FAIRFIELD, Conn.--(BUSINESS WIRE)--GE [NYSE: GE] announced today strong fourth-quarter 2010 earnings from continuing operations (attributable to GE) of $3.9 billion, or $0.36 per share, up 33% from the fourth quarter of 2009. Revenues grew to $41.4 billion for the quarter, the company’s first positive growth in nine quarters.
“GE ended 2010 with three consecutive quarters of strong earnings growth,” GE Chairman and CEO Jeff Immelt said. “Industrial segment revenue was up 4%, with Industrial organic growth of 6%. Fourth quarter orders grew 12% year-over-year, with a 20% increase in equipment and a 5% expansion in services. Importantly, overall orders in Energy Infrastructure grew 4%. Total company backlog in the quarter increased $3.1 billion to a record $175 billion.
“Strong performance at GE Capital was also encouraging,” Immelt said. “Fourth-quarter net income of $1.1 billion was up $1.0 billion from a year ago. Volume grew 30% in the quarter at good margins. Losses and impairments declined $0.3 billion from the third quarter of 2010 to $2.5 billion, and we saw improvement in delinquencies across the businesses.
“We continue to operate GE with discipline and rigor,” Immelt said. “Cash generated from GE Industrial operating activities totaled $4.6 billion in the quarter and $14.7 billion for the year. At year-end, we had $79 billion of consolidated cash and equivalents. Strong fourth-quarter Industrial margins (ex. NBCU) of 17.5%, up 10 bps year-over-year, reflect that GE is delivering on operations even as we increase investment in R&D, which was up 21% for the full year.”
“While we previously anticipated the sale of our majority stake in NBC Universal would close in the fourth quarter of 2010, it is now scheduled to close in the first quarter of 2011,” Immelt said. “This delay resulted in a lower-than-expected tax rate in the fourth quarter and will lead to a higher tax rate in the first quarter. We expect this will contribute to a significantly higher GE tax rate for full-year 2011.”
One-time items offset for the fourth quarter of 2010. GE had $0.10 per share of tax benefits, including IRS settlements. Restructuring and other charges totaled $0.10 per share in the quarter. These included reserves for Phase 2 of Hudson River dredging and cost reductions in GE Industrial businesses.
Significant company-to-country partnerships, sizeable Infrastructure wins and expanded operations in fast-growth regions were among fourth-quarter highlights. GE agreed to work with China’s Ministry of Railways and CSR Corporation Limited to establish a U.S.-based joint venture to advance high-speed rail and urban transit vehicles for American customers. In addition, the company agreed to create a 50-50 joint venture with China Aviation Industry Corporation to advance GE avionics competitiveness. In Russia, GE, Russian Technologies (Rostekhnologii) and INTER RAOU UES JSC agreed to form joint ventures to modernize that country’s power-generation and healthcare sectors.
Key Industrial wins in the quarter included more than $5.8 billion in commercial aviation service and equipment orders and over $3 billion in long-term service contracts with LAN, Cathay, COMAC and Delta, among others; more than $750 million in contracts from India’s Reliance Power for power-generation technology to help expand the Samalkot power plant in Andhra Pradesh; agreements worth $700 million for power-generation equipment and services for the new high-efficiency Riyadh PP11 power plant in Saudi Arabia; and a $500 million contract with Saudi Aramco to supply a broad range of equipment and services for an expansion of the Shaybah gas-oil processing facilities.
“GE continued executing a balanced capital-allocation plan in the fourth quarter with strategic acquisitions that augment core Industrial capabilities,” Immelt said. “In the last 90 days of 2010: GE Healthcare completed its $580 million acquisition of Clarient, a leading player in the fast-growing molecular diagnostics sector; GE Oil & Gas announced its intent to acquire, for $1.3 billion, Wellstream Holdings PLC, a leading engineer and manufacturer of high-quality flexible pipeline products for oil and gas transportation in the subsea production industry; GE Energy announced its intended $3 billion acquisition of Dresser, Inc., a global energy infrastructure technology and service provider. Earlier this month, GE Energy also announced the proposed acquisition of Lineage Power Holdings Inc. for $520 million, which will enhance our capabilities in Smart Grid and Data Centers energy management.
“In addition, in December, we announced the second dividend increase in six months, for a total improvement of 40% versus the beginning of the year,” Immelt said. “And since restarting the share buyback program mid-year, we repurchased $1.8 billion in stock.”
Full-year and Fourth-quarter 2010 Financial Highlights:
Full-year earnings from continuing operations attributable to GE were $12.6 billion, up 15% from $10.9 billion in 2009. EPS from continuing operations was $1.15, up 15% from last year. Segment profit increased 9% compared with 2009, as a 123% increase at GE Capital more than offset a 7% earnings decline at Technology Infrastructure.
Including the effects of discontinued operations, full-year net earnings attributable to GE were $11.6 billion ($1.06 per share attributable to common shareowners) in 2010 compared with $11.0 billion ($1.01 per share attributable to common shareowners) in 2009.
Full year revenues decreased 3% to $150.2 billion. GE Capital Services’ (GECS) revenues fell 4% versus last year to $50.5 billion. Industrial sales were $100.2 billion, down 3% from 2009.
Fourth-quarter earnings from continuing operations attributable to GE were $3.9 billion, up 31% from $3.0 billion in the fourth quarter of 2009. EPS from continuing operations was $0.36, up 33% from the fourth quarter of last year. Segment profit increased 28% compared with the fourth quarter of 2009, as increases of more than 900% at GE Capital, 38% at NBC Universal and 11% at Technology Infrastructure more than offset a 2% earnings decline at Energy Infrastructure.
Including the effects of discontinued operations, fourth-quarter net earnings attributable to GE were $4.5 billion ($0.42 per share attributable to common shareowners) in 2010 compared with $3.0 billion ($0.28 per share) in 2009, up 50%. GE Capital completed the strategic sale of BAC Credomatic GECF Inc. This resulted in a gain of $0.8 billion in discontinued operations, which was partially offset by disposition losses related to our U.S. recreational vehicle and marine equipment financing and Consumer Mexico businesses.
Fourth-quarter revenues increased 1% to $41.4 billion. GECS revenues fell 2% versus last year to $12.8 billion. Industrial sales were $28.7 billion, up 1% from 2009.
Cash generated from GE Industrial operating activities in 2010 totaled $14.7 billion, down 10% from $16.4 billion last year.
“GE exits 2010 with significant momentum,” Immelt said. “As we shared at our December 2010 investor update, we expect that GE earnings growth will continue in 2011 and 2012. We have simplified the portfolio and dramatically reduced risk. We have invested in organic growth with global partnerships, a 21% increase in R&D and a broad array of new products. We are executing a balanced and disciplined capital-allocation plan with dividend increases, acquisitions and share repurchases. Our framework for 2011 is quite achievable and we are optimistic about the future.”
The accompanying tables include information integral to assessing the company’s financial position, operating performance and cash flow.
GE will discuss preliminary fourth-quarter and full-year 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: 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 conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’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; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (Grey Zone); 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 adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned 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 financial services regulation; strategic actions, including acquisitions, joint ventures and dispositions and our success in completing announced transactions and 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 December 31 | 2010 | 2009 | V% | 2010 | 2009 | V% | 2010 | 2009 | V% | ||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||
| Sales of goods and services | $28,659 | $28,429 | $28,715 | $28,298 | $44 | $279 | |||||||||||||||||||||||||||
| Other income | 336 | 106 | 382 | 144 | - | - | |||||||||||||||||||||||||||
| GECS earnings from continuing operations | - | - | 1,036 | 73 | - | - | |||||||||||||||||||||||||||
| GECS revenues from services | 12,382 | 12,511 | - | - | 12,770 | 12,833 | |||||||||||||||||||||||||||
| Total revenues | 41,377 | 41,046 | 1 | % | 30,133 | 28,515 | 6 | % | 12,814 | 13,112 | (2 | )% | |||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||||||
| Cost of sales, operating and administrative expenses | 31,682 | 30,531 | 26,020 | 24,620 | 5,974 | 6,207 | |||||||||||||||||||||||||||
| Interest and other financial charges | 3,969 | 4,341 | 434 | 402 | 3,715 | 4,099 | |||||||||||||||||||||||||||
| Investment contracts, insurance losses and insurance annuity benefits | 802 | 760 | - | - | 844 | 812 | |||||||||||||||||||||||||||
| Provision for losses on financing receivables | 1,354 | 2,840 | - | - | 1,354 | 2,840 | |||||||||||||||||||||||||||
| Total costs and expenses | 37,807 | 38,472 | (2 | )% | 26,454 | 25,022 | 6 | % | 11,887 | 13,958 | (15 | )% | |||||||||||||||||||||
| Earnings (loss) from continuing operations before income taxes | 3,570 | 2,574 | 39 | % | 3,679 | 3,493 | 5 | % | 927 | (846 | ) | F | |||||||||||||||||||||
| Benefit (provision) for income taxes | 589 | 521 | 455 | (346 | ) | 134 | 867 | ||||||||||||||||||||||||||
| Earnings from continuing operations | 4,159 | 3,095 | 34 | % | 4,134 | 3,147 | 31 | % | 1,061 | 21 | F | ||||||||||||||||||||||
| Earnings from discontinued operations, net of taxes | 605 | 20 | 605 | 20 | 605 | 20 | |||||||||||||||||||||||||||
| Net earnings | 4,764 | 3,115 | 53 | % | 4,739 | 3,167 | 50 | % | 1,666 | 41 | F | ||||||||||||||||||||||
| Less net earnings (loss) attributable to noncontrolling interests | 229 | 102 | 204 | 154 | 25 | (52 | ) | ||||||||||||||||||||||||||
| Net earnings attributable to the Company | 4,535 | 3,013 | 51 | % | 4,535 | 3,013 | 51 | % | 1,641 | 93 | F | ||||||||||||||||||||||
| Preferred stock dividends declared | (75 | ) | (75 | ) | (75 | ) | (75 | ) | - | - | |||||||||||||||||||||||
| Net earnings attributable to GE common shareowners | $4,460 | $2,938 | 52 | % | $4,460 | $2,938 | 52 | % | $1,641 | $93 | F | ||||||||||||||||||||||
| Amounts attributable to the Company: | |||||||||||||||||||||||||||||||||
| Earnings from continuing operations | $3,930 | $2,993 | 31 | % | $3,930 | $2,993 | 31 | % | $1,036 | $73 | F | ||||||||||||||||||||||
| Earnings from discontinued operations, net of taxes | 605 | 20 | 605 | 20 | 605 | 20 | |||||||||||||||||||||||||||
| Net earnings attributable to the Company | $4,535 | $3,013 | 51 | % | $4,535 | $3,013 | 51 | % | $1,641 | $93 | F | ||||||||||||||||||||||
| Per-share amounts - earnings from continuing operations | |||||||||||||||||||||||||||||||||
| Diluted earnings per share | $0.36 | $0.27 | 33 | % | |||||||||||||||||||||||||||||
| Basic earnings per share | $0.36 | $0.27 | 33 | % | |||||||||||||||||||||||||||||
| Per-share amounts - net earnings | |||||||||||||||||||||||||||||||||
| Diluted earnings per share | $0.42 | $0.28 | 50 | % | |||||||||||||||||||||||||||||
| Basic earnings per share | $0.42 | $0.28 | 50 | % | |||||||||||||||||||||||||||||
| Total average equivalent shares | |||||||||||||||||||||||||||||||||
| Diluted shares | 10,654 | 10,661 | - | % | |||||||||||||||||||||||||||||
| Basic shares | 10,636 | 10,656 | - | % | |||||||||||||||||||||||||||||
| Dividends declared per common share | $0.14 | $0.10 | 40 | % | |||||||||||||||||||||||||||||
| (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 2009 consolidated financial statements at www.ge.com/ar2009 for further information about consolidation matters. |
|
| GENERAL ELECTRIC COMPANY | ||||||||||||||||||||||||||||||||
| Condensed Statement of Earnings | ||||||||||||||||||||||||||||||||
| Consolidated | GE (a) | Financial Services (GECS) | ||||||||||||||||||||||||||||||
| Year ended December 31 | 2010 | 2009 | V% | 2010 | 2009 | V% | 2010 | 2009 | V% | |||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||
| Sales of goods and services | $100,437 | $103,777 | $100,220 | $103,457 | $533 | $970 | ||||||||||||||||||||||||||
| Other income | 1,151 | 1,006 | 1,285 | 1,179 | - | - | ||||||||||||||||||||||||||
| GECS earnings from continuing operations | - | - | 3,130 | 1,315 | - | - | ||||||||||||||||||||||||||
| GECS revenues from services | 48,623 | 50,495 | - | - | 49,966 | 51,688 | ||||||||||||||||||||||||||
| Total revenues | 150,211 | 155,278 | (3 | )% | 104,635 | 105,951 | (1 | )% | 50,499 | 52,658 | (4 | )% | ||||||||||||||||||||
| Costs and expenses | ||||||||||||||||||||||||||||||||
| Cost of sales, operating and administrative expenses | 109,817 | 113,330 | 87,869 | 90,606 | 22,983 | 23,913 | ||||||||||||||||||||||||||
| Interest and other financial charges | 15,983 | 18,309 | 1,600 | 1,478 | 14,956 | 17,482 | ||||||||||||||||||||||||||
| Investment contracts, insurance losses and insurance annuity benefits | 3,012 | 3,017 | - | - | 3,197 | 3,193 | ||||||||||||||||||||||||||
| Provision for losses on financing receivables | 7,191 | 10,627 | - | - | 7,191 | 10,627 | ||||||||||||||||||||||||||
| Total costs and expenses | 136,003 | 145,283 | (6 | )% | 89,469 | 92,084 | (3 | )% | 48,327 | 55,215 | (12 | )% | ||||||||||||||||||||
| Earnings (loss) from continuing operations before income taxes | 14,208 | 9,995 | 42 | % | 15,166 | 13,867 | 9 | % | 2,172 | (2,557 | ) | F | ||||||||||||||||||||
| Benefit (provision) for income taxes | (1,050 | ) | 1,148 | (2,024 | ) | (2,739 | ) | 974 | 3,887 | |||||||||||||||||||||||
| Earnings from continuing operations | 13,158 | 11,143 | 18 | % | 13,142 | 11,128 | 18 | % | 3,146 | 1,330 | F | |||||||||||||||||||||
| Earnings (loss) from discontinued operations, net of taxes | (979 | ) | 82 | (979 | ) | 82 | (975 | ) | 100 | |||||||||||||||||||||||
| Net earnings | 12,179 | 11,225 | 8 | % | 12,163 | 11,210 | 9 | % | 2,171 | 1,430 | 52 | % | ||||||||||||||||||||
| Less net earnings attributable to noncontrolling interests | 535 | 200 | 519 | 185 | 16 | 15 | ||||||||||||||||||||||||||
| Net earnings attributable to the Company | 11,644 | 11,025 | 6 | % | 11,644 | 11,025 | 6 | % | 2,155 | 1,415 | 52 | % | ||||||||||||||||||||
| Preferred stock dividends declared | (300 | ) | (300 | ) | (300 | ) | (300 | ) | - | - | ||||||||||||||||||||||
| Net earnings attributable to GE common shareowners | $11,344 | $10,725 | 6 | % | $11,344 | $10,725 | 6 | % | $2,155 | $1,415 | 52 | % | ||||||||||||||||||||
| Amounts attributable to the Company: | ||||||||||||||||||||||||||||||||
| Earnings from continuing operations | $12,623 | $10,943 | 15 | % | $12,623 | $10,943 | 15 | % | $3,130 | $1,315 | F | |||||||||||||||||||||
| Earnings (loss) from discontinued operations, net of taxes | (979 | ) | 82 | (979 | ) | 82 | (975 | ) | 100 | |||||||||||||||||||||||
| Net earnings attributable to the Company | $11,644 | $11,025 | 6 | % | $11,644 | $11,025 | 6 | % | $2,155 | $1,415 | 52 | % | ||||||||||||||||||||
| Per-share amounts - earnings from continuing operations | ||||||||||||||||||||||||||||||||
| Diluted earnings per share | $1.15 | $1.00 | 15 | % | ||||||||||||||||||||||||||||
| Basic earnings per share | $1.15 | $1.00 | 15 | % | ||||||||||||||||||||||||||||
| Per-share amounts - net earnings | ||||||||||||||||||||||||||||||||
| Diluted earnings per share | $1.06 | $1.01 | 5 | % | ||||||||||||||||||||||||||||
| Basic earnings per share | $1.06 | $1.01 | 5 | % | ||||||||||||||||||||||||||||
| Total average equivalent shares | ||||||||||||||||||||||||||||||||
| Diluted shares | 10,678 | 10,615 | 1 | % | ||||||||||||||||||||||||||||
| Basic shares | 10,661 | 10,614 | - | % | ||||||||||||||||||||||||||||
| Dividends declared per common share | $0.46 | $0.61 | (25 | )% | ||||||||||||||||||||||||||||
| (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 2009 consolidated financial statements at www.ge.com/ar2009 for further information about consolidation matters. |
|
| GENERAL ELECTRIC COMPANY | |||||||||||||||||||||||||
| Summary of Operating Segments (unaudited) | |||||||||||||||||||||||||
| Three Months | Twelve Months | ||||||||||||||||||||||||
| Ended December 31 | Ended December 31 | ||||||||||||||||||||||||
| (Dollars in millions) | 2010 | 2009 | V% | 2010 | 2009 | V% | |||||||||||||||||||
| Revenues | |||||||||||||||||||||||||
| Energy Infrastructure(a) | $ | 10,960 | $ | 11,338 |
(3) |
% |
$ | 37,514 | $ | 40,648 |
(8) |
% |
|||||||||||||
| Technology Infrastructure(a) | 10,930 | 10,051 | 9 | % | 37,860 | 38,517 |
(2) |
% |
|||||||||||||||||
| NBC Universal | 4,762 | 4,268 | 12 | % | 16,901 | 15,436 | 9 | % | |||||||||||||||||
| GE Capital(a) | 11,899 | 12,344 |
(4) |
% |
47,040 | 49,746 |
(5) |
% |
|||||||||||||||||
| Home & Business Solutions(a) | 2,333 | 2,214 | 5 | % | 8,648 | 8,443 | 2 | % | |||||||||||||||||
| Total segment revenues | 40,884 | 40,215 | 2 | % | 147,963 | 152,790 |
(3) |
% |
|||||||||||||||||
| Corporate items and eliminations | 493 | 831 |
(41) |
% |
2,248 | 2,488 |
(10) |
% |
|||||||||||||||||
| Consolidated revenues from continuing operations | $ | 41,377 | $ | 41,046 | 1 | % | $ | 150,211 | $ | 155,278 |
(3) |
% |
|||||||||||||
| Segment profit (b) | |||||||||||||||||||||||||
| Energy Infrastructure(a) | $ | 2,224 | $ | 2,275 |
(2) |
% |
$ | 7,271 | $ | 7,105 | 2 | % | |||||||||||||
| Technology Infrastructure(a) | 1,883 | 1,695 | 11 | % | 6,314 | 6,785 |
(7) |
% |
|||||||||||||||||
| NBC Universal | 830 | 602 | 38 | % | 2,261 | 2,264 | - | ||||||||||||||||||
| GE Capital(a) | 1,056 | 99 | F | 3,265 | 1,462 | F | |||||||||||||||||||
| Home & Business Solutions(a) | 139 | 131 | 6 | % | 457 | 370 | 24 | % | |||||||||||||||||
| Total segment profit | 6,132 | 4,802 | 28 | % | 19,568 | 17,986 | 9 | % | |||||||||||||||||
| Corporate items and eliminations | (2,223 | ) | (1,061 | ) | U | (3,321 | ) | (2,826 | ) |
(18) |
% |
||||||||||||||
| GE interest and other financial charges | (434 | ) | (402 | ) |
(8) |
% |
(1,600 | ) | (1,478 | ) |
(8) |
% |
|||||||||||||
| GE provision for income taxes | 455 | (346 | ) | F | (2,024 | ) | (2,739 | ) | 26 | % | |||||||||||||||
| Earnings from continuing operations attributable to the Company | 3,930 | 2,993 | 31 | % | 12,623 | 10,943 | 15 | % | |||||||||||||||||
| Earnings (loss) from discontinued operations, net of taxes, attributable to the Company | 605 | 20 | F | (979 | ) | 82 | U | ||||||||||||||||||
| Consolidated net earnings attributable to the Company | $ | 4,535 | $ | 3,013 | 51 | % | $ | 11,644 | $ | 11,025 | 6 | % | |||||||||||||
| (a) | Effective January 1, 2010, we reorganized our segments. We have reclassified prior-period amounts to conform to the current-period presentation. | |
| (b) |
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 Home & Business Solutions; included in determining segment profit, which we sometimes refer to as "net earnings," for GE Capital. |
| GENERAL ELECTRIC COMPANY | |||||||||||||||||||||||||
| Summary of Operating Segments (unaudited) | |||||||||||||||||||||||||
| Additional Information | |||||||||||||||||||||||||
| Three Months | Twelve Months | ||||||||||||||||||||||||
| Ended December 31 | Ended December 31 | ||||||||||||||||||||||||
| (Dollars in millions) | 2010 | 2009 | V% | 2010 | 2009 | V% | |||||||||||||||||||
| Energy Infrastructure | |||||||||||||||||||||||||
| Revenues | $ | 10,960 | $ | 11,338 |
(3) |
% |
$ | 37,514 | $ | 40,648 |
(8) |
% |
|||||||||||||
| Segment profit | $ | 2,224 | $ | 2,275 |
(2) |
% |
$ | 7,271 | $ | 7,105 | 2 | % | |||||||||||||
| Revenues | |||||||||||||||||||||||||
| Energy | $ | 8,810 | $ | 9,249 |
(5) |
% |
$ | 30,854 | $ | 33,698 |
(8) |
% |
|||||||||||||
| Oil & Gas | 2,416 | 2,299 | 5 | % | 7,561 | 7,743 |
(2) |
% |
|||||||||||||||||
| Segment profit | |||||||||||||||||||||||||
| Energy | $ | 1,842 | $ | 1,895 |
(3) |
% |
$ | 6,235 | $ | 6,045 | 3 | % | |||||||||||||
| Oil & Gas | 435 | 422 | 3 | % | 1,205 | 1,222 |
(1) |
% |
|||||||||||||||||
| Technology Infrastructure | |||||||||||||||||||||||||
| Revenues | $ | 10,930 | $ | 10,051 | 9 | % | $ | 37,860 | $ | 38,517 |
(2) |
% |
|||||||||||||
| Segment profit | $ | 1,883 | $ | 1,695 | 11 | % | $ | 6,314 | $ | 6,785 |
(7) |
% |
|||||||||||||
| Revenues | |||||||||||||||||||||||||
| Aviation | $ | 4,804 | $ | 4,750 | 1 | % | $ | 17,619 | $ | 18,728 |
(6) |
% |
|||||||||||||
| Healthcare | 5,104 | 4,705 | 8 | % | 16,897 | 16,015 | 6 | % | |||||||||||||||||
| Transportation | 1,026 | 617 | 66 | % | 3,370 | 3,827 |
(12) |
% |
|||||||||||||||||
| Segment profit | |||||||||||||||||||||||||
| Aviation | $ | 821 | $ | 950 |
(14) |
% |
$ | 3,304 | $ | 3,923 |
(16) |
% |
|||||||||||||
| Healthcare | 1,002 | 911 | 10 | % | 2,741 | 2,420 | 13 | % | |||||||||||||||||
| Transportation | 73 | (157 | ) | F | 315 | 473 |
(33) |
% |
|||||||||||||||||
| GE Capital | |||||||||||||||||||||||||
| Revenues | $ | 11,899 | $ | 12,344 |
(4) |
% |
$ | 47,040 | $ | 49,746 |
(5) |
% |
|||||||||||||
| Segment profit | $ | 1,056 | $ | 99 | F | $ | 3,265 | $ | 1,462 | F | |||||||||||||||
| Revenues | |||||||||||||||||||||||||
| Commercial Lending and Leasing (CLL)(a) | $ | 4,796 | $ | 5,051 |
(5) |
% |
$ | 18,447 | $ | 20,762 |
(11) |
% |
|||||||||||||
| Consumer(a) | 4,517 | 4,338 | 4 | % | 17,822 | 17,634 | 1 | % | |||||||||||||||||
| Real Estate | 856 | 1,039 |
(18) |
% |
3,744 | 4,009 |
(7) |
% |
|||||||||||||||||
| Energy Financial Services | 280 | 500 |
(44) |
% |
1,957 | 2,117 |
(8) |
% |
|||||||||||||||||
| GE Capital Aviation Services (GECAS)(a) | 1,308 | 1,203 | 9 | % | 5,127 | 4,594 | 12 | % | |||||||||||||||||
| Segment profit | |||||||||||||||||||||||||
| CLL(a) | $ | 567 | $ | 352 | 61 | % | $ | 1,554 | $ | 963 | 61 | % | |||||||||||||
| Consumer(a) | 574 | 225 | F | 2,629 | 1,419 | 85 | % | ||||||||||||||||||
| Real Estate | (409 | ) | (593 | ) | 31 | % | (1,741 | ) | (1,541 | ) |
(13) |
% |
|||||||||||||
| Energy Financial Services | 33 | 31 | 6 | % | 367 | 212 | 73 | % | |||||||||||||||||
| GECAS(a) | 432 | 283 | 53 | % | 1,195 | 1,016 | 18 | % | |||||||||||||||||
|
(a) |
During the first quarter of 2009, we transferred the Transportation Financial Services business from GECAS to CLL and the Consumer business in Italy from Consumer to CLL. Prior-period amounts were reclassified to conform to the current-period presentation. |
| GENERAL ELECTRIC COMPANY | ||||||||||||||||||||
| Condensed Statement of Financial Position | ||||||||||||||||||||
| (Dollars in billions) | ||||||||||||||||||||
| Consolidated | GE (a) | Financial Services (GECS) | ||||||||||||||||||
| Assets | 12/31/10 | 12/31/09 | 12/31/10 | 12/31/09 | 12/31/10 | 12/31/09 | ||||||||||||||
| Cash & marketable securities | $ | 122.9 | $ | 121.8 | $ | 19.3 | $ | 8.7 | $ | 104.2 | $ | 113.9 | ||||||||
| Receivables | 18.6 | 16.5 | 10.4 | 9.8 | - | - | ||||||||||||||
| Inventories | 11.5 | 12.0 | 11.5 | 11.9 | 0.1 | 0.1 | ||||||||||||||
| Financing receivables - net | 310.1 | 319.2 | - | - | 319.3 | 326.9 | ||||||||||||||
| Property, plant & equipment - net | 66.2 | 69.0 | 12.4 | 12.5 | 53.8 | 56.5 | ||||||||||||||
| Investment in GECS | - | - | 69.0 | 70.8 | - | - | ||||||||||||||
| Goodwill & intangible assets | 74.4 | 76.8 | 45.0 | 45.1 | 29.5 | 31.8 | ||||||||||||||
| Other assets | 105.3 | 117.4 | 17.3 | 17.0 | 93.5 | 105.9 | ||||||||||||||
| Assets of businesses held for sale | 36.9 | 34.1 | 33.8 | 34.0 | 3.1 | 0.1 | ||||||||||||||
| Assets of discontinued operations | 5.3 | 15.1 | 0.1 | 0.1 | 5.2 | 15.1 | ||||||||||||||
| Total assets | $ | 751.2 | $ | 781.9 | $ | 218.8 | $ | 209.9 | $ | 608.7 | $ | 650.3 | ||||||||
| Liabilities and equity | ||||||||||||||||||||
| Borrowings and bank deposits | $ | 478.6 | $ | 503.4 | $ | 10.1 | $ | 12.2 | $ | 470.6 | $ | 493.6 | ||||||||
| Investment contracts, insurance liabilities and insurance annuity benefits | ||||||||||||||||||||
| 29.6 | 31.6 | - | - | 30.0 | 32.0 | |||||||||||||||
| Other liabilities | 100.5 | 107.2 | 70.0 | 68.4 | 35.2 | 43.5 | ||||||||||||||
| Liabilities of businesses held for sale | 16.0 | 6.1 | 15.5 | 6.0 | 0.6 | 0.1 | ||||||||||||||
| Liabilities of discontinued operations | 2.3 | 8.5 | 0.2 | 0.2 | 2.1 | 8.3 | ||||||||||||||
| GE shareowners' equity | 118.9 | 117.3 | 118.9 | 117.3 | 69.0 | 70.8 | ||||||||||||||
| Noncontrolling interests | 5.3 | 7.8 | 4.1 | 5.8 | 1.2 | 2.0 | ||||||||||||||
| Total liabilities and equity | $ | 751.2 | $ | 781.9 | $ | 218.8 | $ | 209.9 | $ | 608.7 | $ | 650.3 | ||||||||
|
(a) Refers to the Industrial businesses of the Company including GECS on an equity basis. |
|
|
|
December 31, 2010, 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 2009 consolidated financial statements at www.ge.com/ar2009 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 Industrial organic revenue growth, cash generated from Industrial operating activities (Industrial CFOA) for the twelve months ended December 31, 2010, compared with the twelve months ended December 31, 2009, Industrial CFOA for the three months ended December 31, 2010 and Industrial operating margins excluding NBC Universal (NBCU). The reconciliation of these measures to the most comparable GAAP measures follows.
| (Dollars in millions) | ||||||||||||
|
Industrial Organic Revenue Growth |
Three months ended December 31 |
|||||||||||
| 2010 | 2009 | V% | ||||||||||
| GE revenues as reported | $ | 30,133 | $ | 28,515 | ||||||||
| Less GECS earnings from continuing operations | 1,036 | 73 | ||||||||||
| Industrial revenues | 29,097 | 28,442 | ||||||||||
| Less the effects of: | ||||||||||||
| Acquisitions, business dispositions (other than dispositions of businesses acquired for investment) and currency exchange rates | (384 | ) | 680 | |||||||||
|
Industrial revenues excluding effects of acquisitions, business dispositions (other than dispositions of businesses acquired for investment) and currency exchange rates (Industrial organic revenues) |
$ | 29,481 | $ | 27,762 | 6 | % | ||||||
Organic revenue growth measures revenue excluding the effects of acquisitions, business dispositions and currency exchange rates. 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. We also believe that presenting organic revenue growth 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 "organic revenue growth" 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 these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.
|
Industrial CFOA |
Twelve months ended December 31 | ||||||||||
| 2010 | 2009 | V% | |||||||||
| Cash from GE's operating activities as reported | $ | 14,746 | $ | 16,407 | |||||||
| Less dividends from GECS | - | - | |||||||||
| Cash from GE's operating activities excluding dividends from GECS (Industrial CFOA) | $ | 14,746 | $ | 16,407 | (10 | )% | |||||
|
Three months |
|||||||||||
| Cash from GE's operating activities as reported | $ | 4,604 | |||||||||
| Less dividends from GECS | - | ||||||||||
| Cash from GE's operating activities excluding dividends from GECS (Industrial CFOA) | $ | 4,604 | |||||||||
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; 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.
|
Industrial Operating Margins excluding NBCU |
Three months ended December 31 | ||||||||||||||||||
| 2010 | 2009 | ||||||||||||||||||
| Segment |
Operating |
Revenues |
Operating |
Operating |
Revenues |
Operating |
|||||||||||||
| Energy Infrastructure | $ | 2,224 | $ | 10,960 | $ | 2,275 | $ | 11,338 | |||||||||||
| Technology Infrastructure | 1,883 | 10,930 | 1,695 | 10,051 | |||||||||||||||
| Home and Business Solutions | 139 | 2,333 | 131 | 2,214 | |||||||||||||||
| Industrial excluding NBCU | 4,246 | 24,223 | 17.5 | % | 4,101 | 23,603 | 17.4 | % | |||||||||||
| NBCU | 830 | 4,762 | 602 | 4,268 | |||||||||||||||
| Industrial | $ | 5,076 | $ | 28,985 | $ | 4,703 | $ | 27,871 | |||||||||||
We have provided the operating profit of our industrial businesses excluding our media business, NBC Universal, for the three months ended December 31, 2010 and 2009. We believe that it is a useful comparison because it provides investors with information on the results of our industrial businesses without the NBC Universal business, which is classified as a business held for sale. We believe that this measure, considered along with the corresponding GAAP measure, provides management and investors with additional information for comparison to other industrial businesses.