General Electric Company (NYSE:GE) released its second quarter earnings report before opening bell this morning, posting non-GAAP operating earnings of 39 cents per share, an 8% increase, on revenue of $36.2 billion, a 3% increase year over year. Analysts had been expecting earnings per share of $36.31 billion for the second quarter.

General Eletric

GAAP earnings per share were 35 cents, an increase of 13% ear over year.

Breaking down GE’s Earnings

General Electric reported a 9% increase in profits from its Industrial segment, which rose to $4.2 billion. The segment’s margins expanded by 20 basis points year over year, while its revenues climbed 7% and recorded 5% organic growth. Revenues from growth markets increased 6%, while orders from growth markets rose 14%. GE saw increases in six of its nine growth areas. Services revenues rose 5%, while services orders climbed 14%.

The company reported a $246 billion backlog in equipment and services at the end of the second quarter. That’s a $23 billion increase year over year, including increases in all segments. GE invested in technology by ordering Tier 4 locomotives, nine HA gas turbines, and the first 20k-psi rated deepwater drilling system for the oil and gas industry.

GE Capital continued to pare down the size of its non-core portfolio. ENI, excluding cash and equivalents, was $371 billion at the end of the quarter, a decline of $2.4 billion quarter over quarter and 5% year over year. General Electric Capital Corporation reported an estimated Tier 1 common ratio under Basel I of 11.7%, an increase of 51 basis points. The segment’s net interest margin was 5%.

General Electric looks ahead

General Electric also said today that it plans to hold an initial public offering for its North American Retail Finance business, Synchrony Financial. The company is aiming for the end of this month and says that this is the first step toward exiting that business.

GE also reports that it is making progress on its goals of simplification. It is on track to meet its goal of a t least $1 billion in structural cost-out for the year. So far year to date, General Electric has reported $382 million in cost-out.