GE Reports Second-Quarter Earnings of $3.9 Billion with 11% Revenue Growth and 61% Year-to-Date Cash Flow Growth.FAIRFIELD, Conn. -- GE's second quarter 2004 earnings were $3.9 billion, 3% higher than second quarter 2003, the Company announced today. Excluding non-cash earnings from GE's principal pension plans, earnings increased 9%. "Our earnings per share for the second quarter of 38 cents exceeded our previous guidance of 37 cents, as nine of 11 businesses contributed double-digit improvements to earnings and first-half cash from operating activities grew 61% over last year," 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. "Orders continue to be strong, growing at 13%, with services orders up 29%. This is the best economy we've seen in years. "We completed major portfolio moves during the quarter, closing the Amersham acquisition, the 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. merger and the successful initial public offering of Genworth Financial Genworth Financial is an international financial services organization that offers a portfolio of primarily consumer-focused products through its various companies, including annuities, combination products, investment services, life insurance, long term care insurance, medicare . These changes, along with the continued build-out of our 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. , give GE a great set of businesses for the future. We continue to execute on our growth initiatives, with technology advances such as the GEnx jet engine and Jenbacher's co-generation systems; strong services growth across the board; global infrastructure and 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. wins in countries ranging from China to Kazakhstan to Latvia; and wins with customers as diverse as the U.S. Transportation Security Administration, Virgin America Virgin America is a U.S. based low-cost airline that began service on 8 August 2007. The airline's stated aim is to provide low-fare, high-quality service for "long-haul point-to-point service between major metropolitan cities on the Eastern and West Coast seaboards". , and viewers of 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. , 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. and Telemundo. "We're on track to deliver excellent operating performance this year, and as such we are further narrowing our full-year guidance to $1.55-$1.60 per share. We are building strong momentum for 2005 and remain confident of 10-15% earnings per share growth for next year." GE will discuss 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 and related charts are available at www.ge.com/investor. Second Quarter 2004 Financial Highlights --Earnings were $3.924 billion, up 3% over last year's $3.794 billion. 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. ) were $.38, the same as last year. Nine of GE's 11 businesses -- 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, , Commercial Finance, Consumer Finance, Consumer & Industrial, Equipment & Other Services, Healthcare, Infrastructure, NBC Universal and Transportation -- contributed double-digit improvements to earnings. A variance analysis of second quarter EPS follows the text of this release. --Revenues of $37.0 billion increased 11% from last year's $33.4 billion. Industrial sales increased 13% to $20.0 billion. Excluding GE Energy, which is in the final year of declining gas 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. sales, industrial sales were up 22%, reflecting the combined impact of the Amersham and NBC Universal transactions as well as the stronger economy. Financial services revenues of $17.1 billion were up 8% over last year. --Cash generated from GE's 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 ) in the first half of 2004 was $6.8 billion, up 61% over last year's $4.2 billion. This improvement reflects $1.8 billion of dividends from GE Capital Services (GECS GECS Global Education Consultancy Services (India) ), principally proceeds from the Genworth IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. . Industrial CFOA in the first half increased 27% over last year. The company's continuing focus on working capital and cash management leads GE to expect 10-15% growth in CFOA for the full year. "Over the past three years of tough economic conditions and strategic repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. , we've increased revenues and earnings every year, generated strong CFOA, and maintained our triple-A ratings; above all, we invested back into GE and made it a better company," Immelt said. "We now have a GE with leading technology, great service franchises, global breadth and depth, and a tremendous team of people who are passionate about helping our customers succeed. We are using all of GE's resources to identify and drive new organic growth with incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. returns on invested capital. We are very confident about our future." Second Quarter 2004 Business Highlights Healthcare --Completed the acquisition of 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). , creating a $14 billion U.K.-based global leader in healthcare diagnostics. --Increased total orders 42% over second quarter 2003 to $3.5 billion; excluding Amersham, orders grew 16% to $2.9 billion, driven by 55% growth in PET (positron emission tomography positron emission tomography: see PET scan. positron emission tomography (PET) Imaging technique used in diagnosis and biomedical research. ) orders to more than $120 million, and 21% services growth to nearly $1.4 billion. --Increased China orders 25% over last year to $166 million, with strength in most modalities Modalities The factors and circumstances that cause a patient's symptoms to improve or worsen, including weather, time of day, effects of food, and similar factors. . --Realized strong synergies with key customers between GE diagnostic imaging and Amersham contrast agents, and achieved double-digit growth in all Biosciences businesses. Transportation --Received aircraft engine, 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 services orders in the quarter totaling $3.4 billion, with 33% growth in services orders over last year driven by strong spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. orders for commercial and military engines and aeroderivatives. --Selected by Boeing as one of two companies to power its new 7E7 Dreamliner with the new GEnx engine, positioning GE for placement on as many as 2,000-3,000 aircraft over the next 20 years. --Through CFM (Cubic Feet per Minute) The measurement of air flow. Cooling fans are rated in CFM. International (CFMI), a 50/50 joint company between GE and Snecma Moteurs of France, was selected by Virgin America to provide engines for its 33-aircraft launch fleet. --Through CFMI, was selected by the U.S. Navy to power 109 multi-mission maritime aircraft that will replace its P-3 fleet. --Received a $150 million order from KTZ KTZ Kapitein Ter Zee (Dutch) KTZ Keratonazole , Kazakhstan's national railroad railroad or railway, form of transportation most commonly consisting of steel rails, called tracks, on which freight cars, passenger cars, and other rolling stock are drawn by one locomotive or more. , for 200 locomotive 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 be shipped through 2006. --Shipped nine GE Evolution Series(TM) locomotives This is a list of locomotives (classes, or individual locomotives) that currently have articles in Wikipedia.
Energy --Signed new contractual service agreements during the quarter totaling more than $750 million, increasing the number of gas turbines and sites covered at the end of the quarter by 12% over the end of second quarter 2003. --Agreed to acquire ChevronTexaco's gasification gas·i·fy tr. & intr.v. gas·i·fied, gas·i·fy·ing, gas·i·fies To convert into or become gas. gas technology business, expanding GE's capabilities in the "cleaner coal" segment of power generation. --Received a contract for GE Jenbacher to provide 22 complete gas engine cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. systems for a Ukrainian project, the largest of its kind in the world in terms of total power output, to convert coal mine gas into energy and help reduce methane methane (mĕth`ān), CH4, colorless, odorless, gaseous saturated hydrocarbon; the simplest alkane. It is less dense than air, melts at −184°C;, and boils at −161.4°C;. emissions. --Received orders for 100 1.5-megawatt wind turbines, including 33 for the Fuesanta project in Spain. --Continued to win business in China, receiving a contract to supply three hydro hy·dro adj. Hydroelectric. n. pl. hy·dros 1. Hydroelectric power. 2. A hydroelectric power plant. turbines and additional equipment for the Sinanjiang River Hydropower hy·dro·pow·er n. Hydroelectric power. Station in Yunnan Province Noun 1. Yunnan province - a province of southern China Yunnan Cathay, China, Communist China, mainland China, People's Republic of China, PRC, Red China - a communist nation that covers a vast territory in eastern Asia; the most populous country in the world , as well as an order from the China Southern Power Grid Co. for systems to increase the power transfer capability of one of its transmission corridors. --Shipped 29 heavy-duty gas turbines from Greenville, S.C. and Belfort, France, compared with 42 in second quarter 2003. --Agreed to acquire BHA BHA butylated hydroxyanisole, an antioxidant used in foods, cosmetics, and pharmaceuticals that contain fats or oils. BHA n. A white, waxy phenolic antioxidant used to preserve fats and oils, especially in foods. Group Holdings, Inc., a leading provider of air quality control products, and the assets of three business units of S.D. Myers, Inc., to enhance Energy's transformer transformer, electrical device used to transfer an alternating current or voltage from one electric circuit to another by means of electromagnetic induction. services offerings. Commercial Finance --Acquired more than $2 billion in assets from Boeing Capital Boeing Capital is a subsidiary of The Boeing Company, providing asset-based leasing and lending services. Boeing Capital is made up of two divisions, Aircraft Financial Services and The Space & Defense Financial Services History Corp., enabling broader financial solutions to be offered to more than 170 new customers. --Acquired Haslemere NV, a major U.K.-based multi-sector commercial property company with $700 million of assets located primarily in London. --Acquired IKON Office Solutions' U.S. leasing portfolio, adding $2.0 billion in equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
--Completed the largest-ever aircraft engine financing deal in China with China Eastern Airlines China Eastern Airlines Corporation Limited (Simplified Chinese: 中国东方航空股份有限公司) (SSE: B>600115 , leased 15 new Airbus A320s to Virgin America, and ended the quarter with none of Aviation Services' 1,300-plus aircraft on the ground. --Increased Commercial Finance's presence in the Japanese real estate market by $500 million by acquiring Alte Co., an Osaka, Japan-based real estate company. --Acquired Ace Sogo Lease from Nissan Diesel Motor, the fourth-largest Japanese truck/bus manufacturer, adding more than $400 million in assets and expanding Ace's equipment finance offerings. Consumer Finance --Teamed with eBay and its subsidiary PayPal Inc. to launch new consumer and commercial credit programs that help U.S. online buyers fund their purchases through PayPal and provide online sellers with access to lines of credit and working capital for growth. --Completed the acquisition of WMC WMC Winter Music Conference WMC Weill Medical College (Cornell University) WMC Wisconsin Manufacturers and Commerce (Madison, WI) WMC Westchester Medical Center WMC Western Mining Corporation Finance Co., a leading U.S wholesale lender, adding U.S. new-home financing solutions to Consumer Finance's global mortgage capabilities. --Signed a five-year agreement with Drexel Heritage, one of the world's premier furniture manufacturers, to provide a new retail credit program for its U.S. customers. --Completed the acquisition of Latvian sales finance and auto loan provider RD Lizinga Grupa, bringing Consumer Finance to a 40th country and creating a new platform in the Baltic region For other uses, see Baltic (disambiguation). The Baltic region is an ambiguous term that refers to slightly different combinations of countries in the general area surrounding the Baltic Sea. . --Launched the Payroll Card, a debit-based MasterCard(R) product that provides a simple, cost-saving and convenient alternative to payroll checks for companies that pay millions of employees, contractors and temporary workers in the U.S. who don't have a checking account. NBC Universal --Completed the merger of NBC and Vivendi Universal Entertainment, creating NBC Universal, one of the world's leading media companies. --Brought in total advertising commitments during May's "upfront" ad sales period of more than $5 billion, leading the major broadcast networks and seeing strong gains at Bravo and Telemundo, the fastest-growing cable and broadcast networks in the U.S. --Won the quarter in the key demographic of adults 18-49 by a margin of nearly 10% over the nearest competitor, led by "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. ," television's No. 1 series of the quarter in that demographic. --Won the May sweeps among adults 18-49 for NBC's ninth May win in the last 10 years, and drew the largest average audience (52.5 million) for any entertainment telecast in six years with the May 6 finale For the music notation program, see . A finale (italian word) is a closing part, act or movement of a dramatic or musical composition, or more generally any event or procedure with a dramatically concluding effect. of "Friends." --Extended 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. delivering a 47% margin of victory over his nearest competitor 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. and Carson Daly Carson Jones Daly (born June 22, 1973 in Santa Monica, California) is an American television personality. He became known for being a VJ on MTV's Total Request Live. He currently hosts Last Call with Carson Daly on NBC. setting second-quarter ratings records. --Doubled Telemundo's weekday prime-time ratings among adults 18-49 over last year, with the highest ratings in that demographic in a decade. --Doubled Bravo's average audience among adults 18-49 over last year, and increased USA Network's adults 25-54 audience by 13 percent. Infrastructure --Successfully completed a 30-day passenger rail pilot with the U.S. Transportation Security Administration (TSA TSA See tax-sheltered annuity (TSA). ) of the GE EntryScan3, a walk-through explosives detector detector: see particle detector. that detects microscopic microscopic /mi·cro·scop·ic/ (mi?kro-skop´ik) 1. of extremely small size; visible only by the aid of the microscope. 2. pertaining or relating to a microscope or to microscopy. traces of explosives in seconds, and launched a similar pilot at five U.S. metropolitan airports. --Introduced nearly 50 new high-technology products, including a "ruggedized" fiber optic security camera that can withstand some of the harshest environments and a factory automation software platform that integrates with other original equipment manufacturers' systems. --Moved toward completing the acquisition of InVision Technologies InVision Technologies, Inc. was a publicly traded company based in Newark, California, that manufactured and sold airport security screening devices to detect explosives in passenger baggage. One of its most well-known products is the CTX explosive-detection device. , Inc. with InVision shareowner share·own·er n. See shareholder. Noun 1. shareowner - someone who holds shares of stock in a corporation shareholder, stockholder investor - someone who commits capital in order to gain financial returns approval; InVision's CT (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. ) -based scanners will complement GE's trace explosives detection systems. --Received a multi-year order from the U.S. Department of Defense for an advanced jet fuel additive additive In foods, any of various chemical substances added to produce desirable effects. Additives include such substances as artificial or natural colourings and flavourings; stabilizers, emulsifiers, and thickeners; preservatives and humectants (moisture-retainers); and from Infrastructure's water and process technologies unit that helps improve the quality of standard aircraft fuel from any global source, thereby improving operability Operability is the ability to keep a system in a functioning and operating condition. In a computing systems environment with multiple systems this includes the ability of products, systems and business processes to work together to accomplish a common task such as finding and and reducing costs. Advanced Materials --Continued to expand into high-growth segments with "wing-to-wing" technologies, including the use of advanced GE Lexan(R) SLX SLX Student Loan Xpress SLX Smartlet Xml SLX Secure Links SLX Super Luxe (TM), Geloy XTW(R) and Ultem(R) engineered resins resins, n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations. in the global automobile segment to reduce need for paint, eliminate secondary operations for manufacturing efficiency and lower cost, and increase design freedom. --Launched new NXT NXT Next (R) silane silane or silicon hydride Any of a series of inorganic compounds of silicon and hydrogen with covalent bonds and the general chemical formula SinH(2n + 2). technology for tires, which lowers manufacturers' production costs and improves fuel efficiency and environmental emissions. --Introduced new Lexan Excel A full-featured spreadsheet for Windows and the Macintosh from Microsoft. It can link many spreadsheets for consolidation and provides a wide variety of business graphics and charts for creating presentation materials. and Thermoclear(R) Solar Control Infrared An invisible band of radiation at the lower end of the visible light spectrum. With wavelengths from 750 nm to 1 mm, infrared starts at the end of the microwave spectrum and ends at the beginning of visible light. sheet UV protection products for the building and construction segment that increase level of light transmission by up to 60 percent and reduce interior heat build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. by up to 40 percent. --Announced new Lexan EXL EXL Ethernet Accelerator EXL Expiration Notice (insurance) EXL Expression List EXL Extended Learning (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 applications with improved impact strength, durability and design flexibility for China's mobile phone and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. segments. --Announced China Palette (1) In computer graphics, a range of colors used for display and printing. See color palette. (2) A collection of on-screen painting tools. (3) A toolbar that contains a set of functions for any kind of application. palette - colour palette (R), an exclusive collection of Visualfx(R) resins designed specifically for China's rapidly growing consumer products segment. Insurance --Completed the initial public offering of 30% of the equity of Genworth Financial, Inc., releasing more than $2.5 billion in equity capital for investment in growth initiatives and reduction of "parent-supported debt." --Focused Employers 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. Corp. (ERC (database) ERC - An extended entity-relationship model. ) on specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. market segments for which it can provide differentiated services Offerings that can be classified by type, or quality, of service. For example, a differentiated services network could prioritize real time traffic for a higher fee. , including regional property and casualty reinsurance, and completed five new reinsurance treaties Reinsurance Treaty (June 18, 1887) Secret agreement between Germany and Russia. Arranged by Otto von Bismarck after the collapse of the Three Emperors' League, it provided that each party would remain neutral if either became involved in a war with a third nation, and that with regional companies in Australia and 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. . Consumer & Industrial --Increased unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of high-end Profile(R) and 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) appliances 21% over second quarter 2003. --Launched several new products, including the new Profile(R) ClimateKeeper2 dual-evaporator refrigerator, Monogram(R) undercounter 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. modules, GE Xensation(TM) auto lighting and several stainless steel stainless steel: see steel. stainless steel Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat. appliance upgrades. Equipment and Other Services --Announced five new sensor A device that measures or detects a real-world condition, such as motion, heat or light and converts the condition into an analog or digital representation. An optical sensor detects the intensity or brightness of light, or the intensity of red, green and blue for color systems. capabilities for GE's VeriWise(TM) asset-tracking technology, which helps over-the-road trailer customers better meet productivity and security goals, and formed an Asset Intelligence business unit to develop additional markets for VeriWise technology. --Signed a joint development agreement with Science Applications International Corporation, a leading security technology firm with commercial and government customers, to accelerate the application of Veriwise to sea containers Sea Containers may refer to:
GE (NYSE NYSE See: New York Stock Exchange :GE) is a diversified diversified (di·verˑ·s technology, media and financial 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 contains "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. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of GE. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that are difficult to predict. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory and other factors. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise. 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 this press release.
General Electric Company and Consolidated Affiliates
Second Quarter 2004 Earnings Per Share (EPS) Dynamics
EPS
---
Second quarter 2003 reported $ 0.38
Ongoing operations (incl. Energy) 0.04 Solid growth (+11%)
Pension (0.02) Non-cash and as expected
2003 Insurance dispositions (0.01) FGIC, Edison, U.S. Auto
----------
0.39
Deal impact...Amersham, NBC (0.01) Earnings with more
Universal, Genworth shares and lower
Insurance earnings
----------
$ 0.38 ...Above Guidance
2Q Events
- Genworth transaction impact Worse than expected
($336mm)
- Amersham deal-related costs Slightly better than
($163mm) expected
+ Tax settlements $428mm Better than expected
Effect of 2Q events -
----------
Second quarter 2004 reported $ 0.38
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
Consolidated
------------------------
Second quarter
ended June 30 2004 2003 V%
----------------- -------- -------- ------
Revenues
Sales of goods and services $20,655 $18,118
Earnings of GECS - -
GECS revenues from services 16,056 15,107
Other income 324 148
-------- --------
Total revenues 37,035 33,373 11%
-------- --------
Costs and expenses
Cost of sales, operating and
administrative expenses 24,610 20,374
Interest and other financial
charges 2,750 2,683
Insurance losses and
policyholder and annuity
benefits 3,744 4,256
Provision for losses on
financing receivables 1,004 978
Minority interest in net
earnings of consolidated
affiliates 187 72
-------- --------
Total costs and expenses 32,295 28,363 14%
-------- --------
Earnings before income taxes 4,740 5,010
Provision for income taxes (816) (1,216)
-------- --------
Net earnings $3,924 $3,794 3%
======== ========
Per-share amounts
Diluted earnings per share $0.38 $0.38 0%
Basic earnings per share $0.38 $0.38 0%
Dividends declared per share $0.20 $0.19
GE
------------------------
Second quarter
ended June 30 2004 2003 V%
----------------- -------- -------- ------
Revenues
Sales of goods and services $19,995 $17,640
Earnings of GECS 1,696 1,602
GECS revenues from services - -
Other income 328 147
-------- --------
Total revenues 22,019 19,389 14%
-------- --------
Costs and expenses
Cost of sales, operating and
administrative expenses 17,480 14,414
Interest and other financial
charges 49 215
Insurance losses and
policyholder and annuity
benefits - -
Provision for losses on
financing receivables - -
Minority interest in net
earnings of consolidated
affiliates 111 47
-------- --------
Total costs and expenses 17,640 14,676 20%
-------- --------
Earnings before income taxes 4,379 4,713
Provision for income taxes (455) (919)
-------- --------
Net earnings $3,924 $3,794 3%
======== ========
Financial Services (GECS)
------------------------
Second quarter
ended June 30 2004 2003 V%
----------------- -------- -------- ------
Revenues
Sales of goods and services $728 $568
Earnings of GECS - -
GECS revenues from services 16,405 15,319
Other income - -
-------- --------
Total revenues 17,133 15,887 8%
-------- --------
Costs and expenses
Cost of sales, operating and
administrative expenses 7,370 6,196
Interest and other financial
charges 2,818 2,533
Insurance losses and
policyholder and annuity
benefits 3,808 4,256
Provision for losses on
financing receivables 1,004 978
Minority interest in net
earnings of consolidated
affiliates 76 25
-------- --------
Total costs and expenses 15,076 13,988 8%
-------- --------
Earnings before income taxes 2,057 1,899
Provision for income taxes (361) (297)
-------- --------
Net earnings $1,696 $1,602 6%
======== ========
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 GECS have been
eliminated from the "consolidated" columns. See note 1 to the
consolidated financial statements in the 2003 Annual Report to
Shareowners for further information about consolidation matters.
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
Consolidated
------------------------
Six months ended
June 30 2004 2003 V%
----------------- -------- -------- ------
Revenues
Sales of goods and services $37,765 $34,285
Earnings of GECS before
accounting change - -
GECS revenues from services 32,159 29,341
Other income 461 203
-------- --------
Total revenues 70,385 63,829 10%
-------- --------
Costs and expenses
Cost of sales, operating and
administrative expenses 46,302 39,170
Interest and other financial
charges 5,560 5,279
Insurance losses and
policyholder and annuity
benefits 7,332 8,241
Provision for losses on
financing receivables 1,959 1,738
Minority interest in net
earnings of consolidated
affiliates 270 142
-------- --------
Total costs and expenses 61,423 54,570 13%
-------- --------
Earnings before income taxes and
accounting change 8,962 9,259
Provision for income taxes (1,798) (2,251)
-------- --------
Earnings before accounting
change 7,164 7,008 2%
Cumulative effect of accounting
change - (215)
-------- --------
Net earnings $7,164 $6,793 5%
======== ========
Per-share amounts before
accounting change
Diluted earnings per share $0.69 $0.70 (1)%
Basic earnings per share $0.70 $0.70 0%
Per-share amounts after
accounting change
Diluted earnings per share $0.69 $0.68 1%
Basic earnings per share $0.70 $0.68 3%
Dividends declared per share $0.40 $0.38
GE
------------------------
Six months ended
June 30 2004 2003 V%
----------------- -------- -------- ------
Revenues
Sales of goods and services $36,675 $33,398
Earnings of GECS before
accounting change 3,541 3,272
GECS revenues from services - -
Other income 467 223
-------- --------
Total revenues 40,683 36,893 10%
-------- --------
Costs and expenses
Cost of sales, operating and
administrative expenses 32,161 27,749
Interest and other financial
charges 288 423
Insurance losses and
policyholder and annuity
benefits - -
Provision for losses on
financing receivables - -
Minority interest in net
earnings of consolidated
affiliates 148 79
-------- --------
Total costs and expenses 32,597 28,251 15%
-------- --------
Earnings before income taxes and
accounting change 8,086 8,642
Provision for income taxes (922) (1,634)
-------- --------
Earnings before accounting
change 7,164 7,008 2%
Cumulative effect of accounting
change - (215)
-------- --------
Net earnings $7,164 $6,793 5%
======== ========
Financial Services (GECS)
------------------------
Six months ended
June 30 2004 2003 V%
----------------- -------- -------- ------
Revenues
Sales of goods and services $1,304 $1,055
Earnings of GECS before
accounting change - -
GECS revenues from services 32,772 29,699
Other income - -
-------- --------
Total revenues 34,076 30,754 11%
-------- --------
Costs and expenses
Cost of sales, operating and
administrative expenses 14,657 11,827
Interest and other financial
charges 5,489 4,996
Insurance losses and
policyholder and annuity
benefits 7,432 8,241
Provision for losses on
financing receivables 1,959 1,738
Minority interest in net
earnings of consolidated
affiliates 122 63
-------- --------
Total costs and expenses 29,659 26,865 10%
-------- --------
Earnings before income taxes and
accounting change 4,417 3,889
Provision for income taxes (876) (617)
-------- --------
Earnings before accounting
change 3,541 3,272 8%
Cumulative effect of accounting
change - -
-------- --------
Net earnings $3,541 $3,272 8%
======== ========
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 GECS have been
eliminated from the "consolidated" columns. See note 1 to the
consolidated financial statements in the 2003 Annual Report to
Shareowners for further information about consolidation matters.
Summary of Operating Segments
-----------------------------
General Electric Company and Consolidated Affiliates
SECOND QUARTER FIRST HALF
--------------------- ---------------------
(Dollars in millions) 2004 2003 V% 2004 2003 V%
Revenues
Advanced Materials $ 2,048 $ 1,743 17 $ 3,933 $ 3,419 15
Commercial Finance 5,732 5,180 11 11,123 9,956 12
Consumer Finance 3,830 3,046 26 7,419 5,805 28
Consumer & Industrial 3,490 3,282 6 6,587 6,174 7
Energy 4,118 4,655 (12) 7,983 9,031 (12)
Equipment & Other
Services 2,017 869 F 4,027 1,833 F
Healthcare 3,372 2,402 40 5,867 4,542 29
Infrastructure 862 760 13 1,638 1,436 14
Insurance 5,554 6,792 (18) 11,507 13,160 (13)
NBC Universal 2,867 1,955 47 4,449 3,426 30
Transportation 3,903 3,389 15 7,308 6,368 15
Corporate items and
eliminations (758) (700) (8) (1,456) (1,321) (10)
---------------- ----------------
Consolidated revenues $37,035 $33,373 11 $70,385 $63,829 10
================ ================
Segment profit (a)
Advanced Materials $ 161 $ 134 20 $ 332 $ 256 30
Commercial Finance 975 832 17 1,930 1,702 13
Consumer Finance 600 514 17 1,202 1,060 13
Consumer & Industrial 204 173 18 353 301 17
Energy 634 1,057 (40) 1,284 1,955 (34)
Equipment & Other
Services 68 (252) F (54) (510) 89
Healthcare 584 440 33 923 746 24
Infrastructure 134 105 28 247 199 24
Insurance 53 508 (90) 463 1,020 (55)
NBC Universal 768 688 12 1,162 1,031 13
Transportation 810 686 18 1,447 1,242 17
---------------- ----------------
Total segment profit 4,991 4,885 2 9,289 9,002 3
GE corporate items and
eliminations (563) 43 U (915) 63 U
GE interest and other
financial charges (49) (215) 77 (288) (423) 32
GE provision for income
taxes (455) (919) 50 (922) (1,634) 44
---------------- ----------------
Earnings before accounting
change 3,924 3,794 3 7,164 7,008 2
Cumulative effect of
accounting change - - - (215)
---------------- ----------------
Consolidated net earnings $ 3,924 $ 3,794 3 $ 7,164 $ 6,793 5
================ ================
(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/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 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 Financial Services
billions) Consolidated GE (GECS)
------------------ ------------------ -------------------
6/30/04 12/31/03 6/30/04 12/31/03 6/30/04 12/31/03
-------- --------- -------- --------- --------- ---------
Cash &
marketable
securities $133.1 $135.0 $3.1 $2.0 $130.5 $133.2
Receivables 13.3 10.7 13.4 11.0 - -
Inventories 9.6 8.8 9.4 8.6 0.2 0.2
GECS
financing
receivables 252.7 247.9 - - 252.7 247.9
Plant &
equipment 61.3 53.4 16.4 14.6 44.9 38.8
Investment in
GECS - - 45.9 45.3 - -
Goodwill &
intangible
assets 80.9 55.0 53.3 30.2 27.6 24.8
Other assets 146.2 136.7 37.7 30.4 113.0 109.6
-------- --------- -------- --------- --------- ---------
Total assets $697.1 $647.5 $179.2 $142.1 $568.9 $554.5
======== ========= ======== ========= ========= =========
Borrowings $335.7 $329.7 $12.2 $10.9 $325.3 $320.3
Insurance
reserves 137.8 136.3 - - 138.1 136.3
Other
liabilities
and minority
interest 125.3 102.3 68.7 52.0 59.6 52.6
Shareowners'
equity 98.3 79.2 98.3 79.2 45.9 45.3
-------- --------- -------- --------- --------- ---------
Total
liabilities
and equity $697.1 $647.5 $179.2 $142.1 $568.9 $554.5
======== ========= ======== ========= ========= =========
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
consolidated financial statements in the 2003 Annual Report to
Shareowners for further information about consolidation matters.
Note: Certain balances have been reclassified to reflect the inclusion
of assets and liabilities of FIN 46 entities in their respective line
items, previously reported as "Consolidated, liquidating
securitization entities."
Financial Measures That Supplement GAAP
----------------------------------------------------------------------
General Electric Company and Consolidated Affiliates
We sometimes refer to data derived from consolidated financial
information but not required by GAAP to be presented in financial
statements. Certain of these data are considered "non-GAAP financial
measures" under SEC regulations. Specifically, we have referred to:
-- Second quarter 2004 earnings growth, excluding the non-cash
earnings from GE's principal pension plans in the second quarters
of 2003 and 2004;
-- Second quarter 2004 industrial sales growth, excluding the Energy
business in the second quarters of 2003 and 2004; and
-- Growth in Industrial CFOA in the first half of 2004.
Reconciliation of these non-GAAP financial measures to their most
directly comparable GAAP financial measures - reported earnings,
industrial sales and cash from operating activities - follow.
SECOND QUARTER ENDED JUNE 30
--------------------------------
(Dollars in millions) 2004 2003 V%
---------- ---------- --------
Net earnings $ 3,924 $ 3,794
Less: Non-cash earnings from GE's
principal pension plans 14 202
---------- ----------
Earnings excluding pension $ 3,910 $ 3,592 9
========== ==========
Industrial sales as reported $ 19,995 $ 17,640
Less: GE Energy sales 4,028 4,597
---------- ----------
Industrial sales excluding GE Energy $ 15,967 $ 13,043 22
========== ==========
SIX MONTHS ENDED JUNE 30
--------------------------------
2004 2003 V%
---------- ---------- --------
Cash from GE's operating activities
as reported $ 6,817 $ 4,244
Less: GECS dividends 1,842 328
---------- ----------
Cash from GE's operating activities
excluding dividends from GECS
(Industrial CFOA) $ 4,975 $ 3,916 27
========== ==========
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 2004 earnings without the decline in non-cash
earnings from our principal pension plans. Similarly, we believe
presentation of second quarter 2004 growth in industrial sales without
the decline in gas turbine sales is useful to investors. We also
believe that investors would find it useful to compare our first half
2004 operating cash flow against our first half 2003 operating cash
flow without the impact of GECS dividends, principally proceeds from
the Genworth initial public offering in 2004.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion