GE Reports 16% Rise in 2nd-Quarter Income

General Electric Co. reported a 16% increase in second-quarter earnings to $720 million, reflecting strong revenue growth in its financial services, aircraft engine and plastics and medical systems business units.

The Fairfield, Conn.-based company said revenue was up 23%.

In individual business units, the company said its financial services unit performed favorably despite the record $25.3-million settlement that Kidder, Peabody & Co. agreed to pay the government to settle insider trading charges in June. GE, which owns 80% of the brokerage, said the fine was offset by higher earnings from GE Credit Corp. and Employers Reinsurance Corp.