US slowdown dents profits at GE

US industrial giant General Electric (GE) has said profits fell 6% in the second quarter of the year as the US economic slowdown continues.

It made $5.07bn compared with $5.38bn a year earlier, in line with what analysts had forecast.

GE chief executive Jeff Immelt said the US economy was "challenged".

Mr Immelt is trying to slim down GE's vast empire, which includes jet engines, healthcare, financial services and the media firm NBC Universal.

GE is making money from its core industrial businesses relating to aviation and oil and gas, analysts said.

That helped boost total sales to $46.89bn from $42.38bn a year earlier.

"Many markets and industries remain healthy, while the US economy is challenged"
Jeff Immelt, GE chief executive

But the slowdown in US consumer spending and the housing slump has hit the company hard.

It is currently reviewing its entire business and may spin off or sell its consumer appliances unit.

"Many markets and industries remain healthy, while the US economy is challenged." Mr Immelt commented.

On Friday, GE exited the weakening consumer lending market in Japan by selling its Japanese consumer finance arm to Shinsei Bank.

Its shares rose 2.2% in pre-market trading in New York.

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