General Electricreported earnings in line with Wall Street's expectations Friday, citing strong demand for jet engines, gas turbines and other heavy equipment, sending shares to a five-year high.
The results helped push shares of General Electric to a five-year high. The company is the parent of CNBC and CNBC.com.
Those businesses overshadowed weakness at the company's loss-making WMC Mortgage subprime lending unit, which is being put on the block.
The world's second-largest company by market capitalization also said it would roughly double its 2007 share buyback to $14 billion. It will use some of the funds budgeted for the planned $8.1 billion purchase of the diagnostics business of Abbott Laboratories Inc. That deal was scrapped this week.
"People are happy they're not doing the Abbott deal, and I'm happy they're buying back stock," said Peter Bates, equity analyst at T. Rowe Price in Baltimore.
Some investors had worried that GE was paying too much for the Abbott business.
GE, whose operations also include NBC media, said second-quarter net income rose to $5.42 billion, or 53 cents per share, from $4.95 billion, or 48 cents a share, a year earlier.
Profit from continuing operations came to 52 cents per share, matching the analysts' average forecast, according to Reuters Estimates.