GE Reports Third-Quarter Earnings of $4.1 Billion with 15% Revenue Growth, 27% Orders Growth and 32% Year-to-Date Cash Flow Growth.FAIRFIELD Fairfield. 1 City (1990 pop. 12,200), Jefferson co., N central Ala., an industrial suburb of Birmingham; inc. 1919. Founded (1910) by the United States Steel Corp., its steel industry has greatly declined, negatively affecting the city's economy. , Conn. -- GE's third quarter 2004 earnings were $4.051 billion, 1% higher than last year's third quarter before the effect of a required accounting change in 2003, the Company announced today. "We continued our excellent operating performance in the third quarter and built momentum for future growth," 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 delivered $.38 per share despite approximately $300 million after tax of hurricane-related insurance losses. Excluding the impact of our insurance portfolio 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. and earnings from our principal pension plans, earnings grew 13% and earnings per share grew 6%. "The economy we see continues to be very strong, with our total orders for the quarter up 27%. Eight of our 11 businesses delivered at least double-digit earnings growth with continued strong performance on cash flow from operating activities. GE Energy performed as expected, and we saw real earnings momentum at Transportation, Commercial Finance, Consumer Finance and in services across our businesses. "Our cash performance was exceptional, with 32% growth year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. . This reflects our continued focus on cash management and larger dividends from our 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. businesses. We are also ahead of our plan to reduce the 'parent-supported' debt of our financial services businesses. "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. and GE Healthcare GE Healthcare is a $18 billion (USD) unit of General Electric (GE). It employs more than 46,000 people worldwide and is headquartered in Chalfont St. Giles, Buckinghamshire, United Kingdom. GE Healthcare is the first GE business segment headquartered outside the United States. both made excellent progress integrating their respective major acquisitions. NBC Universal made full use of its new cable networks and produced a terrific Olympics Olympics Sports medicine An international competition among (traditionally) nonprofessional athletes trained in a particular summer or winter sport, which is held every 4 yrs in a selected city. See Paralympics, Special Olympics, World Medical Games. broadcast watched by more than 200 million Americans. Healthcare launched a new molecular diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler unit that combines the strengths of Amersham and GE Medical Systems. "We also continued to invest in our growth initiatives, with launches of new technology such as Healthcare's Vivid i(TM) portable 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 ; global growth such as Consumer Finance's entry into Russia and expansion in Korea; and significant customer wins for 600 of our low-emission and fuel-efficient GE Evolution Series(TM) locomotives This is a list of locomotives (classes, or individual locomotives) that currently have articles in Wikipedia.
"This continued performance," Immelt said, "further strengthens our confidence in our outlook for double-digit earnings growth in the fourth quarter of 2004 and in 2005." GE will discuss third 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. Third Quarter 2004 Financial Highlights
-- Earnings of $4.051 billion were up 1% from last year's $4.021
billion before the effect of a required accounting change in
2003. Eight of GE's 11 businesses -- Commercial Finance,
Consumer Finance, Consumer & Industrial, Equipment & Other
Services, Healthcare, Infrastructure, NBC Universal and
Transportation -- contributed at least double-digit earnings
growth. A decline in earnings from Insurance reflected the
exit from several businesses and hurricane losses.
Earnings per share (EPS) before the accounting change were
$.38, down from last year's $.40, reflecting dilution from
additional shares issued in connection with the Amersham and
Vivendi Universal Entertainment transactions.
-- Revenues were $38.3 billion, 15% higher than last year's $33.4
billion. Industrial sales increased 27% to $21.0 billion,
reflecting the combined impact of acquisitions, the stronger
economy and the Olympics broadcasts by NBC Universal. Organic
industrial sales grew 12%. Combined Commercial Finance and
Consumer Finance revenues grew 15% over last year to $10.0
billion, while total financial services revenues grew 3% to
$17.5 billion, principally reflecting the reduction in the
company's insurance businesses.
-- Cash generated from GE's operating activities (CFOA) in the
first nine months of 2004 was $9.7 billion, up 32% over last
year's $7.4 billion. Special dividends from GE Capital
Services, from proceeds of business dispositions, were up $.8
billion. Industrial CFOA in the first nine months increased
25% over last year. GE expects approximately 15% growth in
CFOA for the full year.
-- Net earnings were $4.051 billion in third quarter 2004, up 11%
from $3.649 billion in third quarter 2003, when the company
recorded a non-cash transition charge of $372 million ($.04
per share) upon adoption of FASB Interpretation No. 46, which
required the consolidation of certain entities by companies
that do not control those entities.
"We have strong momentum going into the fourth quarter, and we are narrowing our earnings target for 2004 to $1.57-$1.60 per share, the high end of our range," Immelt said. "We also remain confident that we will achieve 10-15% earnings per share growth in 2005. We have a terrific set of businesses, great people to lead them and excellent prospects for the future." Third Quarter 2004 Business Highlights Healthcare --Increased total orders 42% over third quarter 2003 to $3.4 billion; excluding Amersham, orders grew 15% to $2.8 billion driven by 41% 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 and 7% services growth. --Launched the revolutionary LightSpeed VCT VCT Voluntary Counseling and Testing VCT Vinyl Composition Tile VCT Saint Vincent and the Grenadines (ISO Country code) VCT Venture Capital Trust (UK fiscal status) (TM), an ultra-high speed 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. ) scanner (1) See also antivirus program. (2) An optical device that reads a printed page or transparency and converts it into a graphics image for the computer. The scanner does not recognize or differentiate in any manner the content of the material it is scanning. that can capture images of the heart and coronary arteries Coronary arteries The two main arteries that provide blood to the heart. The coronary arteries surround the heart like a crown, coming out of the aorta, arching down over the top of the heart, and dividing into two branches. in less than five heartbeats. --Announced the development of the Vivid i(TM), the world's first miniaturized cardiovascular cardiovascular /car·dio·vas·cu·lar/ (-vas´ku-ler) pertaining to the heart and blood vessels. car·di·o·vas·cu·lar adj. Abbr. ultrasound system, which offers the functionality and performance of full-featured, larger-scale ultrasound devices in a portable "stethoscope stethoscope (stĕth`əskōp') [Gr.,=chest viewer], instrument that enables the physican to hear the sounds made by the heart, the lungs, and various other organs. The earliest stethoscope, devised by the French physician R. T. H. of the future." --Helped open Saint Francis Saint Francis, city, United States Saint Francis, city (1990 pop. 9,245), Milwaukee co., SE Wis., a residential suburb of Milwaukee on Lake Michigan; inc. 1951. There is meat processing and the manufacture of plastic and metal products. Heart Hospital in Tulsa, Oklahoma Tulsa is the second-largest city in the state of Oklahoma and 45th-largest in the United States. With an estimated population of 382,872 in 2006,[1] it is the principal municipality of the Tulsa Metropolitan Statistical Area, a region of 897,752 residents projected to , the world's most advanced all-digital heart hospital, which integrates GE's leading cardiac imaging, picture archiving and communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. into a comprehensive, seamless workflow The automatic routing of documents to the users responsible for working on them. Workflow is concerned with providing the information required to support each step of the business cycle. . --In conjunction with The University of Illinois at Chicago This article is about the University of Illinois at Chicago. For other uses, see University of Illinois at Chicago (disambiguation). UIC participates in NCAA Division I Horizon League competition as the UIC Flames in several sports, most notably Basketball. , announced the world's most powerful MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. (magnetic resonance imaging magnetic resonance imaging (MRI), noninvasive diagnostic technique that uses nuclear magnetic resonance to produce cross-sectional images of organs and other internal body structures. ) machine for human studies, ushering in Noun 1. ushering in - the introduction of something new; "it signalled the ushering in of a new era" first appearance, introduction, debut, entry, launching, unveiling - the act of beginning something new; "they looked forward to the debut of their new product line" a new age of metabolic met·a·bol·ic adj. Of, relating to, or resulting from metabolism. Metabolic Refers to the chemical processes of an organ or organism. imaging that will help researchers understand the workings of the human brain, detect diseases before their clinical signs appear and develop targeted drug therapies for illnesses such as stroke. 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 $4.1 billion, up 40% over third quarter last year. --Selected to provide 108 CF34(TM) regional jet engines to Air Nostrum Air Nostrum, also known as Iberia Regional, is a regional airline based in Valencia, Spain, operating as an Iberia regional partner and an affiliate member of the oneworld airline alliance. , Finnair and Chautauqua Airlines Chautauqua Airlines is an airline based in Indianapolis, Indiana, USA. It operates scheduled passenger services on more than 670 flights daily to cities in 30 states, Canada and the Bahamas, through feeder services under the names Delta Connection for Delta Air Lines, , and eight extended-range GE90-115B(TM) engines to Emirates Airlines “Emirates” redirects here. For other uses, see Emirates (disambiguation). Emirates Airline (shortened form: Emirates) (Arabic: طيران الإماراتTayarān al-Imārāt . --Through CFMI, a 50/50 joint company of GE and Snecma Moteurs of France, selected to provide engines to airlines including CEBU Pacific Cebu Pacific Air is a low-cost airline based in Pasay City, Manila, the Philippines. It is the Philippines' second national flag carrier, and currently the country's leading domestic airline. It operates scheduled domestic and international services. , Royal Air Maroc Royal Air Maroc (commonly called RAM) is the national airline of Morocco, based in Casablanca, the airline is the third-largest in Africa (behind South African Airways and EgyptAir). and AZAL (Azerbaijan Hava Yollari). --Received new orders in the quarter for 600 GE Evolution Series locomotives, the world's cleanest diesel-electric locomotives Noun 1. diesel-electric locomotive - a locomotive driven by the electric current generated by a diesel engine diesel-electric diesel locomotive - a locomotive driven by a diesel engine , and 37 other locomotives for international customers. --Certified the CF6-80C2 engine for the U.S. Air Force's C-5 heavy aircraft 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, program, worth $2.6 billion of potential total revenues for GE Transportation. --Selected to provide Canada's Maritime INTEREST, MARITIME. By maritime interest is understood the profit of money lent on bottomry or respondentia, which is allowed to be greater than simple interest because the capital of the lender is put in jeopardy. Helicopter Program with the CT7 engine. Energy --Announced on Oct. 4 the largest single award for new wind generation capacity in the history of the global wind energy industry, with a request from Hydro-Quebec to supply up to 660 wind turbines, totaling 990 megawatts of wind-generated electricity, for eight Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. projects to be placed on line from 2006 to 2012. --Announced on Oct. 4 the intent to establish an alliance with Bechtel Corp. to develop a standard commercial offering for "cleaner coal" projects in 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. . --Signed new contractual service agreements totaling $1.4 billion, increasing the number of gas turbines covered by 7% over the same period last year and the number of sites by 8%. --Installed the 2,500th 1.5-megawatt GE wind 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. during the quarter and shipped 49 1.5-megawatt wind turbines. --Completed the acquisition of 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., an environmental services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, leader in particulate matter particulate matter n. Abbr. PM Material suspended in the air in the form of minute solid particles or liquid droplets, especially when considered as an atmospheric pollutant. Noun 1. control systems, and the acquisition of three business units from S.D. Myers, Inc., a leader in transformer transformer, electrical device used to transfer an alternating current or voltage from one electric circuit to another by means of electromagnetic induction. and substation maintenance services. --Received global equipment orders from Mexico, Turkey and China; in China, received orders for eight gas turbines, and turbine-generators for the Pubugou Hydropower hy·dro·pow·er n. Hydroelectric power. plant. --Shipped 29 heavy-duty gas turbines from Greenville, S.C., and Belfort, France, compared with 44 in third quarter 2003. Commercial Finance --Increased the volume of financing for mid-market customers (businesses with $50 million-$1 billion in annual revenues) by 22% over third quarter 2003 to $13.3 billion. --Arranged $1.4 billion of financing for healthcare organizations in the quarter, 84% more than in third quarter 2003, including a $165 million credit facility to Beth Israel Medical Center Beth Israel Medical Center is a hospital in New York City. It has four major locations providing health services. It acts as University Hospital and Manhattan Campus for the Albert Einstein College of Medicine of Yeshiva University. and a $25 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility to Mount Sinai Hospital Mount Sinai Hospital can refer to:
New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . --Through a joint venture with Southern Union, submitted the winning bid for CrossCountry Energy, the holding company formed from Enron's remaining U.S. gas pipelines. --Completed the $1.2 billion acquisition of Benchmark, PLC, a U.K.-listed real estate property company, adding 41 assets in London's West End to Commercial Finance's U.K. real estate portfolio. --Ended the quarter with one aircraft on the ground out of a fleet of more than 1,300 owned aircraft. --Introduced a new aircraft component management service that helps airlines finance and manage their 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. inventories, reduce capital investment, lower costs and improve operational efficiency. Consumer Finance --Entered into a strategic joint venture with Hyundai Capital Hyundai Capital Company is a South Korean financial company, established in 1999 with headquarters in Seoul, South Korea. It was the financial services unit of Hyundai Kia Automotive Group. Its divisions are responsible for over 50% of Hyundai Motor Company revenue. Services, Korea's leading consumer finance company, purchasing a 38% stake and acquiring immediate scale in one of the world's largest economies. --Developed a new program with Dillard's and agreed to purchase its private label credit card business, comprising the sixth-largest in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. private label credit card program in the U.S. and adding 5.5 million active card members to Consumer Finance's customer base. --Teamed with SAM'S CLUB Sam's Club is a membership-only warehouse club owned and operated by Wal-Mart Stores, Inc. History The first Sam's Club opened in April 1983 in Midwest City, Oklahoma in the United States.[1] Sam's Club is named after Sam Walton. to launch the new Premier Line of Credit(SM), which offers small business owners a credit line of up to $100,000 and interest rates as low as prime to help them start and grow their businesses with the same level of financial flexibility typically afforded to mid- mid- pref. Middle: midbrain. to large-sized companies. --Agreed to acquire DeltaBank in Russia, entering one of the world's fastest-growing consumer markets through GE's largest single investment in Russia to date. --Agreed to purchase the credit card receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed of Target Corporation's Mervyn's retail subsidiary (with 257 stores in 13 states, primarily in the West and South), reinforcing GE's commitment to the retail card segment and building on Consumer Finance's strategy to grow in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. market. NBC Universal --Attracted 203 million total U.S. viewers -- 86% of all U.S. television households -- with unprecedented, 24-hour-a-day coverage of the 2004 Summer Games This article is about the Epyx video game series. For the international multi-sport event, see Summer Olympic Games. Summer Games is a sports video game developed by Epyx and released by U.S. Gold based on sports featured in the Summer Olympic Games. in Athens on the networks of NBC Universal, making the Games the third-most watched event in the history of television. --Led primetime broadcast TV viewing for the quarter in the key demographic of adults 18-49. --Drove double-digit ratings growth on every NBCU Cable entertainment 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. , USA Networks and SciFi -- with the group's ratings growing faster in the quarter than those of any other cable group. --Increased Telemundo's Monday-Friday prime-time ratings among adults 18-49 by 70% compared to the year-ago quarter. --Completed the 2003-04 season of Today with the largest total viewers in the program's history, and 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 respective competitors in ratings by 29% and 67% respectively; 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. also extended Leno's contract through 2009 and named O'Brien his successor. --Completed the quarter with The Bourne Bourne, town (1990 pop. 16,064), Barnstable co., SE Mass., crossed by Cape Cod Canal; settled 1627, inc. 1884. Bourne Bridge (1935), across the canal, made the town an entry point to Cape Cod and a resort and commercial center. Supremacy SUPREMACY. Sovereign dominion, authority, and preeminence; the highest state. In the United States, the supremacy resides in the people, and is exercises by their constitutional representatives, the president and congress. Vide Sovereignty. having garnered a worldwide theatrical gross of more than $230 million since its July 23 release. --Shipped more than 1.5 million units in the first week of release of the 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. of Eternal Sunshine of the Spotless spot·less adj. 1. Perfectly clean. See Synonyms at clean. 2. Free from blemish; impeccable. spot  less·ly adv. Mind.--Increased MSNBC's primetime viewership view·er·ship n. The people who watch a television program or motion picture: a largely male viewership. in the quarter by 55% over third quarter 2003, which represents faster growth than any other cable channel in the quarter and almost three times the growth of CNN CNN or Cable News Network Subsidiary company of Turner Broadcasting Systems. It was created by Ted Turner in 1980 to present 24-hour live news broadcasts, using satellites to transmit reports from news bureaus around the world. . Infrastructure --Provided EntryScan(TM) and Itemiser(TM) explosives detection devices to protect attendees of the 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. , the Democratic and Republican national conventions and the re-opened Statue of Liberty Statue of Liberty great symbolic structure in New York harbor. [Am. Hist.: Jameson, 284] See : America Statue of Liberty perhaps the most famous monument to independence. [Am. Hist.: Jameson, 284] See : Freedom . --Concluded successful trials for the U.S. Transportation Security Administration (TSA TSA See tax-sheltered annuity (TSA). ) of GE's walk-through EntryScan at four U.S. airports, with the TSA choosing to make the installations permanent. --Entered the global cargo security industry with CommerceGuard(TM), a palm-sized security device that helps detect unauthorized access to a container and monitors the container in transit for signs of intrusion; also was selected for a new TSA pilot program to screen air cargo air cargo: see aviation. for explosives. --Signed new water and process technologies contracts, generating a customized services backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of more than $50 million while driving new growth in pure water outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , emergency mobile water and equipment, with customers in the transportation, chemical, power, hydro-carbon processing, energy and microprocessing industries. 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 new LNP (Local Number Portability) The capability of keeping the same local telephone number when switching carriers. See NP and WLNP. (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 additives used to manufacture self-lubricating, wear-resistant gears for sectors as diverse as consumer electronics, automotive, power tools and appliances. --Introduced a tough, custom-colorable thermoplastic A polymer material that turns to liquid when heated and becomes solid when cooled. There are more than 40 types of thermoplastics, including acrylic, polypropylene, polycarbonate and polyethylene. compound for the electronics industry with permanent antistatic Eliminating or reducing static electricity. See static electricity, antistatic bag, antistatic device, antistatic liquid and antistatic wristband. and electrostatic-dissipative properties. Consumer & Industrial --Named The Home Depot's 2004 "Partner of the Year" in the Kitchen and Bath Department for consistently outstanding performance. --Began rolling out a lighting products program for all of The Home Depot's 1,500-plus U.S.-based stores. --Increased margins on 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(TM) appliances by 39% and 24% respectively over third quarter 2003. --Increased margins through several new product launches including the new Profile 42" Built-In Refrigerator, Monogram Integrated Dishwasher, Transformore(TM) Transformer 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 A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. upgrades. --Completed the disposition of the Commercial AC motor business to Regal-Beloit Corporation. 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" - 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 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 or 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
-----------------------------------
Three months ended September 30 2004 2003 V%
------------------------------- -----------------------------------
Revenues
Sales of goods and services $21,607 $16,925
Earnings of GECS before
accounting change - -
GECS revenues from services 16,476 16,263
Other income 189 206
-------------------------
Total revenues 38,272 33,394 15%
-------------------------
Costs and expenses
Cost of sales, operating and
administrative expenses 25,328 20,245
Interest and other financial
charges 2,943 2,723
Insurance losses and
policyholder and annuity
benefits 3,858 4,168
Provision for losses on
financing receivables 785 1,061
Minority interest in net
earnings of consolidated
affiliates 269 77
-------------------------
Total costs and
expenses 33,183 28,274 17%
-------------------------
Earnings before income taxes
and accounting change 5,089 5,120
Provision for income taxes (1,038) (1,099)
-------------------------
Earnings before accounting
change $4,051 $4,021 1%
Cumulative effect of accounting
change - (372)
-------------------------
Net earnings $4,051 $3,649 11%
=========================
Per-share amounts before
accounting change
Diluted earnings per share $0.38 $0.40 (5)%
Total average equivalent
shares 10,610 10,085 5%
Basic earnings per share $0.38 $0.40 (5)%
Total average equivalent
shares 10,566 10,031 5%
Per-share amounts after
accounting change
Diluted earnings per share $0.38 $0.36 6%
Total average equivalent
shares 10,610 10,085 5%
Basic earnings per share $0.38 $0.36 6%
Total average equivalent
shares 10,566 10,031 5%
Dividends declared per share $0.20 $0.19
GE Financial Services
(GECS)
--------------------------------- -------------------
Three months ended
September 30 2004 2003 V% 2004 2003 V%
-------------------- -------- -------- --- ------- ------- ---
Revenues
Sales of
goods and
services $20,967 $16,463 $706 $527
Earnings of
GECS before
accounting
change 2,233 2,207 - -
GECS
revenues
from
services - - 16,843 16,480
Other income 193 235 - -
-------- -------- ------- -------
Total
revenues 23,393 18,905 24% 17,549 17,007 3%
-------- -------- ------- -------
Costs and
expenses
Cost of sales,
operating and
administrative
expenses 18,394 14,136 7,204 6,303
Interest and
other
financial
charges 355 282 2,703 2,558
Insurance
losses and
policyholder
and annuity
benefits - - 3,910 4,168
Provision for
losses on
financing
receivables - - 785 1,061
Minority
interest in
net earnings
of
consolidated
affiliates 143 44 126 33
-------- -------- ------- -------
Total
costs
and
expenses 18,892 14,462 31% 14,728 14,123 4%
-------- -------- ------- -------
Earnings before
income taxes and
accounting change 4,501 4,443 2,821 2,884
Provision for
income taxes (450) (422) (588) (677)
-------- -------- ------- -------
Earnings before
accounting
change $4,051 $4,021 1% $2,233 $2,207 1%
Cumulative effect of
accounting change - (372) - (339)
-------- -------- ------- -------
Net earnings $4,051 $3,649 11% $2,233 $1,868 20%
======== ======== ======= =======
Consolidated
----------------------------------
Nine months ended September 30 2004 2003 V%
----------------------------------------------------------------------
Revenues
Sales of
goods and
services $59,372 $51,210
Earnings of GECS before
accounting change - -
GECS revenues from services 48,635 45,604
Other income 650 409
---------------------
Total
revenues 108,657 97,223 12%
---------------------
Costs and
expenses
Cost of sales, operating and
administrative expenses 71,630 59,415
Interest and other financial
charges 8,503 8,002
Insurance losses and
policyholder and annuity
benefits 11,190 12,409
Provision for losses on
financing receivables 2,744 2,799
Minority interest in net
earnings of consolidated
affiliates 539 219
---------------------
Total
costs
and
expenses 94,606 82,844 14%
---------------------
Earnings before income taxes and
accounting changes 14,051 14,379
Provision for
income taxes (2,836) (3,350)
---------------------
Earnings before accounting changes $11,215 $11,029 2%
Cumulative effect of accounting
changes - (587)
---------------------
Net earnings $11,215 $10,442 7%
=====================
Per-share amounts before accounting changes
Diluted
earnings
per share $1.08 $1.10 (2)%
Total average equivalent shares 10,398 10,065 3%
Basic
earnings
per share $1.08 $1.10 (2)%
Total average equivalent shares 10,353 10,007 3%
Per-share amounts after accounting changes
Diluted
earnings
per share $1.08 $1.04 4%
Total average equivalent shares 10,398 10,065 3%
Basic
earnings
per share $1.08 $1.04 4%
Total average equivalent shares 10,353 10,007 3%
Dividends
declared per
share $0.60 $0.57
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
Financial
Services
GE (GECS)
------------------------------ -------------------
Nine months ended
September 30 2004 2003 V% 2004 2003 V%
------------------ -------- -------- --- ------- ------- ---
Revenues
Sales of goods
and services $57,642 $49,861 $2,010 $1,582
Earnings of GECS
before accounting
change 5,774 5,479 - -
GECS revenues
from services - - 49,615 46,179
Other income 660 458 - -
-------- -------- ------- -------
Total
revenues 64,076 55,798 15% 51,625 47,761 8%
-------- -------- ------- -------
Costs and
expenses
Cost of sales,
operating and
administrative
expenses 50,555 41,885 21,861 18,130
Interest and
other
financial
charges 643 705 8,192 7,554
Insurance
losses and
policyholder
and annuity
benefits - - 11,342 12,409
Provision for
losses on
financing
receivables - - 2,744 2,799
Minority
interest in
net earnings
of
consolidated
affiliates 291 123 248 96
-------- -------- ------- -------
Total
costs
and
expenses 51,489 42,713 21% 44,387 40,988 8%
-------- -------- ------- -------
Earnings before
income taxes and
accounting changes 12,587 13,085 7,238 6,773
Provision for
income taxes (1,372) (2,056) (1,464) (1,294)
-------- -------- ------- -------
Earnings before
accounting changes $11,215 $11,029 2% $5,774 $5,479 5%
Cumulative effect of
accounting changes - (587) - (339)
----------------- ---------------
Net earnings $11,215 $10,442 7% $5,774 $5,140 12%
================= ===============
Dollar amounts and share 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 (unaudited)
General Electric Company and Consolidated Affiliates
Three Months Ended Nine Months Ended
September 30 September 30
---------------------- -----------------------
(Dollars in millions) 2004 2003 V% 2004 2003 V%
------- ------- ---- -------- ------- ----
Revenues
Advanced Materials $ 2,035 $ 1,739 17 $ 5,968 $ 5,158 16
Commercial Finance 6,028 5,205 16 17,151 15,161 13
Consumer Finance 4,011 3,499 15 11,430 9,304 23
Consumer &
Industrial 3,423 3,212 7 10,010 9,386 7
Energy 4,113 4,343 (5) 12,096 13,374 (10)
Equipment & Other
Services 1,966 1,479 33 5,993 3,312 81
Healthcare 3,330 2,336 43 9,197 6,878 34
Infrastructure 857 797 8 2,495 2,233 12
Insurance 5,544 6,824 (19) 17,051 19,984 (15)
NBC Universal 4,096 1,517 F 8,545 4,943 73
Transportation 3,777 3,156 20 11,085 9,524 16
Corporate items and
eliminations (908) (713) (27) (2,364) (2,034) (16)
------- ------- -------- -------
Consolidated revenues $38,272 $33,394 15 $108,657 $97,223 12
======= ======= ======== =======
Segment profit (a)
Advanced Materials $ 131 $ 159 (18) $ 463 $ 415 12
Commercial Finance 1,246 1,060 18 3,176 2,762 15
Consumer Finance 681 595 14 1,883 1,655 14
Consumer & Industrial 163 124 31 516 425 21
Energy 639 986 (35) 1,923 2,941 (35)
Equipment & Other
Services 186 (52) F 132 (562) F
Healthcare 503 383 31 1,426 1,129 26
Infrastructure 146 132 11 393 331 19
Insurance 120 604 (80) 583 1,624 (64)
NBC Universal 536 431 24 1,698 1,462 16
Transportation 773 604 28 2,220 1,846 20
------- ------- -------- -------
Total segment
profit 5,124 5,026 2 14,413 14,028 3
GE corporate items and
eliminations (268) (301) 11 (1,183) (238) U
GE interest and other
financial charges (355) (282) (26) (643) (705) 9
GE provision for
income taxes (450) (422) (7) (1,372) (2,056) 33
------- ------- -------- -------
Earnings before
accounting change 4,051 4,021 1 11,215 11,029 2
Cumulative effect of
accounting change - (372) - (587)
------- ------- -------- -------
Consolidated net
earnings $ 4,051 $ 3,649 11 $ 11,215 $10,442 7
======= ======= ======== =======
(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 billions)
Consolidated GE Financial Services
(GECS)
------------------- ------------------ ------------------
Assets 9/30/04 12/31/03 9/30/04 12/31/03 9/30/04 12/31/03
--------- --------- -------- --------- -------- ---------
Cash &
marketable
securities $135.4 $135.0 $1.8 $2.0 $133.7 $133.2
Receivables 12.5 10.7 12.7 11.0 - -
Inventories 9.7 8.8 9.5 8.6 0.2 0.2
GECS
financing
receivables
- net 253.3 247.9 - - 253.3 247.9
Plant &
equipment -
net 61.4 53.4 16.1 14.6 45.3 38.8
Investment in
GECS - - 49.0 45.3 - -
Goodwill &
intangible
assets 81.4 55.0 54.0 30.2 27.4 24.8
Other assets 150.9 136.7 38.1 30.4 117.5 109.6
--------- --------- -------- -------- --------- ---------
Total assets $704.6 $647.5 $181.2 $142.1 $577.4 $554.5
========= ========= ======== ======== ========= =========
Liabilities
and equity
Borrowings $339.5 $329.7 $11.3 $10.9 $329.5 $320.3
Insurance
reserves 138.2 136.3 - - 138.5 136.3
Other
liabilities
& minority
interest 125.1 102.3 68.1 52.0 60.4 52.6
Shareowners'
equity 101.8 79.2 101.8 79.2 49.0 45.3
--------- --------- -------- -------- --------- ---------
Total
liabilities
and equity $704.6 $647.5 $181.2 $142.1 $577.4 $554.5
========= ========= ======== ======== ========= =========
September 30, 2004 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 consolidated financial
statements in the 2003 Annual Report to Shareowners for further
information about consolidation matters.
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:
-- Earnings and earnings per share growth excluding the impact of
GE's insurance portfolio repositioning and earnings from GE's
principal pension plans;
-- Organic Industrial sales growth; and
-- Increase in Industrial CFOA in the first nine months of 2004.
Reconciliation of these non-GAAP financial measures to their most
directly comparable GAAP financial measures - reported earnings before
accounting change, earnings per share, Industrial sales growth and
cash from operating activities - follow.
(Dollars in millions; per-share amounts in dollars)
THREE MONTHS ENDED
SEPTEMBER 30
----------------------
2004 2003 V%
-------- -------- ---
Earnings before accounting change $4,051 $4,021
-------- --------
Less: Impact of insurance portfolio
repositioning
Total Insurance segment 120 604
Less: Insurance Solutions (Formerly
ERC) (39) 120
-------- --------
Impact of insurance portfolio
repositioning 159 484
Less: Earnings from GE's principal pension
plans 25 102
-------- --------
Earnings excluding impact of insurance
portfolio repositioning and earnings from GE's
principal pension plans $3,867 $3,435 13%
======== ========
EPS excluding impact of insurance portfolio
repositioning and earnings from GE's principal
pension plans $0.36 $0.34 6%
THREE MONTHS ENDED
SEPTEMBER 30
----------------------
2004 2003 V%
-------- -------- ---
Industrial sales as reported $20,967 $16,463
Less: Effects of acquisitions/dispositions and
currency exchange on Industrial sales 2,727 180
-----------------
Industrial sales excluding the effects of
acquisitions/dispositions and currency
exchange (Organic Industrial Sales) $18,240 $16,283 12%
=================
NINE MONTHS ENDED
SEPTEMBER 30
----------------------
2004 2003 V%
-------- -------- ---
Cash from GE's operating activities as reported $9,708 $7,378
Less: GECS dividends 2,064 1,252
-----------------
Cash from GE's operating activities excluding
dividends from GECS (Industrial CFOA) $7,644 $6,126 25%
=================
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 third quarter 2004 earnings and earnings per share without the
impact of insurance portfolio repositioning and the decline in
earnings from our principal pension plans. Similarly, we believe
presentation of third quarter 2004 growth in Industrial sales without
the effects of acquisitions, dispositions, and currency exchange is
useful to investors. We also believe that investors would find it
useful to compare our cash flow from operating activities for the
first nine months of 2004 against the comparable period of 2003
without the impact of GECS dividends, principally proceeds from the
Genworth initial public offering in 2004 and other business
dispositions in 2003.
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