GE Posts Third-Quarter Earnings of $.40 per Share, With Double-Digit Growth at Eight of 13 Businesses And Solid Cash Flow From Operating Activities.Business Editors FAIRFIELD, Conn.--(BUSINESS WIRE)--Oct. 10, 2003 GE's earnings before required accounting changes for third quarter 2003 were $4.0 billion, or $.40 per share, compared with $4.1 billion, or $.41 per share, in third quarter 2002, the Company announced today. "We delivered broad-based performance and continued to develop the resources with which we will create growth in a slow-growth world," 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. "We had several major operating highlights in the quarter: eight of 13 businesses delivered double-digit earnings growth, cash flow from operating activities increased 29%, and our five new growth platforms This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. increased their sales by 18%. "During the quarter, we continued to accelerate the transformation of our portfolio. We announced or completed the dispositions of GE Edison Life, Financial Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Insurance Company, GE Superabrasives, and Specialty Chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. . This week we completed a definitive agreement to form NBC-Universal and create a diversified, fast-growth media business with $13 billion of pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma 2003 revenues. "And this morning, we announced an agreement to acquire Amersham plc Amersham plc was a UK pharmaceutical company, specializing in medical diagnostics and life science products. The company was formed in 1997 by merging Amersham International (U.K.), Pharmacia Biotech (Sweden) and Nycomed (Norway). , a global leader in molecular medicine. With combined pro forma 2003 revenues of $13 billion, the pairing of Amersham with GE Medical Systems will create a healthcare technology leader operating in one of the fastest-growing areas of medicine." GE will discuss third quarter results and the proposed Amersham transaction 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 and charts are available at www.ge.com/investor. Third Quarter 2003 Financial Highlights -- Earnings before required accounting changes were $4.021 billion, or $.40 per share, down 2% compared with last year's $4.087 billion, or $.41 per share. Eight of GE's 13 businesses -- Commercial Finance, Consumer Finance, Consumer Products, Insurance, Medical Systems, 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. , Specialty Materials and Transportation Systems - achieved double-digit earnings growth during the quarter. As expected, their performance was offset by the continued effects of the decline in sales of large gas turbines in the U.S. and lower non-cash earnings from the U.S. pension plans. Excluding Power Systems and the effects of pension income from both periods, earnings per share grew 14%. -- Revenues of $33.4 billion were up 2% compared to third quarter 2002. Industrial sales declined 5% to $16.5 billion, reflecting Power Systems' lower gas turbine sales; excluding Power Systems in both periods, industrial sales were flat. 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 $17.0 billion were up 13%. -- Cash generated from GE's operating activities in the first nine months of 2003 was $7.4 billion, up 29% from last year's $5.7 billion. -- Net earnings -- earnings after required accounting changes -- were $.36 per share in third quarter 2003 and $.41 per share in third quarter 2002. On July 1, 2003, GE adopted FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). Interpretation No. 46 (FIN fin, organ of locomotion characteristic of fish and consisting of thin tissue supported by cartilaginous or bony rays. In some fish, e.g., the eel, a single fin extends from the back, around the tail, and along the ventral surface. 46), which requires the consolidation of certain entities by companies that do not control those entities. Upon adoption of the new standard, GE consolidated $51 billion of assets and recorded a non-cash transition charge of $372 million, or $.04 per share, as previously estimated. "We continue to execute in a challenging economy," Immelt said. "We're entering the fourth quarter with positive momentum and we expect to earn $.45-$.47 per share -- up 45% over last year's reported results. With multiple revenue streams and new platforms, we expect 10 of our 13 businesses to generate double-digit earnings growth in the quarter, with per-share growth from operations, excluding mainly the impact of last year's reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. charges, of more than 10%. For the full year, we expect to deliver $1.55-$1.57 per share. "At the same time, we are positioning the company for long-term, high-value growth. Our core initiatives -- technology, services, customer focus, 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 growth platforms -- are building sustainable competitive advantage. The creation of NBC-Universal and the expansion of our healthcare business through the Amersham transaction should give our company strong momentum for the future. "I am immensely proud of the GE team that is making the company better each day," Immelt said. Third Quarter 2003 Business Highlights NBC -- Commenced exclusive negotiations with Vivendi Universal to merge NBC with Vivendi Universal Entertainment and create one of the fastest-growing and most profitable media companies; signed definitive agreement on Oct. 8. -- Led the summer ratings period in prime-time among adults 18-49 for the ninth year in a row, winning every prime-time week between Memorial Day and Labor Day Labor Day, holiday celebrated in the United States and Canada on the first Monday in September to honor the laborer. It was inaugurated by the Knights of Labor in 1882 and made a national holiday by the U.S. Congress in 1894. among adults 18-49. -- Continued to lead among adults 18-49 at the start of the fall television season, with the three highest-rated new-series premieres and an overall premiere-week winning margin of 24 percent. -- Shattered shat·ter v. shat·tered, shat·ter·ing, shat·ters v.tr. 1. To cause to break or burst suddenly into pieces, as with a violent blow. 2. a. all previous Bravo BRAVO Cardiology A clinical trial–Blockade of the GP IIB/IIIA Receptor to Avoid Vascular Occlusion– which evaluated lotrafiban in preventing strokes and acute MI. See GP IIB/IIIA. ratings records with Queer Eye Queer Eye (originally Queer Eye for the Straight Guy)[1] is an hour-long American Emmy award-winning television gay series that premiered on the Bravo cable television network on July 15, 2003, and promptly became both a surprise hit and one of the most for the Straight Guy, and more than doubled the channel's year-ago prime-time average ratings among viewers 25-54. Medical Systems -- Received total orders for the quarter of $2.4 billion, up 8% over third quarter 2002, led by 29% growth in orders for Ultrasound ultrasound or sonography, in medicine, technique that uses sound waves to study and treat hard-to-reach body areas. In scanning with ultrasound, high-frequency sound waves are transmitted to the area of interest and the returning echoes recorded products to $224 million. Orders in China totaled $174 million, up 18% over third quarter 2002. -- Announced the signing of an historic seven-year agreement with New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Presbyterian Hospital Presbyterian Hospital can refer to several places:
development and performance improvement methods as well as access to cutting-edge technologies such as flat panel digital mammography mammography, diagnostic procedure that uses low-dose X rays to detect abnormalities in the breasts. The early diagnosis of breast cancer made possible by the routine use of mammography for screening women increases a woman's treatment alternatives and improves her , digital X-Ray, 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), magnetic resonance imaging (MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. ) and positron emission tomography positron emission tomography: see PET scan. positron emission tomography (PET) Imaging technique used in diagnosis and biomedical research. (PET). -- Introduced the GE InstaTrak(TM) Surgical Navigation System A GPS-based electronic system in a car or truck that provides a real time map of the vehicle's current location as well as step-by-step directions to a programmed destination. See GPS and vehicle tracking. , an advanced technology for cranial cranial /cra·ni·al/ (-al) 1. pertaining to the cranium. 2. toward the head end of the body; a synonym of superior in humans and other bipeds. cra·ni·al adj. and spine procedures which surgeons can use to more clearly visualize a patient's anatomy and optimally position surgical instruments A surgical instrument is a specially designed tool or device for performing specific actions of carrying out desired effects during a surgery or operation, such as modifying biological tissue, or to provide access or viewing it. . -- Received regulatory approvals for the acquisition of Instrumentarium Corporation, a leading provider of medical equipment and services for the operating room operating room n. Abbr. OR A room equipped for performing surgical operations. , and completed the transaction Oct. 9; in addition, completed the acquisition of Triple G(R) Systems Group, a developer of medical laboratory information systems. Aircraft Engines -- Won engine and services orders in the quarter totaling $2.4 billion. -- Won orders for commercial engines for wide-body aircraft from China Airlines, ILFC ILFC International Lease Finance Corporation ILFC International Lunar Finance Commission (TV show: Space: 1999) and Japan Airlines, and from Skywest for regional jet aircraft. In addition, CFMI, a 50/50 joint venture of GE and Snecma Moteurs of France, won commercial engines deals for narrow-body aircraft Noun 1. narrow-body aircraft - a commercial airliner with a single aisle narrow-body, narrowbody aircraft airliner - a commercial airplane that carries passengers with AirTran Airways AirTran Airways is a low-cost airline that is a Delaware corporation with headquarters in Orlando, Florida, USA and is a subsidiary of AirTran Holdings. AirTran operates over 750 daily flights throughout the eastern USA and the Midwest, including over 270 daily departures from , Frontier Airlines This article is about Frontier Airlines that was founded in 1994. For the company known as Frontier Airlines from 1950 to 1986, see Frontier Airlines (1950-1986). For the similarly named Frontier Flying Service see Frontier Flying Service. and Southwest Airlines This article is about the American airline. For the former Japanese airline, see Japan Transocean Air. For the British airline, see Air Southwest. Southwest Airlines Co. . -- Signed a 15-year services agreement with AirTran worth approximately $700 million to maintain the airline's CFM (Cubic Feet per Minute) The measurement of air flow. Cooling fans are rated in CFM. 56-7 engines. -- Attained certification of the GE90-115B engine with the U.S. Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control , and continued a 1,600-hour flight test program on Boeing's new 777 extended-range aircraft, with delivery to customers of the first aircraft planned for April 2004. Power Systems -- Commenced commercial operation of the H System(TM), the most energy-efficient combined-cycle power generation system ever built, at Baglan Bay Baglan Bay is a district and community of Neath Port Talbot county borough, south Wales. Baglan Bay is a re-generation area and new light industries have been built. A gas fired power station known as Baglan Bay power station and owned by GE was completed in 2004 following the in 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. . -- Won agreements to supply more than 180 1.5-megawatt wind turbines, including 25 to DKR DKR Danish Krone (currency of Denmark) DKR Dark Knight Returns (comic) DKR Diddy Kong Racing (video game) DKR Dynamic Knowledge Repository DKR Dynamic Kinetic Resolution Development LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control of Houston Texas for the Sweetwater Wind Project, and 16 turbines, along with turnkey construction of two wind farms, to ENERSIS ENERSIS Energy Systems and Infrastructure SA of Portugal. -- Signed new Energy Services contractual service commitments valued at $1.4 billion. Contractual service agreements in place totaled $29.7 billion and covered 18% more gas turbines and 17% more sites than in third quarter 2002. -- Signed an agreement with Aker Kvaerner-Kvaerner Oilfield Products to continue development and commercialization of subsea Subsea is a general term frequently used to refer to equipment, technology, and methods employed to explore, drill, and develop oil and gas fields that exist below the ocean floors. This may be in "shallow" or "deepwater". compression technology designed to reduce the costs of deepwater oil and gas field exploitation. -- Acquired MJ Harden hard·en v. hard·ened, hard·en·ing, hard·ens v.tr. 1. To make hard or harder. 2. To enable to withstand physical or mental hardship. 3. Associates, Inc., which specializes in geographic information systems geographic information system (GIS) Computerized system that relates and displays data collected from a geographic entity in the form of a map. The ability of GIS to overlay existing data with new information and display it in colour on a computer screen is used primarily to solutions for industries such as pipelines and utilities. Commercial Finance -- Agreed to acquire most of Transamerica's commercial finance business, adding $8.5 billion in managed assets and expanding distribution financing for manufacturers and dealers, as well as leasing and commercial loan financing for a wide range of sectors including equipment, real estate and international structured finance. -- Continued to grow healthcare financial services by co-leading $150 million in financing for Hanger Orthopedic orthopedic /or·tho·pe·dic/ (-pe´dik) pertaining to the correction of deformities of the musculoskeletal system; pertaining to orthopedics. , a leading provider of orthopedic and prosthetic pros·thet·ic adj. 1. Serving as or relating to a prosthesis. 2. Of or relating to prosthetics. prosthetic serving as a substitute; pertaining to prostheses or to prosthetics. services, and participating in a $135 million financing for Inverness Inverness, town, Scotland Inverness (ĭn'vərnĕs`), town (1991 pop. 39,736), Highland, N Scotland, on the Moray Firth at the mouth of the Ness River. Medical, a provider of women's health Women's Health Definition Women's health is the effect of gender on disease and health that encompasses a broad range of biological and psychosocial issues. products. -- Formed a strategic alliance with Kaleida Health, the largest health system serving western New York
Western New York refers to the westernmost region of New York State. , which includes both financing and GE Medical Systems equipment. -- Ended the quarter with only three out of 1,200 Aviation Services aircraft on the ground, and finished placing all new aircraft ordered for 2003 and 2004. Consumer Finance -- Added more than $2 billion in assets by acquiring the Allbank personal and auto loan businesses from Bankgesellschaft Berlin AG. -- Teamed in the U.K. with Harrods, the world's leading luxury department store, and in Australia with Coles Myer, Australia's largest department store, to launch DualCard(TM), a new co-branded product offering the benefits of both a store card and MasterCard as well as enhanced in-store benefits and loyalty programs. -- Agreed to acquire GC Corporation, a subsidiary of Promise Co., Ltd., the third-largest personal lender in Japan, adding approximately $1 billion in assets and more than three million credit card holders. -- Signed a multi-year extension with Brooks Brothers Brooks Brothers is the oldest surviving men's clothier in the United States, founded in 1818. The privately owned company is owned by Retail Brand Alliance, a spinoff of Luxottica, and is headquartered on Madison Avenue in New York City. in the U.S. to continue private label credit card programs through 2006. Insurance -- Completed the sale of GE Edison Life and GE Auto & Home for $2.1 billion and a $500 million special dividend and agreed to sell a majority stake of Financial Guaranty Insurance Company in a transaction that values the company at approximately $2.15 billion, executing Insurance's plans to focus operations on segments with the highest growth potential -- targeted consumer retirement income and protection, selected commercial and reinsurance segments and mortgage insurance -- while redeploying capital elsewhere in GE. Specialty Materials -- Completed the simultaneous acquisition of OSi Specialties, an organosilicones business, from Crompton Corporation Crompton Corporation, formerly Crompton and Knowles, is a chemical research, production, sales and distribution company headquartered in Middlebury, Connecticut. The company produces specialty chemicals used for polymers, fire suppressants and retardants, pool and spa water and the sale of GESM's Specialty Chemicals business to Crompton. -- Agreed to sell its Superabrasives industrial diamond business to Littlejohn Fund II, a private investment firm. -- Reached a five-year agreement with Valero Energy Corporation Valero Energy Corporation (NYSE: VLO) is a Fortune 500 company based in San Antonio, Texas with 21,836 employees and annual revenue of more than $90 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined for GE Water Technologies to supply specialty chemicals and services, and provide a dedicated team of engineers, for comprehensive water and process treatment at Valero's 14 oil refineries on North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Transportation Systems -- Continued globalization efforts, shipping 20 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 modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, kits to Kazakhstan to provide significantly improved fuel efficiency, pulling capacity and engine life; in addition, won an order from Albania State Railways to modernize mod·ern·ize v. mo·dern·ized, mo·dern·iz·ing, mo·dern·iz·es v.tr. To make modern in appearance, style, or character; update. v.intr. To accept or adopt modern ways, ideas, or style. the Tirana-Durres line. -- Shipped seven pre-production GE Evolution Series(TM) locomotives This is a list of locomotives (classes, or individual locomotives) that currently have articles in Wikipedia.
rails has logged 167,000 revenue-producing service miles, representing more than two years of testing. Industrial Systems -- Launched GE StreetLab(R), a portable explosives and narcotics narcotics n. 1) techinically, drugs which dull the senses. 2) a popular generic term for drugs which cannot be legally possessed, sold, or transported except for medicinal uses for which a physician or dentist's prescription is required. identification system that can determine the composition of pills, liquids and visible powders. -- Introduced a new, advanced power converter (1) A device that changes one set of codes, modes, sequences or frequencies to a different set. See A/D converter. (2) A device that changes current from 60Hz to 50Hz and vice versa. for GE Wind Energy's 1.5 megawatt meg·a·watt n. Abbr. MW One million watts. meg  a·watt wind turbine that outperformsexisting converters. Consumer Products -- Launched a variety of new range and refrigeration refrigeration, process for drawing heat from substances to lower their temperature, often for purposes of preservation. Refrigeration in its modern, portable form also depends on insulating materials that are thin yet effective. products, including a complete line of bottom freezers and GE Profile(TM) Freestanding free·stand·ing adj. Standing or operating independently of anything else: a freestanding bell tower; a freestanding maternity clinic. Electric Convection Ranges, which feature all-electronic, glass-touch controls and a tri-ring burner A drive that writes write-once optical discs such as CD-Rs and DVD-Rs. A "burner" implies a one-time recording, but the term is erroneously used to refer to drives that "write" to re-recordable CD-RW and DVD-RW/+RW media as well. See burn, CD-R and DVD-R. , and which bake more evenly than any other leading brand. -- Won highest ranking from a leading consumer magazine for GE Profile(TM) dryers. GE (NYSE NYSE See: New York Stock Exchange : GE) is a diversified technology and services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://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. This document includes certain "forward-looking statements" within the meaning of 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. 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 political, economic, business, competitive, market and regulatory factors. More information about those factors is contained in GE's filings with the U.S. Securities and Exchange Commission. This presentation includes certain non-GAAP financial measures as defined under SEC rules. As required by SEC rules, we have provided a reconciliation of those measures to the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures, which is available in our GAAP Reconciliation file on our investor relations Investor relations The process by which the corporation communicates with its investors. website at: http://www.ge.com/en/company/investor/webcast/webcast_10102003.htm or http://www.ge.com/en/company/investor/secreport/reclass/ sec8k2003ge.htm. (Due to the length of this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. , it may be necessary to copy and paste To copy files from one location to another or to copy text and images from one document to another. All modern operating systems and applications have a copy and paste capability that is typically selected from an Edit menu. See cut and paste and Win Copy between windows. this hyperlink into your Internet browser's URL address field.) Forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the financial performance of GE have not been prepared or verified to the standards required by the UK City Code on Takeovers and Mergers City code on takeovers and mergers See: Dawn raid , including its requirements for reports by auditors and financial advisers.
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
Consolidated
-------------------------------
Third quarter ended September 30 2003 2002 V%
------------------------------------- ----------- ----------- -----
Revenues
Sales of goods and services $16,925 $18,048
Earnings of GECS before accounting
changes - -
GECS revenues from services 15,937 14,214
Other income 206 457
Revenues from FIN 46 entities 326 -
----------- -----------
Total revenues 33,394 32,719 2%
----------- -----------
Costs and expenses
Cost of sales, operating and
administrative expenses 20,232 19,731
Interest and other financial charges 2,607 2,773
Insurance losses and policyholder and
annuity benefits 4,093 4,227
Provision for losses on financing
receivables 1,061 640
Minority interest in net earnings of
consolidated affiliates 77 84
Expenses from FIN 46 entities 204 -
----------- -----------
Total costs and expenses 28,274 27,455 3%
----------- -----------
Earnings before income taxes and
accounting changes 5,120 5,264
Provision for income taxes (1,099) (1,177)
----------- -----------
Earnings before accounting changes $4,021 $4,087 (2)%
Cumulative effect of accounting changes (372) -
----------- -----------
Net earnings $3,649 $4,087 (11)%
=========== ===========
Per-share amounts before accounting
changes
Diluted earnings per share $0.40 $0.41 (2)%
Basic earnings per share $0.40 $0.41 (2)%
Per-share amounts after accounting
changes
Diluted earnings per share $0.36 $0.41 (12)%
Basic earnings per share $0.36 $0.41 (12)%
Dividends declared per share $0.19 $0.18
GE
-------------------------------
Third quarter ended September 30 2003 2002 V%
------------------------------------- ----------- ----------- -----
Revenues
Sales of goods and services $16,463 $17,386
Earnings of GECS before accounting
changes 2,207 1,551
GECS revenues from services - -
Other income 235 486
Revenues from FIN 46 entities - -
----------- -----------
Total revenues 18,905 19,423 (3)%
----------- -----------
Costs and expenses
Cost of sales, operating and
administrative expenses 14,136 14,024
Interest and other financial charges 282 212
Insurance losses and policyholder and
annuity benefits - -
Provision for losses on financing
receivables - -
Minority interest in net earnings of
consolidated affiliates 44 45
Expenses from FIN 46 entities - -
----------- -----------
Total costs and expenses 14,462 14,281 1%
----------- -----------
Earnings before income taxes and
accounting changes 4,443 5,142
Provision for income taxes (422) (1,055)
----------- -----------
Earnings before accounting changes $4,021 $4,087 (2)%
Cumulative effect of accounting changes (372) -
----------- -----------
Net earnings $3,649 $4,087 (11)%
=========== ===========
Financial Services (GECS)
-------------------------------
Third quarter ended September 30 2003 2002 V%
------------------------------------- ----------- ----------- -----
Revenues
Sales of goods and services $527 $779
Earnings of GECS before accounting
changes - -
GECS revenues from services 16,154 14,336
Other income - -
Revenues from FIN 46 entities 326 -
----------- -----------
Total revenues 17,007 15,115 13%
----------- -----------
Costs and expenses
Cost of sales, operating and
administrative expenses 6,290 5,891
Interest and other financial charges 2,442 2,645
Insurance losses and policyholder
and annuity benefits 4,093 4,227
Provision for losses on financing
receivables 1,061 640
Minority interest in net earnings
of consolidated affiliates 33 39
Expenses from FIN 46 entities 204 -
----------- -----------
Total costs and expenses 14,123 13,442 5%
----------- -----------
Earnings before income taxes and
accounting changes 2,884 1,673
Provision for income taxes (677) (122)
----------- -----------
Earnings before accounting changes $2,207 $1,551 42%
Cumulative effect of accounting
changes (339) -
----------- -----------
Net earnings $1,868 $1,551 20%
=========== ===========
Dollar amounts in millions; per-share amounts in dollars; unaudited.
Supplemental consolidating data are shown for "GE" and "Financial
Services (GECS)." Transactions between GE and Financial Services
(GECS) have been eliminated from the "consolidated" columns. See note
1 to the consolidated financial statements in the 2002 Annual Report
to Share Owners for further information about consolidation matters.
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
Consolidated
-------------------------------
Nine months ended September 30 2003 2002 V%
--------- --------- ----
Revenues
Sales of goods and services $51,210 $55,797
Earnings of GECS before accounting
changes - -
GECS revenues from services 45,278 40,302
Other income 409 598
Revenues from FIN 46 entities 326 -
--------- ---------
Total revenues 97,223 96,697 1%
--------- ---------
Costs and expenses
Cost of sales, operating and
administrative expenses 59,402 59,427
Interest and other financial
charges 7,886 7,590
Insurance losses and policyholder
and annuity benefits 12,334 11,465
Provision for losses on financing
receivables 2,799 2,087
Minority interest in net earnings
of consolidated affiliates 219 250
Expenses from FIN 46 entities 204 -
--------- ---------
Total costs and expenses 82,844 80,819 3%
--------- ---------
Earnings before income taxes and
accounting changes 14,379 15,878
Provision for income taxes (3,350) (3,847)
--------- ---------
Earnings before accounting changes $11,029 $12,031 (8)%
Cumulative effect of accounting
changes (587) (1,015)
--------- ---------
Net earnings $10,442 $11,016 (5)%
========= =========
Per-share amounts before accounting
changes
Diluted earnings per share $1.10 $1.20 (8)%
Basic earnings per share $1.10 $1.21 (9)%
Per-share amounts after accounting
changes
Diluted earnings per share $1.04 $1.10 (5)%
Basic earnings per share $1.04 $1.11 (6)%
Dividends declared per share $0.57 $0.54
GE
-------------------------------
Nine months ended September 30 2003 2002 V%
------------------------------------ --------- --------- ----
Revenues
Sales of goods and services $49,861 $53,593
Earnings of GECS before accounting
changes 5,479 4,535
GECS revenues from services - -
Other income 458 675
Revenues from FIN 46 entities - -
--------- ---------
Total revenues 55,798 58,803 (5)%
--------- ---------
Costs and expenses
Cost of sales, operating and
administrative expenses 41,885 43,065
Interest and other financial
charges 705 444
Insurance losses and policyholder
and annuity benefits - -
Provision for losses on financing
receivables - -
Minority interest in net earnings
of consolidated affiliates 123 137
Expenses from FIN 46 entities - -
--------- ---------
Total costs and expenses 42,713 43,646 (2)%
--------- ---------
Earnings before income taxes and
accounting changes 13,085 15,157
Provision for income taxes (2,056) (3,126)
--------- ---------
Earnings before accounting changes $11,029 $12,031 (8)%
Cumulative effect of accounting
changes (587) (1,015)
--------- ---------
Net earnings $10,442 $11,016 (5)%
========= =========
Financial Services (GECS)
-------------------------------
Nine months ended September 30 2003 2002 V%
------------------------------------ --------- --------- ----
Revenues
Sales of goods and services $1,582 $2,494
Earnings of GECS before accounting
changes - -
GECS revenues from services 45,853 40,615
Other income - -
Revenues from FIN 46 entities 326 -
--------- ---------
Total revenues 47,761 43,109 11%
--------- ---------
Costs and expenses
Cost of sales, operating and
administrative expenses 18,117 16,826
Interest and other financial charges 7,438 7,362
Insurance losses and policyholder
and annuity benefits 12,334 11,465
Provision for losses on financing
receivables 2,799 2,087
Minority interest in net earnings
of consolidated affiliates 96 113
Expenses from FIN 46 entities 204 -
------- -------
Total costs and expenses 40,988 37,853 8%
------- -------
Earnings before income taxes and
accounting changes 6,773 5,256
Provision for income taxes (1,294) (721)
------- -------
Earnings before accounting changes $5,479 $4,535 21%
Cumulative effect of accounting changes (339) (1,015)
---------------------------
Net earnings $5,140 $3,520 46%
===========================
Dollar amounts in millions; per-share amounts in dollars; unaudited.
Supplemental consolidating data are shown for "GE" and "Financial
Services (GECS)." Transactions between GE and Financial Services
(GECS) have been eliminated from the "consolidated" columns. See note
1 to the consolidated financial statements in the 2002 Annual Report
to Share Owners for further information about consolidation matters.
Summary of Operating Segments
----------------------------------------------------------------------
General Electric Company and Consolidated Affiliates
THIRD QUARTER THIRD QUARTER YTD
-------------------- --------------------
(Dollars in millions) 2003 2002 V% 2003 2002 V%
Revenues
Aircraft Engines $2,534 $2,721 (7) $7,645 $8,062 (5)
Commercial Finance 4,750 4,522 5 13,824 12,942 7
Consumer Finance 3,499 2,701 30 9,304 7,536 23
Consumer Products 2,075 2,116 (2) 6,053 6,236 (3)
Equipment Management 1,136 1,207 (6) 3,407 3,531 (4)
Industrial Products and
Systems 2,068 1,880 10 6,113 5,408 13
Insurance 6,824 6,197 10 19,984 17,228 16
Medical Systems 2,336 2,130 10 6,878 6,205 11
NBC 1,517 1,370 11 4,943 5,355 (8)
Plastics 1,297 1,329 (2) 3,860 3,928 (2)
Power Systems 4,199 5,123 (18) 12,927 16,920 (24)
Specialty Materials 789 689 15 2,244 1,698 32
Transportation Systems 569 521 9 1,686 1,597 6
All Other GECS 798 488 64 1,242 1,872 (34)
Corporate items and
eliminations (997) (275) U (2,887) (1,821)(59)
---------------- ----------------
Consolidated revenues $33,394 $32,719 2 $97,223 $96,697 1
================ ================
Segment profit (a)
Aircraft Engines $484 $512 (5) $1,518 $1,499 1
Commercial Finance 1,001 879 14 2,632 2,334 13
Consumer Finance 595 467 27 1,655 1,431 16
Consumer Products 114 97 18 391 356 10
Equipment Management 48 83 (42) 131 225 (42)
Industrial Products and
Systems 156 153 2 472 433 9
Insurance 604 327 85 1,624 938 73
Medical Systems 383 347 10 1,129 1,014 11
NBC 431 330 31 1,462 1,188 23
Plastics 100 224 (55) 271 706 (62)
Power Systems 984 1,418 (31) 2,914 4,880 (40)
Specialty Materials 115 56 105 279 197 42
Transportation Systems 109 91 20 292 268 9
All Other GECS (41) (205) 80 (563) (393)(43)
---------------- ----------------
Total segment profit 5,083 4,779 6 14,207 15,076 (6)
GE corporate items and
eliminations (358) 575 U (417) 525 U
GE interest and other
financial charges (282) (212)(33) (705) (444)(59)
GE provision for income
taxes (422) (1,055) 60 (2,056) (3,126) 34
---------------- ----------------
Earnings before accounting
changes 4,021 4,087 (2) 11,029 12,031 (8)
Cumulative effect of
accounting changes (372) - (587) (1,015)
---------------- ----------------
Consolidated net earnings $3,649 $4,087 (11) $10,442 $11,016 (5)
================ ================
(a) Segment profit excludes the effects of pension and other retiree
benefit plans, accounting changes and certain restructuring and
other charges. Segment profit includes or excludes interest and
other financial charges and segment income taxes according to how
segment management is measured - excluded in determining operating
profit for Aircraft Engines, Consumer Products, Industrial
Products and Systems, Medical Systems, NBC, Plastics, Power
Systems, Specialty Materials and Transportation Systems, but
included in determining net earnings for Commercial Finance,
Consumer Finance, Equipment Management, Insurance and All Other
GECS.
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