FAIRFIELD, Conn.--()--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.
“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.”
“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.
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.
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.
| 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.
| 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.
| GENERAL ELECTRIC COMPANY | ||||||||||||||||||||||||
| Summary of Operating Segments (unaudited) | ||||||||||||||||||||||||
| Three Months | Nine Months | |||||||||||||||||||||||
| Ended September 30 | 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. |
| GENERAL ELECTRIC COMPANY | ||||||||||||||||||||||
| Summary of Operating Segments (unaudited) | ||||||||||||||||||||||
| Additional Information | ||||||||||||||||||||||
| Three Months | Nine Months | |||||||||||||||||||||
| Ended September 30 | 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. |
| 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.
| 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.
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