GE Delivers Record Second Quarter 2005 Financial Results.FAIRFIELD, Conn -- General Electric (NYSE NYSE See: New York Stock Exchange : GE) Second Quarter 2005 Highlights --Revenues up 13% to $41.6 billion, with 8% organic growth --Earnings of $4.6 billion, up 24% --Earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) of $.44, up 22% --Operating profit margin of 15.1%, up 1.6 points --All 11 GE businesses deliver at least double-digit earnings growth --First-half cash flow from operating activities (CFOA CFOA Chief Fire Officers’ Association (UK Office of the Deputy Prime Minister Fire and Rescue National Framework) CFOA Cash Flow from Operating Activities CFOA Chief Financial Officer's Act of 1990 ) up 18%, industrial CFOA up 24% --Full-year 2005 EPS target increased to $1.80-$1.83 GE achieved record second-quarter earnings of $4.6 billion, 24% higher than second quarter 2004, on 13% growth in revenues to $41.6 billion, the Company announced today. First-half cash flow from operating activities (CFOA) of $8.0 billion rose 18%, with CFOA of GE's industrial businesses up 24%. "GE continued its strong performance in the second quarter," said GE Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jeff Immelt. "Our improved business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point and solid execution resulted in all of our businesses delivering at least double-digit earnings growth," Immelt said. "Total orders for the quarter were up 13% over second quarter 2004, and our backlog for major equipment orders grew 15% to $23 billion. Organic growth for the quarter was on target at 8%, and revenues from our growth initiatives in services and our new platforms grew 10% and 23%, respectively. In addition, global revenues increased 20%. As a result, we are further narrowing our EPS outlook to the high end of our original guidance for the full year and now expect to deliver $1.80-$1.83, up 12-14%. "We have aggressively executed a strategy to expand our margins and sustain our earnings growth for the long term," Immelt said. "Our focus on technical innovation is enabling us to bring to market advanced new products such as the H System(TM) turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. , coal gasification Coal gasification The conversion of coal or coal char to gaseous products by reaction with steam, oxygen, air, hydrogen, carbon dioxide, or a mixture of these. , the GEnx(TM) jet engine, the GE Evolution(TM) locomotive locomotive, vehicle used to pull a train of unpowered railroad cars. Types of Locomotives The steam-powered locomotive played a key role during the development and golden age of railroading, but, despite its long and picturesque history, it has , and water desalination Water desalination The removal of dissolved minerals (including salts) from seawater or brackish water. This may occur naturally as part of the hydrologic cycle, or as an engineered process. systems just as we are entering a period of expanding global infrastructure development. These long-lived products allow us to offer high-margin, multi-year service agreements that will add substantially to our current services backlog of more than $83 billion. We are also launching high-margin Healthcare, Security and Consumer & Industrial products that can expand our share position. Our simplification efforts will lower costs, generate cash for investment in future growth, and make it easier for customers to do business with us. These core initiatives position us to achieve consistent double-digit earnings growth with expanding returns on capital in 2005 and beyond." GE will discuss preliminary second-quarter results on a conference call and Webcast at 8:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today. Call information is available at www.ge.com/investor, and related charts will be posted there prior to the call. Second Quarter 2005 Financial Highlights As of July 5, 2005, GE's 11 businesses were reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. into six businesses. Second-quarter results in this press release are reported according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the 11-business organization that was in effect during the period. The Company will provide historical results on the new six-business basis in September. --Earnings were a record $4.647 billion, up 24% from last year's $3.751 billion. Earnings per share (EPS) grew 22% to $.44, compared with $.36 last year (up 16% excluding a previously announced SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 133-related correction to second quarter 2004). All 11 GE businesses contributed at least double-digit earnings growth. Operating profit margin Operating profit margin The ratio of operating profit to net sales. of 15.1% increased 1.6 percentage points over second quarter 2004. --Revenues of $41.6 billion increased 13% from last year's $36.8 billion. Industrial sales increased 12% to $22.4 billion, reflecting the impact of acquisitions and solid organic growth. Financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. revenues of $19.0 billion were up 12% over last year. Organic revenue growth was 8%. --Cash generated from GE's operating activities in the first half of 2005 totaled $8.0 billion, up 18% from $6.8 billion last year, reflecting a 24% increase in CFOA from industrial businesses. "GE is in tremendous shape," Immelt said. "GE is a strong and consistent growth company with expanding returns and strong cash flow. We are in the right businesses, benefiting from above-average market growth, and we are now organized to serve our customers with a deep and focused team. I'm very proud of our team's performance. We are confident in our ability to deliver sustainable growth for our investors." Second Quarter 2005 Business Highlights Transportation --Received engine, locomotive and services orders in the quarter totaling $3.5 billion, up $0.1 billion over second quarter last year. --Increased penetration of Transportation's ecomagination(SM) products with selection of the GEnx aircraft engine by two airlines to power new aircraft and by Boeing for its proposed 747 Advanced program, which represents more than $10 billion of potential revenues; orders for the GE90-115B engine and the GE Evolution locomotive; and plans announced during the quarter to develop a six-axle hybrid freight locomotive for commercial launch in 2008. --Shipped 193 GE Evolution locomotives This is a list of locomotives (classes, or individual locomotives) that currently have articles in Wikipedia.
--Received aircraft engine orders from Japan Airlines, EVA Eva to marry winner of singing contest. [Ger. Opera: Wagner, Meistersinger, Westerman, 225–228] See : Prize 1. Eva - A toy ALGOL-like language used in "Formal Specification of Programming Languages: A Panoramic Primer", F.G. Airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. , Pakistan Airlines, Bombardier, China Airlines and Lan Chile; won engine campaigns, either independently or through CFMI, a 50/50 joint company with Snecma Moteurs of France, or the Engine Alliance, a 50/50 joint venture with Pratt & Whitney, with seven airlines. --Launched the OnPoint(SM) aircraft engines service program with a 20-year, up to $1.5 billion agreement with AirAsia covering the engines on its new fleet of Airbus A320-200 aircraft. Energy --Signed new contractual service agreements totaling $1 billion, including two agreements with advanced technology power plants in China. --As part of GE's ecomagination initiative, launched the Arklow Wind Park, GE's first offshore project with 3.6-megawatt wind turbines; opened the U.K.'s largest onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. wind farm at Cefn Croes Cefn Croes, the site of a controversial wind farm project, is in the Cambrian Mountains, just south of the A44 road between Aberystwyth and Llangurig. Building of the wind farm started in February 2004 and was finally finished in Spring 2005 when all the construction work , Wales Wales, Welsh Cymru, western peninsula and political division (principality) of Great Britain (1991 pop. 2,798,200), 8,016 sq mi (20,761 sq km), west of England; politically united with England since 1536. The capital is Cardiff. ; shipped 321 wind turbines during the quarter, triple the number shipped in second quarter 2004; received orders for 255 1.5-megawatt wind turbines; was selected to provide wind turbines to two wind farms in China that will supply renewable power for the Beijing 2008 Olympic Games Olympic games, premier athletic meeting of ancient Greece, and, in modern times, series of international sports contests. The Olympics of Ancient Greece Although records cannot verify games earlier than 776 B.C. . --Enhanced the generating capacity of GE's H System, an ecomagination product and the world's most efficient combined-cycle gas turbine system, from a rating of 480 to 520 megawatts. --Signed an agreement with NuStart Energy Development LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control to design and seek an NRC NRC abbr. 1. National Research Council 2. Nuclear Regulatory Commission Noun 1. NRC - an independent federal agency created in 1974 to license and regulate nuclear power plants license for a fail-safe passive nuclear reactor nuclear reactor, device for producing controlled release of nuclear energy. Reactors can be used for research or for power production. A research reactor is designed to produce various beams of radiation for experimental application; the heat produced is a waste . --Exceeded $1 billion in Oil & Gas orders, 33% higher than second quarter 2004. --Shipped 27 heavy-duty gas turbines from Greenville, S.C., and Belfort, France, compared with 29 in the same period last year. Healthcare --Increased total orders 11% over second quarter 2004 to $3.9 billion, with 16% growth in equipment orders to $2.5 billion, including $0.4 billion of computed tomography Computed tomography (CT scan) X rays are aimed at slices of the body (by rotating equipment) and results are assembled with a computer to give a three-dimensional picture of a structure. (CT) orders, driven by the LightSpeed(R) Volume CT scanner CT scanner n. See CAT scanner. , an Imagination Breakthrough. --Launched GE Carestation(R), an Imagination Breakthrough that is the first anesthesia anesthesia (ănĭsthē`zhə) [Gr.,=insensibility], loss of sensation, especially that of pain, induced by drugs, especially as a means of facilitating safe surgical procedures. system for the operating room operating room n. Abbr. OR A room equipped for performing surgical operations. to provide both a patient's vital signs and a visual representation of the anesthetic anesthetic Agent that produces a local or general loss of sensation, including pain, and therefore is useful in surgery and dentistry. General anesthesia induces loss of consciousness, most often using hydrocarbons (e.g. drugs administered during surgery. --Announced joint research collaborations with Eli Lilly Eli Lilly can refer to:
n. An amyloid that circulates in human blood and in cerebrospinal fluid and is deposited into plaques found in the brains of patients with Alzheimer's disease. Also called amyloid beta-protein. . --Introduced the GE Discovery STE STE Saint (French) STE Suite (US Postal Service) STE Societe (French: Society) STE Spanning Tree Explorer STE Software Test Engineer , a new molecular imaging system with 25 patents, which combines CT and positron emission tomography positron emission tomography: see PET scan. positron emission tomography (PET) Imaging technique used in diagnosis and biomedical research. scanning technology to help doctors detect and diagnose diagnose /di·ag·nose/ (di´ag-nos) to identify or recognize a disease. di·ag·nose v. 1. To distinguish or identify a disease by diagnosis. 2. cancer, heart disease and neurological disease Noun 1. neurological disease - a disorder of the nervous system nervous disorder, neurological disorder disorder, upset - a physical condition in which there is a disturbance of normal functioning; "the doctor prescribed some medicine for the disorder"; earlier and more accurately. --Launched the GE Innova(R) 2100IQ, a new cardiovascular imaging system that will enhance clinicians' ability to diagnose and treat heart disease and enable more precise placement of interventional devices such as stents, balloons and filters. --Launched AKTAxpress(TM) MAb and HiTrap(TM) MabSelect SuRe(TM), a new solution for rapid purification purification, in religion, the ceremonial removal of what the religion deems unclean. The usual agents of purification are water (as in baptism), bodily alteration (as in circumcision), and fire. of monoclonal antibodies This is a list of monoclonal antibodies, antibodies which are clones of a single parent cell. When used as medications, the generic names end in -mab (see "Nomenclature of monoclonal antibodies"). , which are increasingly important as therapies in the management of cancer and chronic infectious diseases infectious diseases: see communicable diseases. . Infrastructure --Expanded GE's portfolio of ecomagination products and services in the Middle East-Africa region with the announcement of plans to build Africa's largest seawater seawater Water that makes up the oceans and seas. Seawater is a complex mixture of 96.5% water, 2.5% salts, and small amounts of other substances. Much of the world's magnesium is recovered from seawater, as are large quantities of bromine. desalination desalination or desalting Removal of dissolved salts from seawater and from the salty waters of inland seas, highly mineralized groundwaters, and municipal wastewaters. plant, which will supply Algeria with 200,000 cubic meters Noun 1. cubic meter - a metric unit of volume or capacity equal to 1000 liters cubic metre, kiloliter, kilolitre metric capacity unit - a capacity unit defined in metric terms of water per day for potable potable /pot·a·ble/ (po´tah-b'l) fit to drink. po·ta·ble adj. Fit to drink; drinkable. potable fit to drink. , industrial and agricultural use. --Enhanced a strategic alliance with Pall Corporation Pall Corporation NYSE: PLL, formerly Micro Metallic Company, is an East Hills, New York based global business in the diverse field of filtration, separations and purification. Total revenues for fiscal 2006 were $2 billion, with over 11,000 employees and $56. aimed at the development and sale of proprietary solutions featuring GE's advanced reverse osmosis/nanofiltration systems and services and Pall's high-performance microfiltration/ultrafiltration technologies. --Received orders from the U.S. Transportation Security Administration (TSA TSA See tax-sheltered annuity (TSA). ) for nearly $55 million of GE security equipment, including 43 advanced in-line explosives detection system machines and 19 GE EntryScan(3) trace detection portals. --Continued to broaden its security product portfolio and geographic reach with the acquisition of VisioWave, a designer and manufacturer of software and high-end hardware systems for digital video management, control and transmission. Commercial Finance --Completed the $2.3 billion acquisition of Bombardier Capital's inventory finance division, which provides floor plan financing for a variety of power sports and marine equipment, recreational vehicles and manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected in the U.S. and Canada. --Acquired ING's portion of Heller AG, Germany's leading factoring company, bringing GE's ownership to 100% and strengthening its offerings to mid-size European companies It may never be fully completed or, depending on its its nature, it may be that it can never be completed. However, new and revised entries in the list are always welcome. This is a list of companies from the countries in the European Union. . --Ended the quarter with none of Aviation Services' aircraft on the ground out of an owned fleet of more than 1,300, and expanded Aviation Services' passenger-to-freighter conversion program to include four 747-400Fs for EVA Airways of Taiwan. --Agreed to acquire approximately $1 billion of aircraft assets, including 380 corporate aircraft, from CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group Inc., expanding and diversifying GE's customer base and creating new cross-selling opportunities in the corporate aircraft segment. --Added real estate assets and employees in Europe with the acquisitions of HPE (Home Premium Edition) See Windows Vista versions. Hausbau Group of Germany and Fonciere Ariane of France. Consumer Finance --Formed a strategic alliance with Caja de Ahorros del Mediterraneo (CAM), the third-largest regional savings bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. in Spain, creating CAMGE Financiera, which will provide products such as personal loans and credit cards to Spanish consumers. --Entered into an agreement to acquire a significant stake in BAC BAC abbr. blood alcohol concentration International Bank Inc. (BAC), a privately held retail bank and credit card issuer with 178 branches in six Central American countries Noun 1. Central American country - any one of the countries occupying Central America; these countries (except for Belize and Costa Rica) are characterized by low per capita income and unstable governments Central American nation , creating the opportunity to deliver enhanced consumer credit products to a rapidly growing market. --Signed a five-year extension of its agreement with Tesco in Thailand for the Lotus Dual Card and other Consumer Finance products. --Signed two major co-branded card deals in India: one for the LG Electronics Loyalty Card, India's first consumer durable retail card, and the second with IRCTC IRCTC Indian Railway Catering and Tourism Corporation Ltd. (India) .com (Indian State Railway), the fastest growing website in Asia, for a co-branded card offering discounts on online purchases. NBC Universal NBC Universal is a media and entertainment company formed in May 2004 by the combination of General Electric's NBC with Vivendi Universal Entertainment (part of the French Media Group, Vivendi SA). GE owns 80% of NBC Universal with the remaining 20% owned by Vivendi SA. --Announced a six-year deal with the National Football League to begin airing a primetime network television package in 2006, and signed John Madden mad·den v. mad·dened, mad·den·ing, mad·dens v.tr. 1. To make angry; irritate. 2. To drive insane. v.intr. To become infuriated. to announce the games. --Continued the strong performance of cable entertainment, with USA Network and Sci Fi Channel Sci Fi Channel may refer to:
--Marked Today's 500th consecutive week in first place in homes and total viewers, continuing a streak that began the week of December 11, 1995. --Continued NBC's late-night leadership, with Jay Leno Jay Leno (born April 28, 1950) is an Emmy-winning American comedian, writer who is best known as the current host of NBC television's long-running variety and talk program The Tonight Show. Biography Leno was born in New Rochelle, New York. and Conan O'Brien Conan Christopher O'Brien (born April 18, 1963)[1] is an Emmy-winning American comedian, writer and television personality best known as host of NBC's late-night talk/variety show Late Night with Conan O'Brien. leading their competitors among adults 18-49 by 33 percent and 57 percent, respectively. --Delivered the industry's strongest concentrations of adults 18-49 in households with incomes above $75,000 for an unscripted un·script·ed adj. Not adhering to or in accordance with a script written beforehand: "his unscripted encounters with the press" Eleanor Clift. series (The Apprentice A person who agrees to work for a specified time in order to learn a trade, craft, or profession in which the employer, traditionally called the master, assents to instruct him or her. ), a drama (The West Wing), and a comedy (The Office). --Signed an agreement for Telemundo to produce short programming segments for Wal-Mart Television Network, expanding Telemundo's reach into the Hispanic marketplace. --Ended the quarter with Universal Pictures' The Interpreter A high-level programming language translator that translates and runs the program at the same time. It translates one program statement into machine language, executes it, and then proceeds to the next statement. exceeding $150 million in worldwide box office revenues and Universal Studios Home Entertainment's Meet The Fockers ranked as the #1 DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. and video rental title for the first half of 2005. Advanced Materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, --Introduced two Advanced Materials products as ecomagination products: flexible Noryl(TM) resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing , for lighter-weight automotive wiring, and Silwet(TM) Silicone silicone, polymer in which atoms of silicon and oxygen alternate in a chain; various organic radicals, such as the methyl group, CH3, are bound to the silicon atoms. Super Spreader spreader, n See condenser. , which helps farmers and agribusinesses reduce fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. and insecticide insecticide Any of a large group of substances used to kill insects. Such substances are mainly used to control pests that infest cultivated plants and crops or to eliminate disease-carrying insects in specific areas. use. --Commissioned a state-of-the-art plant at Wuxi, China to meet local and global demand for quartz tubing used in lighting products. Consumer & Industrial --Introduced new products, including the GE Profile SmartDispense dishwasher, a GE ecomagination Ecomagination is General Electric's (G.E.) growth strategy to design and build products that benefit customers and society in an ecologically friendly way. It is based on four commitments:
The word ceramic is derived from the Greek word κεραμικός (keramikos). metal halide halide: see halogen. 20 watt Par 20 lamp, which won the LightFair award for best new High Intensity Discharge product. --Continued strong sales of high-end Monogram monogram [Gr.,=single letter], symbol of a name or names, consisting typically of a letter or several letters worked together. A famous monogram is that of Christ, consisting of X (chi) and P (rho), the first two letters of Christ in Greek. (R) and Profile(R) appliances and achieved strong growth in sales of Ultra Fluorescent lamps fluorescent lamp Type of electric discharge lamp consisting of a glass tube filled with a mixture of argon and mercury vapor. A current of electricity causes the vapor to produce ultraviolet radiation that, in turn, excites a phosphor coating on the inside of the tube, , a GE ecomagination product. Equipment and Other Services --Continued its international expansion, with strong Penske Logistics revenue growth from multinational customers, TIP Europe's largest European lease agreement to date, for more than 1,300 trailer units, and Railcar Services' renewal of a contract for more than 4,000 containers and chassis Pronounced "chah-see," it is a physical structure that holds everything or that everything is attached to. A computer's cabinet is often called the chassis. with key shipping partner TFM TFM Traffic Flow Management TFM TeX Font Metrics TFM Transportacion Ferroviaria Mexicana TFM Trusted Facility Manual TFM Testicular Feminization TFM Total Facility Management TFM Tentative Final Monograph TFM Transaction Flow Manager TFM Thermally Fused Melamine of Mexico. --Won "Best Telematics Portable / Handheld Product" from Telematics Update for an innovative handheld diagnostic tool developed for GE's VeriWise(TM) asset intelligence product. Insurance --Achieved year-to-date client retention rate of 89% at GE Insurance Solutions in an increasingly competitive market. --Completed the sale of Medical Protective to Berkshire Hathaway's Columbia Insurance Company for $825 million. GE (NYSE: GE) is Imagination at Work -- a diversified diversified (di·verˑ·s technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com. Caution Concerning Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 2005 results are preliminary and quarterly information is unaudited. 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 often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from the behavior of financial markets, including fluctuations in interest rates and commodity prices, from future integration of acquired businesses, from future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries, from unanticipated loss development in our insurance businesses, and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory 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
---------------------
Second quarters ended June 30 2005 2004 V%
--------------------------------------- -------- -------- ---
Revenues
Sales of goods and services $22,989 $20,654
Earnings of GECS - -
GECS revenues from services 17,971 15,802
Other income 596 325
-------- --------
Total revenues 41,556 36,781 13%
-------- --------
Costs and expenses
Cost of sales, operating and
administrative expenses 26,688 24,611
Interest and other financial charges 3,897 2,784
Insurance losses and policyholder and
annuity benefits 3,696 3,743
Provision for losses on financing
receivables 958 1,004
Minority interest in net earnings of
consolidated affiliates 456 186
-------- --------
Total costs and expenses 35,695 32,328 10%
-------- --------
Earnings before income taxes 5,861 4,453
Provision for income taxes (1,214) (702)
-------- --------
Net earnings $4,647 $3,751 24%
======== ========
Per-share amounts
Diluted earnings per share $0.44 $0.36 22%
Total average equivalent shares 10,650 10,431 2%
Basic earnings per share $0.44 $0.36 22%
Total average equivalent shares 10,604 10,387 2%
Dividends declared per share $0.22 $0.20
Financial Services
GE (GECS)
----------------------- ---------------------
Second quarters ended
June 30 2005 2004 V% 2005 2004 V%
--------------------------------- -------- ----- ------- ------- -----
Revenues
Sales of goods and
services $22,408 $19,994 $664 $728
Earnings of GECS 2,299 1,523 - -
GECS revenues from
services - - 18,314 16,151
Other income 624 329 - -
-------- -------- ------- -------
Total revenues 25,331 21,846 16% 18,978 16,879 12%
-------- -------- ------- -------
Costs and expenses
Cost of sales, operating
and administrative
expenses 19,316 17,481 7,622 7,370
Interest and other
financial charges 336 49 3,714 2,851
Insurance losses and
policyholder and
annuity benefits - - 3,747 3,808
Provision for losses on
financing receivables - - 958 1,004
Minority interest in net
earnings of consolidated
affiliates 249 110 207 76
-------- -------- ------- -------
Total costs and
expenses 19,901 17,640 13% 16,248 15,109 8%
-------- -------- ------- -------
Earnings before
income taxes 5,430 4,206 2,730 1,770
Provision for
income taxes (783) (455) (431) (247)
-------- -------- ------- -------
Net earnings $4,647 $3,751 24% $2,299 $1,523 51%
======== ======== ======= =======
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 2004 consolidated
financial statements at www.ge.com/annual04 for further information
about consolidation matters.
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
Consolidated
---------------------
Six months ended June 30 2005 2004 V%
----------------------------------- -------- -------- ---
Revenues
Sales of goods and services $44,394 $37,764
Earnings of GECS - -
GECS revenues from services 35,975 32,147
Other income 913 462
-------- --------
Total revenues 81,282 70,373 16%
-------- --------
Costs and expenses
Cost of sales, operating and
administrative expenses 52,301 46,302
Interest and other financial charges 7,674 5,626
Insurance losses and policyholder and
annuity benefits 7,716 7,332
Provision for losses on financing
receivables 1,860 1,959
Minority interest in net earnings of
consolidated affiliates 771 270
-------- --------
Total costs and expenses 70,322 61,489 14%
-------- --------
Earnings before income taxes 10,960 8,884
Provision for income taxes (2,348) (1,767)
-------- --------
Net earnings $8,612 $7,117 21%
======== ========
Per-share amounts
Diluted earnings per share $0.81 $0.69 17%
Total average equivalent shares 10,643 10,325 3%
Basic earnings per share $0.81 $0.69 17%
Total average equivalent shares 10,599 10,279 3%
Dividends declared per share $0.44 $0.40
Financial Services
GE (GECS)
----------------------- ---------------------
Six months ended
June 30 2005 2004 V% 2005 2004 V%
-------------------------------- -------- ----- ------- ------- -----
Revenues
Sales of goods and
services $43,241 $36,674 $1,338 $1,304
Earnings of GECS 4,567 3,494 - -
GECS revenues from
services - - 36,621 32,760
Other income 954 468 - -
-------- -------- ------- -------
Total revenues 48,762 40,636 20% 37,959 34,064 11%
-------- -------- ------- -------
Costs and expenses
Cost of sales, operating
and administrative
expenses 37,636 32,161 15,170 14,657
Interest and other
financial charges 717 288 7,234 5,555
Insurance losses and
policyholder
and annuity benefits - - 7,806 7,432
Provision for losses on
financing receivables - - 1,860 1,959
Minority interest in net
earnings of consolidated
affiliates 435 148 336 122
-------- -------- ------- -------
Total costs and expenses 38,788 32,597 19% 32,406 29,725 9%
-------- -------- ------- -------
Earnings before
income taxes 9,974 8,039 5,553 4,339
Provision for income
taxes (1,362) (922) (986) (845)
-------- -------- ------- -------
Net earnings $8,612 $7,117 21% $4,567 $3,494 31%
======== ======== ======= =======
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 2004 consolidated
financial statements at www.ge.com/annual04 for further information
about consolidation matters.
Summary of Operating Segments (unaudited)
General Electric Company and consolidated affiliates
Second Quarters Six Months
Ended June 30 Ended June 30
-------------------- --------------------
(Dollars in millions) 2005 2004 V% 2005 2004 V%
-------------------- --------------------
Revenues
Advanced Materials $2,253 $2,048 10 $4,480 $3,933 14
Commercial Finance 6,068 5,732 6 12,108 11,123 9
Consumer Finance 4,928 3,830 29 9,617 7,419 30
Consumer & Industrial 3,576 3,490 2 6,837 6,587 4
Energy 4,537 4,118 10 9,039 7,983 13
Equipment & Other Services 1,975 1,763 12 3,894 4,015 (3)
Healthcare 3,768 3,372 12 7,089 5,867 21
Infrastructure 1,232 862 43 2,197 1,638 34
Insurance 6,007 5,554 8 12,340 11,507 7
NBC Universal 3,858 2,867 35 7,459 4,449 68
Transportation 4,244 3,903 9 7,977 7,308 9
Corporate items and
eliminations (890) (758)(17) (1,755) (1,456)(21)
---------------- ----------------
Consolidated revenues $41,556 $36,781 13 $81,282 $70,373 16
================ ================
Segment profit (a)
Advanced Materials $258 $161 60 $533 $332 61
Commercial Finance 1,215 975 25 2,366 1,930 23
Consumer Finance 735 600 23 1,470 1,202 22
Consumer & Industrial 227 204 11 392 353 11
Energy 698 634 10 1,295 1,284 1
Equipment & Other Services 65 (105) F 64 (101) F
Healthcare 672 584 15 1,081 923 17
Infrastructure 168 134 25 315 247 28
Insurance 284 53 F 667 463 44
NBC Universal 979 768 27 1,688 1,162 45
Transportation 898 810 11 1,642 1,447 13
---------------- ----------------
Total segment profit 6,199 4,818 29 11,513 9,242 25
GE corporate items and
eliminations (433) (563) 23 (822) (915) 10
GE interest and other
financial charges (336) (49) U (717) (288) U
GE provision for income taxes (783) (455)(72) (1,362) (922)(48)
---------------- ----------------
Consolidated net earnings $4,647 $3,751 24 $8,612 $7,117 21
================ ================
(a) Segment profit always excludes the effects of principal
pension plans 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; certain gains and losses from
dispositions; and litigation settlements or other charges,
responsibility for which precedes the current management team. Segment
profit excludes or includes interest and other financial charges and
segment income taxes according to how a particular segment management
is measured - excluded in determining operating profit for Advanced
Materials, Consumer & Industrial, Energy, Healthcare, Infrastructure,
NBC Universal, and Transportation, but included in determining segment
profit, which we refer to as "segment net earnings," for Commercial
Finance, Consumer Finance, Equipment & Other Services, and Insurance.
Condensed Statement of Financial Position
General Electric Company and consolidated affiliates
(Dollars in billions)
Consolidated
-----------------------
Assets 6/30/05 12/31/04
--------- ----------
Cash & marketable securities $146.8 $150.9
Receivables 13.0 14.2
Inventories 10.5 9.8
GECS financing receivables - net 276.0 282.7
Property, plant & equipment - net 64.8 63.3
Investment in GECS - -
Goodwill & intangible assets 85.5 83.2
Other assets 143.8 146.4
--------- ----------
Total assets $740.4 $750.5
========= ==========
Liabilities and equity
Borrowings $365.5 $370.4
Insurance reserves 136.0 140.6
Other liabilities & minority
interest 126.5 128.7
Shareowners' equity 112.4 110.8
--------- ----------
Total liabilities and equity $740.4 $750.5
========= ==========
Financial Services
GE (GECS)
-------------------- -------------------
Assets 6/30/05 12/31/04 6/30/05 12/31/04
--------- --------- --------- ---------
Cash & marketable
securities $2.1 $3.6 $145.0 $147.5
Receivables 13.2 14.5 - -
Inventories 10.3 9.6 0.2 0.2
GECS financing
receivables - net - - 276.0 282.7
Property, plant &
equipment - net 16.2 16.8 48.5 46.6
Investment in GECS 55.7 54.3 - -
Goodwill & intangible
assets 57.3 54.7 28.1 28.5
Other assets 35.0 38.1 114.1 113.0
--------- --------- --------- ---------
Total assets $189.8 $191.6 $611.9 $618.5
========= ========= ========= =========
Liabilities and equity
Borrowings $11.4 $11.0 $355.4 $360.8
Insurance reserves - - 136.3 140.9
Other liabilities &
minority interest 66.0 69.8 64.5 62.5
Shareowners' equity 112.4 110.8 55.7 54.3
--------- --------- --------- ---------
Total liabilities and
equity $189.8 $191.6 $611.9 $618.5
========= ========= ========= =========
June 30, 2005 information is unaudited. Supplemental consolidating
data are shown for "GE" and "Financial Services (GECS)." Transactions
between GE and GECS have been eliminated from the "consolidated"
columns. See note 1 to the 2004 consolidated financial statements at
www.ge.com/annual04 for further information about consolidation
matters.
Financial Measures That Supplement GAAP
General Electric Company and consolidated affiliates
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 SEC rules. Specifically, we have referred to organic revenue
growth for the three months ended June 30, 2005, compared with the
three months ended June 30, 2004, and the increase in cash from
operating activities from our industrial businesses (or Industrial
CFOA) for the six months ended June 30, 2005, compared with the six
months ended June, 30 2004. We also referred to earnings per share
growth excluding a previously announced SFAS 133 - related correction
to second quarter 2004. The reasons we use these non-GAAP financial
measures and their reconciliation to their most directly comparable
GAAP financial measures - revenues and cash from operating activities
- follow.
(Dollars in millions, except per share amounts)
Three months
ended June 30
----------------------
2005 2004 V%
-------- -------- ---
GE consolidated revenues as reported $41,556 $36,781 13%
Less:
Effects of acquisitions, dispositions and
currency exchange rates 4,171 2,081
Insurance segment 6,007 5,554
-----------------
GE consolidated revenues excluding the effects
of acquisitions, dispositions, currency
exchange rates and Insurance (organic
revenues) $31,378 $29,146 8%
=================
Six months
ended June 30
----------------------
2005 2004 V%
-------- -------- ---
Cash from GE's operating activities as reported $8,027 $6,817 18%
Less: GECS dividends 1,839 1,842
-----------------
Cash from GE's operating activities excluding
dividends from GECS (Industrial CFOA) $6,188 $4,975 24%
=================
Three months
ended June 30
----------------------
2005 2004 V%
-------- -------- ---
GE earnings per share excluding a previously
announced SFAS 133 - related correction to
second quarter 2004 $0.44 $0.38 16%
Less: effect of SFAS 133 - related correction (0.02)
-----------------
GE earnings per share $0.44 $0.36 22%
=================
We believe that meaningful analysis of our financial performance
requires an understanding of the factors underlying that performance
and our judgments about the likelihood that particular factors will
repeat. In some cases, short-term patterns and long-term trends may be
obscured by large factors or events. For example, events or trends in
a particular segment may be so significant as to obscure patterns and
trends of our industrial or financial services businesses in total.
For this reason, we believe that investors may find it useful to see
our second quarter 2005 revenue growth without the effect of
acquisitions, dispositions and currency exchange rates, and without
the effect of our Insurance segment, whose revenues were adversely
affected by the changing economic environment and other factors in the
second quarter of 2004. Similarly, we believe that investors would
find it useful to compare our operating cash flow for the six months
ended June 30, 2005, to the operating cash flow for the six months
ended June 30, 2004, without the impact of GECS dividends, which can
vary from period-to-period. On May 6, 2005, GE filed amended financial
statements for certain prior years and interim periods, including
second quarter 2004, to reflect corrections in its accounting for
derivatives under SFAS 133. The correction had the effect of reducing
second quarter 2004 EPS from $.38 per share to $.36 per share. We are
providing the EPS comparison to the pre-correction basis because we
believe this reconciliation provides investors with a better
understanding of the second quarter 2005 earnings per share variance.
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