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GE'S 1992 EARNINGS PER SHARE UP 8 PERCENT; 1992 OPERATING CASH FLOW AT RECORD LEVEL

 FAIRFIELD, Conn., Jan. 20 /PRNewswire/ -- GE's preliminary earnings per share for the year 1992 of $5.51 were 8 percent more than the comparable $5.10 reported in 1991, Chairman John F. Welch, Jr. reported today. Earnings for the year were $4.725 billion, up 7 percent from the comparable $4.435 billion reported in 1991. Growth in earnings per share outpaced growth in net earnings, reflecting the impact of share repurchases.
 Earnings per share for the fourth quarter of 1992 were $1.57, up 8 percent from $1.46 for the final quarter of 1991. Earnings for the latest quarter were $1.341 billion, up 6 percent from the $1.263 billion recorded fourth quarter of 1991.
 Revenues for 1992 were $62.2 billion, up 3 percent over last year's $60.2 billion. For the fourth quarter, revenues increased to $17.8 billion, compared with last year's fourth quarter revenues of $17.6 billion.
 As previously announced, GE and Martin Marietta Corporation have reached a definitive agreement under which GE's Aerospace businesses are to be transferred to a new company controlled by the share owners of Martin Marietta. The transaction has been approved by Boards of Directors of both companies and, subject to Martin Marietta share owner approval and government review, is expected to close during the first half of 1993. For GE's 1992 reporting purposes, it is expected that the businesses to be transferred will be classified as discontinued operations.
 When the segregation between continuing and discontinued operations is finalized, it is expected that 1992 earnings per share from continuing operations will be about 10 percent higher than in 1991.
 Mr. Welch said: "GE's record 1992 earnings performance again demonstrates the strength of GE's diverse businesses and is particularly rewarding in light of the slow growth in the United States and around the world. Leading our performance were strong double-digit earnings increases at GE Financial Services, Power Systems and Medical Systems.
 "Operating margin for the year was 11.2 percent, about the same as 1991. Fourth quarter operating margin was 11.4 percent in 1992, up significantly from 10.6 percent in 1991. Strong Power Systems shipments, productivity at NBC and an improving domestic economy accounted for most of the fourth quarter increase.
 "Also in the fourth quarter, orders for longer-cycle businesses were up strongly, particularly in Power Systems, Medical Systems and Transportation Systems. During the month of December alone, Power Systems received orders totaling $1.8 billion, including major projects in Mexico, Japan and Malaysia.
 "The year's operating highlight was the increasing ability of the businesses to turn the rhetoric of speed' into the reality of speed' -- as demonstrated by record inventory turnover and productivity of nearly 5 percent during a period of slow global growth. This not only increased earnings but also translated into a record $5.3 billion in operating cash flow, some $1.3 billion over 1991 results."
 Mr. Welch concluded: "In 1992, GE again demonstrated its ability to succeed in a difficult environment. We enter 1993 better positioned than ever before, with a strong balance sheet, very strong cash flows and excellent prospects for earnings growth."
 NOTE: As previously reported, effective Jan. 1, 1991, the company adopted Statement of Financial Accounting Standards (SFAS) No. 106 - "Employers' Accounting for Postretirement Benefits Other Than Pensions." This adoption resulted in a one-time reduction of 1991 first quarter earnings of $1.799 billion ($2.07 per share) and a reported net income for the full year of $2.636 billion ($3.03 per share). Operations comparisons above use reported results excluding the one-time effect of adopting SFAS No. 106.
 GENERAL ELECTRIC COMPANY
 Segment Analysis
 The comments that follow compare revenues and operating profit by industry segment for the years 1992 and 1991.
 -- GE Financial Services comparable earnings for 1992 were $1.499 billion, 18 percent ahead of last year's $1.275 billion. GE Capital continued to record double-digit earnings growth, led by GE Mortgage Insurance, Private Label Credit Cards and Commercial Equipment Financing. Kidder, Peabody achieved sharply improved 1992 results, principally from fixed income and investment banking activities. During 1992, GEFS continued to expand through acquisitions totaling $5 billion, including the $1 billion acquisition of Avis' European fleet leasing business.
 -- GE Power Systems reported a double-digit increase in operating profit for the year, principally as the result of productivity gains and modestly higher revenues reflecting GE's leading share in advanced technology power generation equipment.
 -- Technical Products and Services operating profit was up sharply over the prior year, principally as a result of the gain arising from realignment of the equity positions of GE and Ericsson in their mobile communications venture and a double-digit operating profit increase in the Medical Systems business as a result primarily of strong productivity gains. The mobile communications venture gain was offset by restructuring in this and other segments. Segment revenues were about flat as the transfer of the computer services operation to GE Financial Services was offset by a modest increase in revenues at Medical Systems.
 -- Industrial revenues were about even with last year as the 1992 consolidation of Thorn into the Lighting business about offset reduced locomotive shipments in Transportation Systems. Operating profit was flat with productivity gains offsetting industry pricing pressures.
 -- Materials operating profit was somewhat lower on slightly higher revenues as ongoing pricing pressures were only partially offset by productivity improvements. However, the benefits of a dramatic improvement in cash flow contributed to Materials' very positive effect on the company's increase in net earnings.
 -- Appliances operating profit was moderately lower on slightly higher revenues as cost increases and industry pricing pressures more than offset productivity gains. Appliances has continued to shorten order-to-delivery cycle times resulting in lower inventory requirements, which reduced the associated carrying costs and increased the contribution to the company's net earnings.
 -- Broadcasting revenues were somewhat higher mainly as a result of the Summer Olympics. Operating profit was slightly lower. This decline was more than accounted for by the lack of a counterpart to last year's gain from the sale of NBC's interest in the RCA Columbia Home Video joint venture. Network and affiliate performance improved over 1991, despite the Summer Olympics loss.
 -- Aircraft Engines revenues and operating profit decreased somewhat reflecting both declining military engine shipments and, for the commercial business, weakness in spare parts sales as airlines continued to consolidate inventories. These developments were only partially offset by productivity gains and improved commercial engine sales.
 -- All Other revenues and operating profit were somewhat lower than 1991.
 -- The Aerospace segment (part of the Aerospace businesses that are subject to the definitive agreement with Martin Marietta) reported operating profit that was about flat with last year on somewhat lower revenues. The effect of the decline in revenues was offset by productivity gains.
 -0- 1/20/93
 /CONTACT: Bruce Bunch of GE, 203-373-2039, or home, 203-263-5595/
 (GE)


CO: General Electric Company ST: Connecticut IN: ARO SU: ERN

SH -- NY053 -- 6961 01/20/93 14:11 EST
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Date:Jan 20, 1993
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