Profits drop at General Electric

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US industrial giant General Electric (GE) has reported a drop in quarterly profits after demand remained sluggish for heavy equipment.

The company said that its net profits for the three months to 31 December fell 19% from the same period last year to $3.13bn (£1.9bn)

But GE chief Jeff Immelt said: "GE's environment has improved and we saw some encouraging signs at year-end."

Its total backlog of orders had risen to a record $175bn by the end of 2009.

GE, which is the world's biggest maker of jet engines and electricity turbines, was hit hard by the financial crisis.

The company has been working hard to scale back its GE Capital finance arm, which has invested heavily in commercial property.

That division made a profit of $300m in the quarter, down 67% from the $1bn profit seen in the same period last year.

"Every segment at GE Capital was profitable with the exception of commercial real estate, which continues to operate in a difficult environment," Mr Immelt said.

For 2009 as a whole, GE made net profits of $11.2bn, down 38% from 2008.

Revenues in 2009 fell 14% to $156.8bn.