General Electric Company (NYSE: GE), the largest U.S. conglomerate, said Friday its second-quarter continuing earnings rose 7 percent as strong U.S. demand for energy related equipment offset falling European demand and the effect of a strong dollar.

The Fairfield, Conn.-based company also raised its operating cash expectations to $17 billion to $19 billion based upon the restart of the GE Capital dividend. Shares fell five cents to $19.75 in premarket trading.

GE earned $4 billion, or 38 cents per share, on a 2 percent increase in revenue to $36.5 billion. Excluding one-time items, GE earned $3.1 billion, a 16 percent increase over the year-earlier level. Analysts polled by Bloomberg News expected, on average, earnings per share of 37 cents.

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