1:15PM New York – General Electric reports flat second quarter earnings on 11% rise in sales.

General Electric Company, a diversified technology, media and financial services company today reported second quarter revenues from continuing operations increased 11% to $46.9 billion compared to $42.4 for the same quarter of 2007.

Net income fell 6% to $5.07 billion or 51 cents per share compared to $5.38 billion or 52 cents per share for the same period of year ago.

GE Capital revenue rose 11% to $19.1 billion and industrial sales rose 15% to $27.8 billion. Earnings from continuing operations were down 4% to $5.4 billion from $5.6 billion in the second quarter a year ago.

GE organic revenue growth was 5% in the second quarter, including 9% organic growth in industrial segment, 18% rise in services. Revenues in emerging market rose 20% and in developed countries outside the U.S. rose 26%.

Only a day ago GE announced that it is considering sale of its consumer products and industrial division. The earnings at the division declined 32% to $300 million, significantly below its projection of 5% increase.

GE infrastructure reported revenue rise of 26% and net income increase of 24% to $3.17 billion. Demand from oil and gas, aviation and railroads drove the sales of gas turbines, aircraft engines and locomotives. The infrastructure division is one of the best performing division at GE and has become main earnings driver at the company in the last two years.

GE Money posted 9% profit decline and the company has agreed to sell GE Money Japan which includes asset of $8 billion and record $233 million after-tax loss for discontinued operations. GE Money also recorded $222 million increase in loan loss provisions and a decrease of $109 million of securitization in the quarter.

The recent changes in consumer finance law in Japan that has lowered the profits of all the consumer finance lenders sharply. Separately, GE Money reported sale of its Japan business for $5.4 billion to Shinsei bank.

Healthcare segment reported 8% rise in earnings NBC Universal had its seventh quarterly profit rise in a row, with profit increase of 1% to $909 million.

“The Olympics are on track to generate $1 billion in advertising revenue and $700 million of GE industrial sales,” said chairman and chief executive Jeff Immelt.

GE recorded 400 million of restructuring and other charges in the second quarter and consolidated tax rate was 16% in the period.

GE recorded equipment backlog increase of 25% to $55 billion and customer service agreement increase of 17% to $11 billion at the end of the quarter.

The company forecasted third quarter continuing operations earnings between 50 cents and 54 cents per share and reaffirmed the annual earnings guidance between $2.20 and $2.30 per share. Analysts are estimating second quarter earnings of 54 cents and men estimate for the full year of $2.22 per share, according to a survey conducted by Reuters Thomson.

The company in the quarter purchased $1.4 billion of its own stocks and in the first half of $2.5 billion. Return on average total capital in the quarter was 17.6%.

General Electric Company (GE: chart) in the last one year traded as high as $42.15 in October 2007 and as low as $26.15 in June 2008. Based on the yesterday''s closing price the company has a market cap of $ 280.28 billion.