Attached files
| file | filename |
|---|---|
| 8-K - GENERAL ELECTRIC CO | frm8k016.htm |
| EX-99.2 - GENERAL ELECTRIC CO | ex99_2.htm |
Exhibit
99.1
PRESS
RELEASE
GE
Reports 3Q ’09 EPS of $0.22 (Includes $0.05 Restructuring & Other
Charges);
Industrial
Cash Flow of $4.4B in 3Q and $11.5B YTD, up 1%;
Industrial
Segment Profit up 4%; Backlog up to Record $174B;
Capital
Finance Earns $263MM
3Q ’09
Highlights (Continuing Operations attributable to GE)
|
·
|
EPS
of $0.22 (down 51%) with $0.05 restructuring and other charges; earnings
of $2.5 billion
|
|
·
|
Strong
Industrial cash flow of $11.5 billion YTD, on pace for greater than $15
billion for full year; $61 billion consolidated cash and equivalents at
quarter-end
|
|
·
|
Company
revenues of $37.8 billion, down 20%, primarily due to GE Capital
reduction, Industrial organic sales decline, no counterpart to 3Q ’08
Olympics and effects of currency exchange
rates
|
|
·
|
Total
company orders of $18.4 billion, down 18%; equipment orders up $0.7
billion from 2Q ’09; total backlog of $174 billion, a record
high
|
|
·
|
Industrial
operating profit rate solid at 16.3%, up 260 bps from 3Q
’08
|
|
·
|
Capital
Finance earned $263 million in the quarter, $2 billion YTD; reserves
increased $0.8 billion; favorable tax credits as expected; on track for
profitable ’09
|
|
·
|
GE
Capital completed 2009 long-term debt funding plan; pre-funded >90% of
2010 plan to date; balance sheet reduction ahead of
plan
|
FAIRFIELD, Conn. – Oct. 16, 2009 –
GE announced today third-quarter 2009 earnings from continuing operations
(attributable to GE) of $2.5 billion, or $0.22 per share, including the effect
of $0.05 in restructuring and other charges, down 51% from the third quarter of
2008. Industrial segment profit grew 4% in the quarter compared to
the year-ago period. Cash generated from GE Industrial operating
activities totaled $4.4 billion in the quarter and $11.5 billion year to date,
up 1%. Total company backlog of equipment and services grew 2% to
$174 billion over the prior quarter.
“In a
global economic environment that is beginning to slowly recover, GE delivered
solid third-quarter business results,” GE Chairman and CEO Jeff Immelt
said. “We continue to execute on our plan at Capital Finance, perform
well in a slow-growth industrial environment and strengthen the balance sheet
with strong cash generation. We are aggressively controlling costs,
increasing our industrial backlog while expanding margins, and capitalizing on
strong services performance.”
Industrial
segment profit grew 4% versus the third quarter of last year. An 11%
increase in Energy Infrastructure earnings and NBC Universal’s 13% earnings
growth more than offset an 8% decrease in Technology Infrastructure’s
earnings. These, combined with 149% growth in Consumer &
Industrial earnings, partially offset continued pressure at Capital Finance,
where profit decreased 87% for the quarter compared to a year ago.
(1)
Revenues
were $37.8 billion, in line with our expectations. Industrial sales
were down 13%. Industrial organic sales, which exclude the impact of
FX and the 2008 Olympics, were down 8%. GE Capital Services (GECS)
revenues declined 31%, driven by Capital Finance ending net investment reduction
ahead of plan and the Penske Truck Leasing Co., L.P.
deconsolidation.
GE
generated $18.4 billion in Infrastructure orders, a decline of 18%
year-over-year, and an increase of $0.5 billion over the previous
quarter. High-margin service orders continued to provide
counter-cyclical balance and support future growth, increasing 3%
year-over-year. Total backlog was $174 billion, reaching an all-time
high. Equipment and service order cancellations remain
insignificant.
“I am
particularly proud of the team’s execution on Industrial cash flow,” Immelt
said. “This strong performance, despite the tough environment, has us
on pace to generate more than $15 billion in cash this year.”
In
addition, GE continued aggressive cost reductions in the
quarter. Restructuring and other items totaled $0.6 billion after
tax, or $0.05 per share, bringing year-to-date restructuring and other charges
to $1.3 billion after tax, or $0.12 per share.
“We continue to execute our plan of
creating a more focused financial services company,” Immelt
said. “Capital Finance earned $263 million in the quarter and $2
billion year to date. At the same time, we have reduced the Capital
Finance ending net investment ahead of plan and increased reserves by $0.8
billion in the quarter.
“While
it remains a tough environment for GE Capital, we are seeing signs of
stabilization,” Immelt said. “Every segment at GE Capital was
profitable with the exception of Real Estate, which is experiencing a tough
environment but where we believe the risks are well understood and
manageable.
“This
is another quarter where the company executed on our commitments,” Immelt
said. “Our Industrial segment earnings growth was positive, while we
built backlog. We are well positioned in the markets and geographies
that will grow in the future. We have successfully navigated through
the financial crisis and are preparing GE Capital to be a smaller, more focused
franchise. GE is well positioned in this reset economy.”
Third
Quarter 2009 Financial Highlights:
Earnings from continuing operations
attributable to GE were $2.5 billion, down 45% from $4.5 billion in the
third quarter of 2008. EPS from continuing operations was $0.22, down 51% from
last year. Segment profit fell 26% compared with the third quarter of 2008, as
11% growth at Energy Infrastructure, 13% growth at NBC Universal and 149% growth
at Consumer & Industrial were more than offset by an 87% earnings decline at
Capital Finance and an 8% earnings decline at Technology
Infrastructure.
Including
the effects of discontinued operations, third quarter net earnings attributable
to GE were $2.5 billion ($0.23 per share) in 2009 compared with $4.3 billion
($0.43 per share) in the third quarter of 2008.
(2)
Revenues fell 20% to $37.8
billion. GECS revenues fell 31% versus last year to $12.7 billion. Industrial
sales were $25.1 billion, down 13% from the third quarter of 2008.
Cash generated from GE
Industrial operating activities in the first nine months of 2009 totaled $11.5
billion, up 1% from $11.3 billion last year.
The
accompanying tables include information integral to assessing the company’s
financial position, operating performance and cash flow.
GE will
discuss preliminary third-quarter results on a Webcast at 8:30 a.m. ET today,
available at www.ge.com/investor. Related
charts will be posted there prior to the call.
* * *
GE
(NYSE: GE) is a diversified infrastructure, finance and media company taking on
the world’s toughest challenges. From aircraft engines and power generation to
financial services, medical imaging, and television programming, GE operates in
more than 100 countries and employs about 300,000 people worldwide. For more
information, visit the company's Web site at www.ge.com.
Caution
Concerning 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 financial
condition, and often contain words such as “expect,” “anticipate,” “intend,”
“plan,” believe,” “seek,” “see,” or “will.” Forward-looking statements by their
nature address matters that are, to different degrees, uncertain. For us,
particular uncertainties that could cause our actual results to be materially
different than those expressed in our forward-looking statements include: the
severity and duration of current economic and financial conditions, including
volatility in interest and exchange rates, commodity and equity prices and the
value of financial assets; the impact of U.S. and foreign government programs to
restore liquidity and stimulate national and global economies; the impact of
conditions in the financial and credit markets on the availability and cost of
GE Capital’s funding and on our ability to reduce GE Capital’s asset levels as
planned; the impact of conditions in the housing market and unemployment rates
on the level of commercial and consumer credit defaults; our ability to maintain
our current credit rating and the impact on our funding costs and competitive
position if we do not do so; the soundness of other financial institutions with
which GE Capital does business; the adequacy of our cash flow and earnings and
other conditions which may affect our ability to maintain our quarterly dividend
at the current level; the level of demand and financial performance of the major
industries we serve, including, without limitation, air and rail transportation,
energy generation, network television, real estate and healthcare; the impact of
regulation and regulatory, investigative and legal proceedings and legal
compliance risks, including the impact of proposed financial services
regulation; strategic actions, including acquisitions and dispositions and our
success in integrating acquired businesses; and numerous other matters of
national, regional and global scale, including those of a political, economic,
business and competitive 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.
Media
Contact:
Anne
Eisele, 203.373.3061 (office); 203.522.9045 (mobile)
anne.eisele@ge.com
Investor
Contact:
Trevor
Schauenberg, 203.373.2468 (office)
trevor.schauenberg@ge.com
(3)
GENERAL
ELECTRIC COMPANY
Condensed
Statement of Earnings
|
Consolidated
|
GE(a)
|
Financial
Services
(GECS)
|
|||||||||||||||||||||||
|
Three months ended September
30
|
2009
|
2008
|
V
|
%
|
2009
|
2008
|
V
|
%
|
2009
|
2008
|
V
|
%
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Revenues
|
|||||||||||||||||||||||||
|
Sales
of goods and services
|
$
|
25,143
|
$
|
29,160
|
$
|
25,125
|
$
|
28,868
|
$
|
213
|
$
|
579
|
|||||||||||||
|
Other
income
|
438
|
544
|
476
|
659
|
–
|
–
|
|||||||||||||||||||
|
GECS
earnings from continuing operations
|
–
|
–
|
133
|
2,010
|
–
|
–
|
|||||||||||||||||||
|
GECS
revenues from services
|
12,218
|
17,530
|
–
|
–
|
12,533
|
17,852
|
|||||||||||||||||||
|
Total
revenues
|
37,799
|
47,234
|
(20)
|
%
|
25,734
|
31,537
|
(18)
|
%
|
12,746
|
18,431
|
(31)
|
%
|
|||||||||||||
|
Costs
and expenses
|
|||||||||||||||||||||||||
|
Cost
of sales, operating and administrative
|
|||||||||||||||||||||||||
|
expenses
|
27,902
|
32,679
|
22,277
|
25,479
|
5,962
|
7,579
|
|||||||||||||||||||
|
Interest
and other financial charges
|
4,322
|
6,955
|
352
|
525
|
4,128
|
6,723
|
|||||||||||||||||||
|
Investment
contracts, insurance losses and
|
|||||||||||||||||||||||||
|
insurance
annuity benefits
|
732
|
787
|
–
|
–
|
785
|
839
|
|||||||||||||||||||
|
Provision
for losses on financing receivables
|
2,868
|
1,641
|
–
|
–
|
2,868
|
1,641
|
|||||||||||||||||||
|
Total
costs and expenses
|
35,824
|
42,062
|
(15)
|
%
|
22,629
|
26,004
|
(13)
|
%
|
13,743
|
16,782
|
(18)
|
%
|
|||||||||||||
|
Earnings
(loss) from continuing operations
|
|||||||||||||||||||||||||
|
before
income taxes
|
1,975
|
5,172
|
(62)
|
%
|
3,105
|
5,533
|
(44)
|
%
|
(997
|
)
|
1,649
|
U
|
|||||||||||||
|
Benefit
(provision) for income taxes
|
484
|
(539
|
)
|
(654
|
)
|
(996
|
)
|
1,138
|
457
|
||||||||||||||||
|
Earnings
from continuing operations
|
2,459
|
4,633
|
(47)
|
%
|
2,451
|
4,537
|
(46)
|
%
|
141
|
2,106
|
(93)
|
%
|
|||||||||||||
|
Earnings
(loss) from discontinued operations,
|
|||||||||||||||||||||||||
|
net
of taxes
|
40
|
(165
|
)
|
40
|
(165
|
)
|
40
|
(170
|
)
|
||||||||||||||||
|
Net
earnings
|
2,499
|
4,468
|
(44)
|
%
|
2,491
|
4,372
|
(43)
|
%
|
181
|
1,936
|
(91)
|
%
|
|||||||||||||
|
Less
net earnings (loss) attributable to noncontrolling
|
|||||||||||||||||||||||||
|
interests
|
5
|
156
|
(3
|
)
|
60
|
8
|
96
|
||||||||||||||||||
|
Net
earnings attributable to the Company
|
2,494
|
4,312
|
(42)
|
%
|
2,494
|
4,312
|
(42)
|
%
|
173
|
1,840
|
(91)
|
%
|
|||||||||||||
|
Preferred
stock dividends declared
|
(75
|
)
|
–
|
(75
|
)
|
–
|
–
|
–
|
|||||||||||||||||
|
Net
earnings attributable to GE common
|
|||||||||||||||||||||||||
|
shareowners
|
$
|
2,419
|
$
|
4,312
|
(44)
|
%
|
$
|
2,419
|
$
|
4,312
|
(44)
|
%
|
$
|
173
|
$
|
1,840
|
(91)
|
%
|
|||||||
|
Amounts
attributable to the Company:
|
|||||||||||||||||||||||||
|
Earnings
from continuing operations
|
$
|
2,454
|
$
|
4,477
|
(45)
|
%
|
$
|
2,454
|
$
|
4,477
|
(45)
|
%
|
$
|
133
|
$
|
2,010
|
(93)
|
%
|
|||||||
|
Earnings
(loss) from discontinued operations,
|
|||||||||||||||||||||||||
|
net
of taxes
|
40
|
(165
|
)
|
40
|
(165
|
)
|
40
|
(170
|
)
|
||||||||||||||||
|
Net
earnings attributable to the Company
|
$
|
2,494
|
$
|
4,312
|
(42)
|
%
|
$
|
2,494
|
$
|
4,312
|
(42)
|
%
|
$
|
173
|
$
|
1,840
|
(91)
|
%
|
|||||||
|
Per-share
amounts – earnings from continuing
|
|||||||||||||||||||||||||
|
operations
|
|||||||||||||||||||||||||
|
Diluted
earnings per share
|
$
|
0.22
|
$
|
0.45
|
(51)
|
%
|
|||||||||||||||||||
|
Basic
earnings per share
|
$
|
0.22
|
$
|
0.45
|
(51)
|
%
|
|||||||||||||||||||
|
Per-share
amounts – net earnings
|
|||||||||||||||||||||||||
|
Diluted
earnings per share
|
$
|
0.23
|
$
|
0.43
|
(47)
|
%
|
|||||||||||||||||||
|
Basic
earnings per share
|
$
|
0.23
|
$
|
0.43
|
(47)
|
%
|
|||||||||||||||||||
|
Total
average equivalent shares
|
|||||||||||||||||||||||||
|
Diluted
shares
|
10,638
|
9,970
|
7
|
%
|
|||||||||||||||||||||
|
Basic
shares
|
10,638
|
9,953
|
7
|
%
|
|||||||||||||||||||||
|
Dividends
declared per share
|
$
|
0.10
|
$
|
0.31
|
(68)
|
%
|
|||||||||||||||||||
(a)
Refers to the Industrial businesses of the Company including GECS on an equity
basis.
Dollar
amounts and share amounts in millions; per-share amounts in dollars; unaudited.
Supplemental consolidating data are shown for “GE” and “GECS.” Transactions
between GE and GECS have been eliminated from the “Consolidated” columns. See
Note 1 to the 2008 consolidated financial statements at www.ge.com/ar2008 for
further information about consolidation matters.
(4)
GENERAL
ELECTRIC COMPANY
Condensed
Statement of Earnings
|
Consolidated
|
GE(a)
|
Financial
Services
(GECS)
|
|||||||||||||||||||||||
|
Nine
months ended September 30
|
2009
|
2008
|
V
|
%
|
2009
|
2008
|
V
|
%
|
2009
|
2008
|
V
|
%
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Revenues
|
|||||||||||||||||||||||||
|
Sales
of goods and services
|
$
|
75,348
|
$
|
81,581
|
$
|
75,159
|
$
|
80,900
|
$
|
691
|
$
|
1,474
|
|||||||||||||
|
Other
income
|
900
|
1,693
|
1,035
|
1,984
|
–
|
–
|
|||||||||||||||||||
|
GECS
earnings from continuing operations
|
–
|
–
|
1,479
|
7,240
|
–
|
–
|
|||||||||||||||||||
|
GECS
revenues from services
|
39,097
|
53,028
|
–
|
–
|
39,969
|
54,027
|
|||||||||||||||||||
|
Total
revenues
|
115,345
|
136,302
|
(15)
|
%
|
77,673
|
90,124
|
(14)
|
%
|
40,660
|
55,501
|
(27)
|
%
|
|||||||||||||
|
Costs
and expenses
|
|||||||||||||||||||||||||
|
Cost
of sales, operating and administrative
|
|||||||||||||||||||||||||
|
expenses
|
83,042
|
92,176
|
65,986
|
71,168
|
17,950
|
22,126
|
|||||||||||||||||||
|
Interest
and other financial charges
|
14,302
|
20,103
|
1,076
|
1,681
|
13,717
|
19,242
|
|||||||||||||||||||
|
Investment
contracts, insurance losses and
|
|||||||||||||||||||||||||
|
insurance
annuity benefits
|
2,257
|
2,412
|
–
|
–
|
2,381
|
2,557
|
|||||||||||||||||||
|
Provision
for losses on financing receivables
|
8,021
|
4,453
|
–
|
–
|
8,021
|
4,453
|
|||||||||||||||||||
|
Total
costs and expenses
|
107,622
|
119,144
|
(10)
|
%
|
67,062
|
72,849
|
(8)
|
%
|
42,069
|
48,378
|
(13)
|
%
|
|||||||||||||
|
Earnings
(loss) from continuing operations
|
|||||||||||||||||||||||||
|
before
income taxes
|
7,723
|
17,158
|
(55)
|
%
|
10,611
|
17,275
|
(39)
|
%
|
(1,409
|
)
|
7,123
|
U
|
|||||||||||||
|
Benefit
(provision) for income taxes
|
566
|
(2,434
|
)
|
(2,393
|
)
|
(2,735
|
)
|
2,959
|
301
|
||||||||||||||||
|
Earnings
from continuing operations
|
8,289
|
14,724
|
(44)
|
%
|
8,218
|
14,540
|
(43)
|
%
|
1,550
|
7,424
|
(79)
|
%
|
|||||||||||||
|
Loss
from discontinued operations,
|
|||||||||||||||||||||||||
|
net
of taxes
|
(175
|
)
|
(534
|
)
|
(175
|
)
|
(534
|
)
|
(157
|
)
|
(568
|
)
|
|||||||||||||
|
Net
earnings
|
8,114
|
14,190
|
(43)
|
%
|
8,043
|
14,006
|
(43)
|
%
|
1,393
|
6,856
|
(80)
|
%
|
|||||||||||||
|
Less
net earnings attributable to noncontrolling
|
|||||||||||||||||||||||||
|
interests
|
102
|
502
|
31
|
318
|
71
|
184
|
|||||||||||||||||||
|
Net
earnings attributable to the Company
|
8,012
|
13,688
|
(41)
|
%
|
8,012
|
13,688
|
(41)
|
%
|
1,322
|
6,672
|
(80)
|
%
|
|||||||||||||
|
Preferred
stock dividends declared
|
(225
|
)
|
–
|
(225
|
)
|
–
|
–
|
–
|
|||||||||||||||||
|
Net
earnings attributable to GE common
|
|||||||||||||||||||||||||
|
shareowners
|
$
|
7,787
|
$
|
13,688
|
(43)
|
%
|
$
|
7,787
|
$
|
13,688
|
(43)
|
%
|
$
|
1,322
|
$
|
6,672
|
(80)
|
%
|
|||||||
|
Amounts
attributable to the Company:
|
|||||||||||||||||||||||||
|
Earnings
from continuing operations
|
$
|
8,187
|
$
|
14,222
|
(42)
|
%
|
$
|
8,187
|
$
|
14,222
|
(42)
|
%
|
$
|
1,479
|
$
|
7,240
|
(80)
|
%
|
|||||||
|
Earnings
(loss) from discontinued operations,
|
|||||||||||||||||||||||||
|
net
of taxes
|
(175
|
)
|
(534
|
)
|
(175
|
)
|
(534
|
)
|
(157
|
)
|
(568
|
)
|
|||||||||||||
|
Net
earnings attributable to the Company
|
$
|
8,012
|
$
|
13,688
|
(41)
|
%
|
$
|
8,012
|
$
|
13,688
|
(41)
|
%
|
$
|
1,322
|
$
|
6,672
|
(80)
|
%
|
|||||||
|
Per-share
amounts – earnings from continuing
|
|||||||||||||||||||||||||
|
operations
|
|||||||||||||||||||||||||
|
Diluted
earnings per share
|
$
|
0.75
|
$
|
1.42
|
(47)
|
%
|
|||||||||||||||||||
|
Basic
earnings per share
|
$
|
0.75
|
$
|
1.43
|
(48)
|
%
|
|||||||||||||||||||
|
Per-share
amounts – net earnings
|
|||||||||||||||||||||||||
|
Diluted
earnings per share
|
$
|
0.73
|
$
|
1.37
|
(47)
|
%
|
|||||||||||||||||||
|
Basic
earnings per share
|
$
|
0.73
|
$
|
1.37
|
(47)
|
%
|
|||||||||||||||||||
|
Total
average equivalent shares
|
|||||||||||||||||||||||||
|
Diluted
shares
|
10,601
|
9,989
|
6
|
%
|
|||||||||||||||||||||
|
Basic
shares
|
10,601
|
9,965
|
6
|
%
|
|||||||||||||||||||||
|
Dividends
declared per share
|
$
|
0.51
|
$
|
0.93
|
(45)
|
%
|
|||||||||||||||||||
(a)
Refers to the Industrial businesses of the Company including GECS on an equity
basis.
Dollar
amounts and share amounts in millions; per-share amounts in dollars; unaudited.
Supplemental consolidating data are shown for “GE” and “GECS.” Transactions
between GE and GECS have been eliminated from the “Consolidated” columns. See
Note 1 to the 2008 consolidated financial statements at www.ge.com/ar2008 for
further information about consolidation matters.
(5)
GENERAL
ELECTRIC COMPANY
Summary
of Operating Segments (unaudited)
|
Three
Months
Ended
September 30
|
Nine
Months
Ended
September 30
|
|||||||||||||||||
|
(Dollars
in millions)
|
2009
|
2008
|
V
|
%
|
2009
|
2008
|
V
|
%
|
||||||||||
|
Revenues
|
||||||||||||||||||
|
Energy
Infrastructure
|
$
|
8,917
|
$
|
9,769
|
(9
|
)
|
$
|
26,733
|
$
|
27,164
|
(2
|
)
|
||||||
|
Technology
Infrastructure
|
10,209
|
11,450
|
(11
|
)
|
31,200
|
33,761
|
(8
|
)
|
||||||||||
|
NBC
Universal
|
4,079
|
5,073
|
(20
|
)
|
11,168
|
12,539
|
(11
|
)
|
||||||||||
|
Capital
Finance
|
12,161
|
17,292
|
(30
|
)
|
38,100
|
52,242
|
(27
|
)
|
||||||||||
|
Consumer
& Industrial
|
2,438
|
2,989
|
(18
|
)
|
7,166
|
8,990
|
(20
|
)
|
||||||||||
|
Total
segment revenues
|
37,804
|
46,573
|
(19
|
)
|
114,367
|
134,696
|
(15
|
)
|
||||||||||
|
Corporate
items and eliminations
|
(5
|
)
|
661
|
U
|
978
|
1,606
|
(39
|
)
|
||||||||||
|
Consolidated
revenues from continuing
|
||||||||||||||||||
|
operations
|
$
|
37,799
|
$
|
47,234
|
(20
|
)
|
$
|
115,345
|
$
|
136,302
|
(15
|
)
|
||||||
|
Segment
profit (a)
|
||||||||||||||||||
|
Energy
Infrastructure
|
$
|
1,582
|
$
|
1,425
|
11
|
$
|
4,646
|
$
|
4,074
|
14
|
||||||||
|
Technology
Infrastructure
|
1,748
|
1,900
|
(8
|
)
|
5,384
|
5,657
|
(5
|
)
|
||||||||||
|
NBC
Universal
|
732
|
645
|
13
|
1,662
|
2,266
|
(27
|
)
|
|||||||||||
|
Capital
Finance
|
263
|
2,020
|
(87
|
)
|
2,008
|
7,602
|
(74
|
)
|
||||||||||
|
Consumer
& Industrial
|
117
|
47
|
F
|
264
|
329
|
(20
|
)
|
|||||||||||
|
Total
segment profit
|
4,442
|
6,037
|
(26
|
)
|
13,964
|
19,928
|
(30
|
)
|
||||||||||
|
Corporate
items and eliminations
|
(982
|
)
|
(39
|
)
|
U
|
(2,308
|
)
|
(1,290
|
)
|
(79
|
)
|
|||||||
|
GE
interest and other financial charges
|
(352
|
)
|
(525
|
)
|
33
|
(1,076
|
)
|
(1,681
|
)
|
36
|
||||||||
|
GE
provision for income taxes
|
(654
|
)
|
(996
|
)
|
34
|
(2,393
|
)
|
(2,735
|
)
|
13
|
||||||||
|
Earnings
from continuing operations
|
||||||||||||||||||
|
attributable
to the Company
|
2,454
|
4,477
|
(45
|
)
|
8,187
|
14,222
|
(42
|
)
|
||||||||||
|
Earnings
(loss) from discontinued
|
||||||||||||||||||
|
operations,
net of taxes, attributable to
|
||||||||||||||||||
|
the
Company
|
40
|
(165
|
)
|
F
|
(175
|
)
|
(534
|
)
|
67
|
|||||||||
|
Consolidated
net earnings attributable to
|
||||||||||||||||||
|
the
Company
|
$
|
2,494
|
$
|
4,312
|
(42
|
)
|
$
|
8,012
|
$
|
13,688
|
(41
|
)
|
||||||
|
(a)
|
Segment profit
always excludes the effects of principal pension plans, results reported
as discontinued operations, earnings attributable to noncontrolling
interests and accounting changes, and may exclude matters such as charges
for restructuring; rationalization and other similar expenses; in-process
research and development and certain other acquisition-related charges and
balances; technology and product development costs; certain gains and
losses from dispositions; and litigation settlements or other charges,
responsibility for which preceded the current management
team. Segment profit excludes or includes interest and other
financial charges and income taxes according to how a particular segment's
management is measured – excluded in determining segment profit, which we
sometimes refer to as "operating profit," for Energy Infrastructure,
Technology Infrastructure, NBC Universal and Consumer & Industrial;
included in determining segment profit, which we sometimes refer to as
"net earnings," for Capital
Finance.
|
(6)
GENERAL
ELECTRIC COMPANY
Summary
of Operating Segments (unaudited)
Additional
Information
|
Three
Months
Ended
September 30
|
Nine
Months
Ended
September 30
|
|||||||||||||||||
|
(Dollars
in millions)
|
2009
|
2008
|
V
|
%
|
2009
|
2008
|
V
|
%
|
||||||||||
|
|
|
|
|
|
||||||||||||||
|
Energy
Infrastructure
|
||||||||||||||||||
|
Revenues
|
$
|
8,917
|
$
|
9,769
|
(9
|
)
|
$
|
26,733
|
$
|
27,164
|
(2
|
)
|
||||||
|
Segment
profit
|
$
|
1,582
|
$
|
1,425
|
11
|
$
|
4,646
|
$
|
4,074
|
14
|
||||||||
|
Revenues
|
||||||||||||||||||
|
Energy
(a)
|
$
|
7,128
|
$
|
8,015
|
(11
|
)
|
$
|
21,872
|
$
|
22,283
|
(2
|
)
|
||||||
|
Oil
& Gas
|
1,953
|
1,891
|
3
|
5,444
|
5,321
|
2
|
||||||||||||
|
Segment
profit
|
||||||||||||||||||
|
Energy
(a)
|
$
|
1,273
|
$
|
1,143
|
11
|
$
|
3,965
|
$
|
3,426
|
16
|
||||||||
|
Oil
& Gas
|
338
|
305
|
11
|
800
|
721
|
11
|
||||||||||||
|
Technology
Infrastructure
|
||||||||||||||||||
|
Revenues
|
$
|
10,209
|
$
|
11,450
|
(11
|
)
|
$
|
31,200
|
$
|
33,761
|
(8
|
)
|
||||||
|
Segment
profit
|
$
|
1,748
|
$
|
1,900
|
(8
|
)
|
$
|
5,384
|
$
|
5,657
|
(5
|
)
|
||||||
|
Revenues
|
||||||||||||||||||
|
Aviation
|
$
|
4,542
|
$
|
4,841
|
(6
|
)
|
$
|
13,978
|
$
|
14,084
|
(1
|
)
|
||||||
|
Enterprise
Solutions
|
904
|
1,192
|
(24
|
)
|
2,735
|
3,532
|
(23
|
)
|
||||||||||
|
Healthcare
|
3,801
|
4,191
|
(9
|
)
|
11,310
|
12,569
|
(10
|
)
|
||||||||||
|
Transportation
|
970
|
1,256
|
(23
|
)
|
3,210
|
3,606
|
(11
|
)
|
||||||||||
|
Segment
profit
|
||||||||||||||||||
|
Aviation
|
$
|
970
|
$
|
834
|
16
|
$
|
2,973
|
$
|
2,523
|
18
|
||||||||
|
Enterprise
Solutions
|
103
|
187
|
(45
|
)
|
295
|
503
|
(41
|
)
|
||||||||||
|
Healthcare
|
508
|
634
|
(20
|
)
|
1,509
|
1,909
|
(21
|
)
|
||||||||||
|
Transportation
|
177
|
255
|
(31
|
)
|
630
|
750
|
(16
|
)
|
||||||||||
|
Capital
Finance
|
||||||||||||||||||
|
Revenues
|
$
|
12,161
|
$
|
17,292
|
(30
|
)
|
$
|
38,100
|
$
|
52,242
|
(27
|
)
|
||||||
|
Segment
profit
|
$
|
263
|
$
|
2,020
|
(87
|
)
|
$
|
2,008
|
$
|
7,602
|
(74
|
)
|
||||||
|
Revenues
|
||||||||||||||||||
|
Commercial
Lending and Leasing (CLL) (b)
|
$
|
4,668
|
$
|
6,474
|
(28
|
)
|
$
|
15,519
|
$
|
20,297
|
(24
|
)
|
||||||
|
Consumer
(b)
|
4,878
|
6,613
|
(26
|
)
|
14,508
|
19,709
|
(26
|
)
|
||||||||||
|
Real
Estate
|
982
|
1,679
|
(42
|
)
|
2,970
|
5,526
|
(46
|
)
|
||||||||||
|
Energy
Financial Services
|
483
|
1,261
|
(62
|
)
|
1,617
|
3,020
|
(46
|
)
|
||||||||||
|
GE
Commercial Aviation Services (GECAS)
|
1,150
|
1,265
|
(9
|
)
|
3,486
|
3,690
|
(6
|
)
|
||||||||||
|
Segment
profit
|
||||||||||||||||||
|
CLL
(b)
|
$
|
135
|
$
|
389
|
(65
|
)
|
$
|
625
|
$
|
1,985
|
(69
|
)
|
||||||
|
Consumer
(b)
|
434
|
796
|
(45
|
)
|
1,404
|
2,852
|
(51
|
)
|
||||||||||
|
Real
Estate
|
(538
|
)
|
244
|
U
|
(948
|
)
|
1,204
|
U
|
||||||||||
|
Energy
Financial Services
|
41
|
306
|
(87
|
)
|
181
|
606
|
(70
|
)
|
||||||||||
|
GECAS
|
191
|
285
|
(33
|
)
|
746
|
955
|
(22
|
)
|
||||||||||
|
|
||||||||||||||||||
|
(a)
|
During the
first quarter of 2009, Water was combined with Energy. Prior-period
amounts were reclassified to conform to the current-period’s
presentation.
|
|
(b)
|
During the
first quarter of 2009, we transferred Banque Artesia Nederland N.V. from
CLL to Consumer. Prior-period amounts were reclassified to conform to the
current-period’s presentation.
|
(7)
GENERAL
ELECTRIC COMPANY
Condensed
Statement of Financial Position
|
(Dollars
in billions)
|
Consolidated
|
GE(a)
|
Financial
Services
(GECS)
|
||||||||||||||||
|
Assets
|
9/30/09
|
|
12/31/08
|
|
|
9/30/09
|
|
12/31/08
|
|
9/30/09
|
|
12/31/08
|
|||||||
|
Cash
& marketable securities
|
$
|
114.1
|
$
|
89.6
|
$
|
5.2
|
$
|
12.3
|
$
|
109.6
|
$
|
78.7
|
|||||||
|
Receivables
|
19.6
|
21.4
|
12.9
|
15.1
|
–
|
–
|
|||||||||||||
|
Inventories
|
13.1
|
13.7
|
13.0
|
13.6
|
0.1
|
0.1
|
|||||||||||||
|
GECS
financing receivables – net
|
340.7
|
365.2
|
–
|
–
|
348.5
|
372.5
|
|||||||||||||
|
Property,
plant & equipment – net
|
73.0
|
78.5
|
14.3
|
14.4
|
58.7
|
64.1
|
|||||||||||||
|
Investment
in GECS
|
–
|
–
|
70.7
|
53.3
|
–
|
–
|
|||||||||||||
|
Goodwill
& intangible assets
|
99.9
|
96.7
|
67.9
|
67.8
|
32.0
|
29.0
|
|||||||||||||
|
Other
assets
|
124.5
|
120.4
|
23.7
|
22.3
|
106.7
|
104.2
|
|||||||||||||
|
Assets
of businesses held for sale
|
1.3
|
10.6
|
–
|
–
|
1.3
|
10.6
|
|||||||||||||
|
Assets
of discontinued operations
|
1.6
|
1.7
|
0.1
|
0.1
|
1.5
|
1.7
|
|||||||||||||
|
Total
assets
|
$
|
787.8
|
$
|
797.8
|
$
|
207.8
|
$
|
198.9
|
$
|
658.4
|
$
|
660.9
|
|||||||
|
Liabilities
and equity
|
|||||||||||||||||||
|
Borrowings
|
$
|
518.2
|
$
|
523.8
|
$
|
12.2
|
$
|
12.2
|
$
|
508.4
|
$
|
514.6
|
|||||||
|
Investment
contracts, insurance liabilities
|
|||||||||||||||||||
|
and
insurance annuity benefits
|
32.5
|
34.0
|
–
|
–
|
32.9
|
34.4
|
|||||||||||||
|
Other
liabilities
|
109.7
|
124.4
|
71.6
|
75.1
|
43.0
|
54.5
|
|||||||||||||
|
Liabilities
of businesses held for sale
|
0.1
|
0.6
|
–
|
–
|
0.1
|
0.6
|
|||||||||||||
|
Liabilities
of discontinued operations
|
1.5
|
1.4
|
0.2
|
0.2
|
1.3
|
1.2
|
|||||||||||||
|
GE
shareowners' equity
|
117.5
|
104.7
|
117.5
|
104.7
|
70.7
|
53.3
|
|||||||||||||
|
Noncontrolling
interests
|
8.3
|
8.9
|
6.3
|
6.7
|
2.0
|
2.3
|
|||||||||||||
|
Total
liabilities and equity
|
$
|
787.8
|
$
|
797.8
|
$
|
207.8
|
$
|
198.9
|
$
|
658.4
|
$
|
660.9
|
|||||||
(a)
Refers to the Industrial businesses of the Company including GECS on an equity
basis.
September
30, 2009, information is unaudited. Supplemental consolidating data
are shown for “GE” and “GECS.” Transactions between GE and GECS have been
eliminated from the “Consolidated” columns. See Note 1 to the 2008 consolidated
financial statements at www.ge.com/ar2008 for further information about
consolidation matters.
(8)
GENERAL
ELECTRIC COMPANY
Financial
Measures That Supplement GAAP
We
sometimes use information derived from consolidated financial information but
not presented in our financial statements prepared in accordance with U.S.
generally accepted accounting principles (GAAP). Certain of these data are
considered “non-GAAP financial measures” under the U.S. Securities and Exchange
Commission rules. These non-GAAP financial measures supplement our GAAP
disclosures and should not be considered an alternative to the GAAP measure. We
have referred to growth in industrial cash from operating activities (Industrial
CFOA) for the nine months ended September 30, 2009, compared with the nine
months ended September 30, 2008 and the decline in Industrial organic sales for
the three months ended September 30, 2009, compared with the three months ended
September 30, 2008. The reconciliations of these measures to the most comparable
GAAP measures follows.
|
(Dollars
in millions)
|
Nine
months ended
September
30
|
||||||||
|
Growth in Industrial
CFOA
|
2009
|
2008
|
V
|
%
|
|||||
|
Cash
from GE's operating activities as reported
|
$
|
11,465
|
$
|
13,635
|
(16)
|
%
|
|||
|
Less
dividends from GECS
|
–
|
2,291
|
|||||||
|
Cash
from GE's operating activities excluding
|
|||||||||
|
dividends
from GECS (Industrial CFOA)
|
$
|
11,465
|
$
|
11,344
|
1
|
%
|
|||
We
define “Industrial CFOA” as GE’s cash from operating activities less the amount
of dividends received by GE from GECS. This includes the effects of intercompany
transactions, including GE customer receivables sold to GECS; GECS services for
trade receivables management and material procurement; buildings and equipment
(including automobiles) leased by GE from GECS; information technology (IT) and
other services sold to GECS by GE; aircraft engines manufactured by GE that are
installed on aircraft purchased by GECS from third-party producers for lease to
others; medical equipment manufactured by GE that is leased by GECS to others;
and various investments, loans and allocations of GE corporate overhead costs.
We believe that investors may find it useful to compare GE’s operating cash
flows without the effect of GECS dividends, since these dividends are not
representative of the operating cash flows of our industrial businesses and can
vary from period to period based upon the results of the financial services
businesses. Management recognizes that this measure may not be comparable to
cash flow results of companies which contain both industrial and financial
services businesses, but believes that this comparison is aided by the provision
of additional information about the amounts of dividends paid by our financial
services business and the separate presentation in our financial statements of
the Financial Services (GECS) cash flows. We believe that our measure of
Industrial CFOA provides management and investors with a useful measure to
compare the capacity of our industrial operations to generate operating cash
flow with the operating cash flow of other non-financial businesses and
companies and as such provides a useful measure to supplement the reported GAAP
CFOA measure.
|
(Dollars
in millions)
|
Three
months ended
September
30
|
||||||||
|
Decline in Industrial
Organic Sales
|
2009
|
2008
|
V
|
%
|
|||||
|
Industrial
sales as reported
|
$
|
25,125
|
$
|
28,868
|
(13)
|
%
|
|||
|
Less
the effects of
|
|||||||||
|
Acquisitions,
business dispositions (other than
|
|||||||||
|
dispositions
of businesses acquired for investment)
|
|||||||||
|
and
currency exchange rates
|
(327
|
)
|
150
|
||||||
|
The
2008 Olympics broadcasts
|
–
|
1,020
|
|||||||
|
Industrial
sales excluding the effects of acquisitions, business
|
|||||||||
|
dispositions
(other than dispositions of
|
|||||||||
|
businesses
acquired for investment) , currency exchange
|
|||||||||
|
rates
and the 2008 Olympics broadcasts
|
|||||||||
|
(Industrial
organic sales)
|
$
|
25,452
|
$
|
27,698
|
(8)
|
%
|
|||
Industrial
organic sales measures sales from our industrial businesses excluding the
effects of acquisitions, business dispositions, currency exchange rates and the
2008 Olympics broadcasts for comparison of current period results with the
corresponding period of the prior year. We believe that this measure provides
management and investors with a more complete understanding of underlying
operating results and trends of established, ongoing operations by excluding the
effect of acquisitions, dispositions and currency exchange, which activities are
subject to volatility and can obscure underlying trends, and the 2008 Olympics
broadcasts, which if included would overshadow trends in ongoing sales. We also
believe that presenting organic sales separately for our industrial businesses
provides management and investors with useful information about the trends of
our industrial businesses and enables a more direct comparison to other
non-financial businesses and companies. Management recognizes that the term
“industrial organic sales” may be interpreted differently by other companies and
under different circumstances. Although this may have an effect on comparability
of absolute percentage growth from company to company, we believe that this
measure is useful in assessing trends of the respective businesses or companies
and may therefore be a useful tool in assessing period-to-period performance
trends.
(9)