The world’s second-largest company, General Electric (GE), has reported an 11% rise in profits for the second quarter of 2006, to $4.9bn (£2.7bn).The industrial giant saw double-digit growth at five of its six main divisions, with only entertainment and media arm NBC Universal losing ground.

Its infrastructure, industrial, health and financial arms all performed well.

But GE shares fell by more than 1% in early Friday trading with third-quarter predictions disappointing analysts.

‘Economy solid’

Only Exxon Mobil is bigger than GE by market capitalisation, with the firm’s interests ranging from jet engines to lending.

Despite the rising interest rates and soaring oil prices, GE chairman and chief executive Jeff Immelt said the economy remained solid.

“Our economy and the markets for our products remain very strong and we’re seeing good activity across almost all our segments,” he said.

Sales overall for the quarter of $39.9bn were 9% higher than the same period in 2005.