[0] GE Reports Record Third-Quarter 2000 Results Earnings Per Share Up 19% to $.32 Revenues Up 18% Over 1999.Business Editors FAIRFIELD, Conn.--(BUSINESS WIRE)--Oct. 11, 2000 GE achieved record results for the third quarter of 2000 with broad-based strength across the company's businesses, Chairman John F. Welch reported today. Specific highlights include: -- Revenues for the third quarter increased to a record $32.0 billion, 18% above last year's quarter, reflecting continued growth from globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation and product services. -- Third-quarter earnings per share increased 19% to $.32, up from last year's $.27, and earnings increased 20% to $3.180 billion. Both earnings per share and earnings were records for the quarter. -- Excluding the effects of a third-quarter retirement benefit provision associated with the new labor agreement, GE's third-quarter operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 17.6% of sales, up from last year's 16.7%, reflecting increasing benefits from GE's focus on product services, Six Sigma Not to be confused with Sigma 6. Six Sigma is a set of practices originally developed by Motorola to systematically improve processes by eliminating defects.[1] A defect is defined as nonconformity of a product or service to its specifications. quality and e-Business initiatives. GE's reported third-quarter operating margin was 16.6%. -- GE's industrial businesses achieved revenue growth of 18% above third quarter 1999. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for six of seven operating segments increased by double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. -- led by Power Systems, Medical Systems, Plastics and Aircraft Engines. -- GE Capital Services' third-quarter earnings rose to $1.478 billion, 17% above last year's $1.262 billion. These record results reflect the globalization and diversity of GE Capital's businesses, with strong double-digit increases in its Specialized Financing, Consumer Services Consumer Services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, [paints, plastics, metals, waxes, coatings, minerals, , Equipment Management and Mid-Market Financing segments. -- Cash generated from GE's operating activities during the first nine months was a record $9.9 billion, up 34% from last year's $7.4 billion. As part of the $22 billion share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, GE purchased $495 million of its stock during the third quarter to reach $17.0 billion -- 943 million shares--purchased since December 1994. "In addition to delivering record third-quarter results, GE's businesses made aggressive moves to position themselves for strong future growth", Mr. Welch said. Highlights of recent activities include: GE Power Systems (GEPS GEPS General Electric Power System ) continued to experience strong demand for power generation equipment and services. Orders for the quarter were up 90% to $7.3 billion. Power Systems continued to win the majority of the orders for heavy-duty gas turbines in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. with orders more than double the third quarter 1999 level. Demand for fully packaged 25-to-60 megawatt gas turbines at S&S Energy Products continued to build with orders up more than three-fold from the 1999 quarter. Power Systems added $1.2 billion in new long-term service agreements in the quarter bringing the total commitments for these long-term contracts to $12.2 billion. GEPS continued redefining the large portable power market with the first five TM2500 portable power plants launched this summer at Commonwealth Edison This article is about ComEd in Illinois. For ConEd in New York, see Consolidated Edison. Commonwealth Edison (or "ComEd"), owned by Exelon Corporation, is the largest electric utility in Illinois, serving the Chicago and Northern Illinois area. being shipped to Cork, Ireland, where they will supply up to 110 megawatts of temporary winter peaking capacity. GEPS acquired Smallworldwide, a UK-based developer of software solutions for spatial mapping of networks. GE Aircraft Engines continued to win the majority of the world's orders for airline jet engines, including more than $2 billion in commercial engine wins at the Farnborough Air Show The Farnborough International Airshow is a seven-day international trade fair for the aerospace business which is held biennially in England. The airshow is organised by Farnborough International Limited, a wholly owned subsidiary of British aerospace industry's body the Society and significant orders for the longer-range Boeing 777 aircraft from ILFC ILFC International Lease Finance Corporation ILFC International Lunar Finance Commission (TV show: Space: 1999) , ANA and Air France. Lockheed Martin selected GE engines for the U.S. Air Force C-5 modernization program with a potential value in excess of $2.5 billion. GE Engine Services reported nearly $1 billion in new multi-year service contracts with several airlines including Qantas, Ansett/Air New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. and Japan Air Lines. GE Capital took broad-based actions to drive future growth. GE Americom launched its GE-7 satellite, reinforcing its position as the number one provider of satellite services in North America. Penske truck leasing Penske Truck Leasing Co., L.P., headquartered in Reading, Pa., is a joint venture of Penske Corporation and General Electric. A global transportation services provider, Penske operates over 216,000 vehicles and serves customers from more than 1,000 locations in North America, South and rental business acquired Rentway, Ltd., expanding Penske's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. service network and positioning Penske as the leading Canadian truck leasing and rental business. GE Capital Aviation Services and GE Equity announced a strategic investment in Carmen Carmen throws over lover for another. [Fr. Lit.: Carmen; Fr. Opera: Bizet, Carmen, Westerman, 189–190] See : Faithlessness Carmen the cards repeatedly spell her death. [Fr. Systems, a worldwide leader in developing solutions for airlines to optimize the use of aircraft and crews. GE Capital formed a joint venture, Japan Equity Capital Co. Ltd., with Sumitomo Corp. and Daiwa Securities to manage a private equity fund in Japan. GE Medical Systems (GEMS) completed three acquisitions to enhance its technical position and growth. Magnex will expand GEMS performance in the fast-growth high-field MR market; MicroMedical increases GE's presence in cardiovascular information systems; and Access Medical is the industry's largest multi-vendor used equipment business. GEMS e-Business momentum continues to build with online orders surpassing $1 billion year-to-date, and more than 650 diagnostic units with Internet connectivity. GE Transportation Systems (GETS) acquired Harmon Industries, Incorporated. Harmon's wide range of railroad and transit signaling, wayside and control products and systems complement GETS service offerings. GETS was awarded a Canadian Pacific Railway Canadian Pacific Railway, transcontinental transportation system in Canada and extending into the United States, privately owned and operated. The construction of a railroad crossing the continent in Canadian territory was one of the conditions on which British contract to service more than 300 General Motors' EMD EMD Electromechanical dissociation, see there locomotives. GETS received locomotive orders for 60 U.S. units from Amtrak Amtrak, the National Railroad Passenger Corp., authorized to operate virtually all intercity passenger railroad routes in the United States. Amtrak was created by Congress in 1970 in response to more than two decades of continuous operating deficits by privately run and 10 units from Adtranz in Europe. NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. garnered the most Emmy nominations and awards for the sixth consecutive year. The West Wing and Will & Grace won the best drama and comedy series, respectively. The West Wing broke the all-time record for Emmy wins by any series in a single season. NBC's Today Show in Sydney had two of its top ten most watched weeks in the 49-year history of the show. NBC's Today Show, Nightly News and Tonight Show With Jay Leno continue to win their time periods finishing the quarter #1. CNBC CNBC Center for the Neural Basis of Cognition (artificial intelligence) CNBC Consumer News and Business Channel CNBC Congress of National Black Churches, Inc. Business Day continued its strong ratings performance beating CNN CNN or Cable News Network Subsidiary company of Turner Broadcasting Systems. It was created by Ted Turner in 1980 to present 24-hour live news broadcasts, using satellites to transmit reports from news bureaus around the world. for the fourth consecutive quarter. NBC's Olympic success was broad-based with coverage on NBC reaching 185 million Americans during its 17 days of coverage and boosted ratings for the Today Show 25%, CNBC 88% and MSNBC MSNBC Microsoft/National Broadcasting Company 181%. NBC Olympics.com had 43 million page views averaging 23 minutes per visitor. NBC successfully negotiated long-term cable extension deals with the vast majority of U.S. cable system operators and now has agreements for CNBC and MSNBC Olympic cable distribution through 2008. GE Plastics completed the acquisition of Cadillac Plastics, a global distributor of plastic shapes including sheet, film, tube, rod and fabricated parts. This addition expands its product offering and worldwide distribution network. Plastics also announced the opening of two new compounding plants in Shanghai, China, and Bangkok, Thailand, to serve its growing Asian customer base in the business equipment, automotive and optical media markets. GE Appliances registered significant market share gains from product and distribution moves. New product introductions in the quarter were led by the successful launch of Wizard(TM), the electronically controlled clothes care system, the Advantium(TM) built-in wall oven, and the Aquarius(TM) front-loading automatic washing machine. In August, Wal-Mart, the world's largest retailer, announced that it would begin selling a full line of GE-branded major appliances. GE Industrial Systems continued to expand its portfolio of product offerings through the acquisitions of the German company Graesslin, specializing in time switches, and a majority interest in Instrument Transformers Inc., a leading manufacturer of indoor-type instrument transformers for the industrial market. Mr. Welch concluded: "The record results for the third quarter once again demonstrate the ability of GE's diverse mix of leading global businesses to deliver top-line growth, increased margins and strong cash generation. The combination of global growth, expansion of our product services activities, rapid introduction of new products, our Six Sigma quality initiative and our e-Business initiatives position GE to deliver another year of record performance in 2000. We are comfortable with the First Call analysts' consensus estimate of $1.27 per share for 2000." GE (NYSE NYSE See: New York Stock Exchange : GE) is a diversified services, technology and manufacturing company with a commitment to achieving customer success and worldwide leadership in each of its businesses. For more information, visit the company's Web site at http://www.ge.com. Caution Concerning Forward-Looking Statements This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global economic, business, competitive market and regulatory factors. More detailed information about those factors is contained in GE's filings with the Securities and Exchange Commission.
GENERAL ELECTRIC COMPANY
All amounts except per-share earnings are in millions of U.S. dollars.
THIRD QUARTER NINE MONTHS ENDED
SEPTEMBER 30, 2000
2000 1999 V% 2000 1999 V%
Revenues $32,014 $27,200 18 $94,872 $78,775 20
Earnings $3,180 $ 2,653 20 $9,150 $7,628 20
Per-Share Earnings
- diluted $0.32 $0.27 19 $0.91 $0.76 20
- basic $0.32 $0.27 19 $0.93 $0.78 19
Segment Information
2000 1999 V% 2000 1999 V%
Revenues
Aircraft
Engines $2,580 $2,659 (3) $7,770 $7,727 1
Appliances 1,495 1,449 3 4,451 4,126 8
NBC 1,895 1,076 76 5,244 4,038 30
Industrial Products
and Systems 2,777 2,802 (1) 8,599 8,226 5
Plastics 1,970 1,690 17 5,845 5,046 16
Power Systems 3,521 2,464 43 10,469 6,507 61
Technical
Products
and Services 1,902 1,601 19 5,556 4,721 18
GE Capital
Services 16,444 14,002 17 48,595 39,763 22
Segment profit
Aircraft Engines 614 536 15 1,781 1,527 17
Appliances 159 137 16 503 475 6
NBC 292 265 10 1,321 1,143 16
Industrial Products
and Systems 497 491 1 1,614 1,424 13
Plastics 487 390 25 1,443 1,255 15
Power Systems 670 397 69 1,875 1,104 70
Technical Products
and Services 439 316 39 1,192 912 31
GE Capital Services
net earnings 1,478 1,262 17 3,965 3,386 17
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