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 March 31, 2005

¨ 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 Exchange Act). Yes þ No ¨.

There were 10,605,920,000 shares of common stock with a par value of $0.06 per share outstanding at March 31, 2005.

(1)

General Electric Company

Part I - Financial Information		Page

Item 1. Financial Statements
Condensed Statement of Earnings		3
Condensed Statement of Financial Position		4
Condensed Statement of Cash Flows		5
Summary of Operating Segments		6
Notes to Condensed, Consolidated Financial Statements		7
Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition		17
Item 4. Controls and Procedures		29

Part II - Other Information

Item 1. Legal Proceedings		30
Item 2. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities		31
Item 6. Exhibits		32
Signatures		33

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 and 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.

2005 Restatement

As described in our Annual Report on Form 10-K/A for the year ended December 31, 2004, we have restated our financial statements and other information.

For further discussion of the effects of the 2005 restatement see Part 1, Item 1. Financial Statements, note 1 of Notes to Condensed, Consolidated Financial Statements, Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition and Item 4. Controls and Procedures.

(2)

Part I. Financial Information

Item 1. Financial Statements

Condensed Statement of Earnings

General Electric Company and consolidated affiliates

	Three months ended March 31 (Unaudited)
	Consolidated						GE						Financial Services (GECS)
(In millions; per-share amounts in dollars)	2005			2004 (Restated)			2005			2004 (Restated)			2005			2004 (Restated)

Sales of goods	$	13,656		$	11,764		$	12,988		$	11,255		$	674		$	576
Sales of services		7,749			5,346			7,845			5,425			-			-
Other income		317			137			330			139			-			-
Earnings of GECS		-			-			2,268			1,971			-			-
GECS revenues from services		18,004			16,345			-			-			18,307			16,609
Total revenues		39,726			33,592			23,431			18,790			18,981			17,185

Cost of goods sold		10,606			9,112			9,977			8,628			635			551
Cost of services sold		4,936			3,506			5,032			3,585			-			-
Interest and other financial charges		3,777			2,843			381			239			3,520			2,704
Insurance losses and policyholder and
annuity benefits		4,020			3,588			-			-			4,059			3,624
Provision for losses on financing receivables		902			955			-			-			902			955
Other costs and expenses		10,071			9,074			3,311			2,468			6,913			6,736
Minority interest in net earnings of
consolidated affiliates		315			83			186			37			129			46
Total costs and expenses		34,627			29,161			18,887			14,957			16,158			14,616

Earnings before income taxes		5,099			4,431			4,544			3,833			2,823			2,569
Provision for income taxes		(1,134	)		(1,065	)		(579	)		(467	)		(555	)		(598	)
Net earnings	$	3,965		$	3,366		$	3,965		$	3,366		$	2,268		$	1,971

Per-share amounts

Diluted earnings per share	$	0.37		$	0.33
Basic earnings per share	$	0.37		$	0.33

Dividends declared per share	$	0.22		$	0.20

See notes to condensed, consolidated financial statements. Consolidating 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 Financial Position

General Electric Company and consolidated affiliates

	Consolidated				GE				Financial Services (GECS)
(In millions; except share amounts)	3/31/05		12/31/04		3/31/05		12/31/04		3/31/05		12/31/04

Cash and equivalents	$	12,899	$	15,328	$	1,510	$	3,155	$	11,567	$	12,367
Investment securities		135,735		135,536		414		413		135,344		135,152
Current receivables		13,238		14,233		13,466		14,533		-		-
Inventories		10,550