is a company that is seen as a bit of a bellwether and probably has more weight than others Keith Wade, Schroders

Perry Adams at Huntington Private Financial Group believes the most important message in GE results was the fact that the company confirmed the first quarter and full-year guidance for 2008.

Keith Wade, chief economist at Schroders, called GE results "encouraging".

"Obviously, this is a company that is seen as a bit of a bellwether and probably has more weight than others," he said.