(Adds details from earnings release)
July 20 (Reuters) - General Electric Co's oilfield services arm Baker Hughes on Friday reported a slight profit miss on weaker sales in its oilfield equipment and turbomachinery businesses, sending the company's shares down 2.4 percent.
Revenue from its oilfield equipment business, which includes deepwater drilling, fell 9.4 percent to $617 million, missing analysts' estimate of $648.2 million.
The Houston-based company, however, said the macro outlook for oil markets continues to be favorable.
"North American production is increasing as operators grow rig and well counts, and we are seeing signs of increasing international activity in some geomarkets," Chief Executive Officer Lorenzo Simonelli said.
Overall revenue rose 2.4 percent to $5.55 billion, slightly below analysts' expectations of $5.57 billion. Adjusted earnings per share were 13 cents, missing analysts' forecast by 1 cent, according to Thomson Reuters I/B/E/S.
Revenue in its oilfield services unit, which accounts for more than half of its overall sales, rose 14 percent year over year to approximately $2.9 billion, driven by stronger activity in North America, where higher oil prices prompted a surge in drilling activity.
U.S. oil production hit a record 11 million barrels per day last week, according to the U.S. Energy Information Administration.
Analysts for investment firm Tudor Pickering Holt & Co called the results "not particularly sexy or a big stock mover."
Last month General Electric, said it would divest its 62.5-percent stake in Baker Hughes in the next two or three years in a bid to simplify its structure and boost shareholder returns. The conglomerate acquired the services firm in July 2017, creating the second-largest oilfield services provider by revenue.
Baker Hughes reported adjusted net income of $41 million, or 10 cents per share, in the second quarter ended June 30.
The company's shares were down 2.4 percent to $31 in premarket trading.
(Reporting by Laharee Chatterjee in Bengaluru; Editing by Sriraj Kalluvila and Nick Zieminski)