GENERAL ELECTRIC CO - 10-Q Quarterly Report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2004 OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____

Commission file number 1-35 GENERAL ELECTRIC COMPANY (Exact name of registrant as specified in its charter)

New York		14-0689340

(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3135 Easton Turnpike, Fairfield, CT		06828-0001

(Address of principal executive offices)		(Zip Code)

(Registrant's telephone number, including area code) (203) 373-2211 _______________________________________________ (Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes þ No ¨.

There were 10,572,133,000 shares of common stock with a par value of $0.06 per share outstanding at September 30, 2004.

(1)

General Electric Company

		Page

Part I - Financial Information

Item 1. Financial Statements
Condensed Statement of Earnings
Three Months Ended September 30, 2004		3
Nine Months Ended September 30, 2004		4
Condensed Statement of Financial Position		5
Condensed Statement of Cash Flows		6
Summary of Operating Segments		7
Notes to Condensed, Consolidated Financial Statements		8
Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition		20
Item 4. Controls and Procedures		36

Part II - Other Information

Item 1. Legal Proceedings		37
Item 2. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities		37
Item 6. Exhibits and Reports on Form 8-K		38
Signatures		39

Forward-Looking Statements

This document contains "forward-looking statements" – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from the behavior of financial markets, including fluctuations in interest rates and commodity prices; from future integration of acquired businesses; from future financial performance of major industries which we serve including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; from unanticipated loss development in our insurance businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

(2)

Part I. Financial Information

Item 1. Financial Statements

Condensed Statement of Earnings
General Electric Company and consolidated affiliates

	Three months ended September 30 (Unaudited)

	Consolidated						GE						Financial Services (GECS)

(In millions; per-share amounts in dollars)	2004			2003			2004			2003			2004			2003

Sales of goods	$	13,508		$	12,146		$	12,813		$	11,626		$	706		$	527
Sales of services		8,099			4,779			8,154			4,837			–			–
Other income		189			206			193			235			–			–
Earnings of GECS before accounting change		–			–			2,233			2,207			–			–
GECS revenues from services		16,476			16,263			–			–			16,843			16,480

Total revenues		38,272			33,394			23,393			18,905			17,549			17,007

Cost of goods sold		10,349			9,247			9,686			8,795			674			459
Cost of services sold		5,578			3,042			5,633			3,100			–			–
Interest and other financial charges		2,943			2,723			355			282			2,703			2,558
Insurance losses and policyholder and annuity benefits		3,858			4,168			–			–			3,910			4,168
Provision for losses on financing receivables		785			1,061			–			–			785			1,061
Other costs and expenses		9,401			7,956			3,075			2,241			6,530			5,844
Minority interest in net earnings of consolidated affiliates		269			77			143			44			126			33

Total costs and expenses		33,183			28,274			18,892			14,462			14,728			14,123

Earnings before income taxes and accounting change		5,089			5,120			4,501			4,443			2,821			2,884
Provision for income taxes		(1,038	)		(1,099	)		(450	)		(422	)		(588	)		(677	)

Earnings before accounting change		4,051			4,021			4,051			4,021			2,233			2,207
Cumulative effect of accounting change (note 3)		–			(372	)		–			(372	)		–			(339	)

Net earnings	$	4,051		$	3,649		$	4,051		$	3,649		$	2,233		$	1,868

Per-share amounts before accounting change
Diluted earnings per share	$	0.38		$	0.40
Basic earnings per share	$	0.38		$	0.40

Per-share amounts after accounting change
Diluted earnings per share	$	0.38		$	0.36
Basic earnings per share	$	0.38		$	0.36

Dividends declared per share	$	0.20		$	0.19

See notes to condensed, consolidated financial statements. Separate information is shown for "GE" and "Financial Services (GECS)." Transactions between GE and GECS have been eliminated from the "Consolidated" columns.

(3)

Condensed Statement of Earnings
General Electric Company and consolidated affiliates

	Nine months ended September 30 (Unaudited)

	Consolidated						GE						Financial Services (GECS)

(In millions; per-share amounts in dollars)	2004			2003			2004			2003			2004			2003

Sales of goods	$	38,915		$	35,500		$	36,995		$	33,931		$	2,010		$	1,582
Sales of services		20,457			15,710			20,647			15,930			–			–
Other income		650			409			660			458			–			–
Earnings of GECS before accounting changes		–			–			5,774			5,479			–			–
GECS revenues from services		48,635			45,604			–			–			49,615			46,179

Total revenues		108,657			97,223			64,076			55,798			51,625			47,761

Cost of goods sold		30,210			26,288			28,374			24,940			1,926			1,361
Cost of services sold		13,460			9,707			13,650			9,927			–			–
Interest and other financial charges		8,503			8,002			643			705			8,192			7,554
Insurance losses and policyholder and annuity benefits		11,190			12,409			–			–			11,342			12,409
Provision for losses on financing receivables		2,744			2,799			–			–			2,744			2,799
Other costs and expenses		27,960			23,420			8,531			7,018			19,935			16,769
Minority interest in net earnings of consolidated affiliates		539			219			291			123			248			96

Total costs and expenses		94,606			82,844			51,489			42,713			44,387			40,988

Earnings before income taxes and accounting changes		14,051			14,379			12,587			13,085			7,238			6,773
Provision for income taxes		(2,836	)		(3,350	)		(1,372	)		(2,056	)		(1,464	)		(1,294	)

Earnings before accounting changes		11,215			11,029			11,215			11,029			5,774			5,479
Cumulative effect of accounting changes (notes 3 and 4)		–			(587	)		–			(587	)		–			(339	)

Net earnings	$	11,215		$	10,442		$	11,215		$	10,442		$	5,774		$	5,140

Per-share amounts before accounting changes
Diluted earnings per share	$	1.08		$	1.10
Basic earnings per share	$	1.08		$	1.10

Per-share amounts after accounting changes
Diluted earnings per share	$	1.08		$	1.04
Basic earnings per share	$	1.08		$	1.04

Dividends declared per share	$	0.60		$	0.57

See notes to condensed, consolidated financial statements. Separate information is shown for "GE" and "Financial Services (GECS)." Transactions between GE and GECS have been eliminated from the "Consolidated" columns.

(4)

Condensed Statement of Financial Position
General Electric Company and consolidated affiliates

	Consolidated				GE				Financial Services (GECS)

(In millions; except share amounts)	9/30/04		12/31/03		9/30/04		12/31/03		9/30/04		12/31/03

Cash and equivalents	$	10,075	$	12,664	$	1,646	$	1,670	$	8,582	$	11,273
Investment securities		125,291		122,290		173		380		125,118		121,910
Current receivables		12,468		10,732		12,721		10,973		–		–
Inventories		9,734		8,752		9,531		8,555		203		197
Financing receivables – net		253,315		247,906		–		–		253,315		247,906
Other GECS receivables		38,997		37,260		–		–		42,543		39,616
Property, plant and equipment (including equipment leased to others) – net		61,447		53,388		16,126		14,566		45,321		38,822
Investment in GECS		–		–		48,989		45,308		–		–
Intangible assets – net		81,372		55,025		53,984		30,204		27,388		24,821
All other assets		111,921		99,466		38,027		30,448		74,955		69,981

Total assets	$	704,620	$	647,483	$	181,197	$	142,104	$	577,425	$	554,526