Welch to Retire as GE Chief in Sept.

Longtime General Electric Co. Chairman Jack Welch, who helped shape the international conglomerate into the world’s most valuable company, said Thursday that he will retire at the company’s Sept. 7 board meeting.

The announcement came as the company announced a 15% increase in second-quarter income, meeting Wall Street’s expectations.

Welch, 65, planned to retire in April but deferred his departure to shepherd the $41-billion merger of GE and Honeywell International Inc. That deal was derailed this month by objections from European Union antitrust regulators.

Welch’s hands-on leadership and management style is credited with helping successfully oversee GE’s diverse operations, which range from jet engines to medical equipment to the NBC television network. At about $450 billion, GE is the world’s largest company in terms of market value.

Welch, who has received a $7.1-million advance to write a book about business management, has said he does not intend to run another company, but would consider a nonexecutive chairmanship or a position mentoring other executives.

His successor, President and Chairman-elect Jeffrey Immelt, was announced in November.

In announcing second-quarter earnings, Welch said he is leaving “more confident than ever that Jeff Immelt and his team will lead the company to greater achievements in the future.”

Earnings rose to $3.9 billion, or 39 cents a share, for the period ended June 30, from $3.38 billion, or 34 cents, a year ago.

GE said revenue declined 3% to $31.98 billion as it exited some businesses and downsized others.

The company did not reveal how much it has spent to undertake the Honeywell deal, but analyst John Inch estimated the deal cost GE $50 million to $60 million in the second quarter.

Analysts said they were impressed with the results, given the weak economy and the failed merger.

“I think particularly given the economy this was an exceptionally strong quarter,” said Inch, with Bear Stearns in New York.

Shares of GE rose $2.39, or 5%, to $47 in trading Thursday on the New York Stock Exchange.

GE, which has forecast double-digit earnings growth for the year, said its second-quarter profit was helped by strong performances in its financial services and power systems divisions.

GE Capital Services’ profit rose 16%, with strength showing in consumer services and equipment management. At NBC, profit fell 15%, hurt by the difficult advertising environment, GE said. Power systems reported a 63% jump in profit.