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GE SECOND QUARTER NET EARNINGS PER SHARE UP 10 PERCENT TO $1.56

 FAIRFIELD, Conn., July 13 /PRNewswire/ -- "Net earnings for the second quarter of 1993 reached record levels," General Electric Company (NYSE: GE) Chairman John F. Welch, Jr. reported today. "Our diverse businesses once again proved their fundamental strengths in a difficult global economic environment."
 GE's net earnings for the second quarter of 1993 were $1.334 billion, up 10 percent from $1.216 billion in the second quarter of 1992. Earnings per share were $1.56, up 10 percent from $1.42 in last year's second quarter. Consolidated revenues were $14.8 billion in 1993's second quarter, an increase of 4 percent from the prior year's $14.2 billion.
 "During the second quarter, GE used the $678 million after tax gain ($.79 per share) on the April 2 transfer of the discontinued Aerospace businesses to fund restructuring actions that will enhance the company's operations," Mr. Welch said. "This continues our practice of using gains from asset sales and transfers to improve the global competitiveness of our ongoing businesses." The one-time restructuring charges ($.79 per share) are classified as a reduction of "continuing operations" while the Aerospace gain is classified as an increase in "discontinued operations". As a result, earnings from continuing operations will be $656 million ($.77 per share), down 42 percent, although net earnings increased 10 percent as discussed above.
 "GE's ongoing operations demonstrated their strength with an 18 percent increase in second quarter earnings," Mr. Welch continued. "This growth was led by Plastics, NBC, Power Systems, Appliances and GE Capital Services. Operating margin for ongoing operations was a record 14.2 percent, a substantial improvement over a comparable 12.8 percent for last year's quarter. Year-to-date cash from continuing operating activities reached $1.1 billion, exceeding last year's record half."
 Mr. Welch concluded, "GE employees' emphasis on speed continues to yield impressive results in a difficult global economy. We are confident that this will continue and give GE record levels of performance in 1993."
 First-half 1993 revenues from continuing operations were $27.6 billion, up 4 percent from last year's comparable $26.6 billion. Earnings before the cumulative effect of the accounting change discussed below were $2.494 billion for the first six months of 1993, up 10 percent from last year's $2.274 billion. Comparable per share earnings were $2.92 for this year's first six months, a 10 percent increase from $2.65 for the first half of 1992. After the accounting change, first- half 1993 earnings amounted to $1.632 billion or $1.91 per share.
 As previously reported, the Company during the quarter adopted Statement of Financial Accounting Standards No. 112, which revised the method of accounting for postemployment benefits. The cumulative effect of the change, $1.306 billion pretax ($862 million or $1.01 per share net of tax), was recorded as a reduction of first-quarter earnings. This accounting standard, which must be adopted by all companies in 1994, recognizes the cost of postemployment benefits, principally severance benefits, over employees' working lives. There is no cash flow impact from this charge to earnings.
 GENERAL ELECTRIC COMPANY
 Segment Analysis
 Comments that follow compare revenues and ongoing operating profit by industry segment for the second quarters of 1993 and 1992. Operating profit, which includes the effects of second-quarter 1993 restructuring charges, is discussed as a separate item below.
 Materials revenues were somewhat higher than last year and ongoing operating profit was much higher as strong productivity improvements, cost reductions and higher North American volume more than offset continued weakness in European markets.
 Broadcasting reported considerably higher ongoing operating profit because of slightly higher revenues and continued lower overhead and programming costs.
 GE Capital Services net earnings were 19 percent ahead of last year's quarter, led by improvement in Specialized Financing, Specialty Insurance, Mid-Market Financing and Consumer Services. For the first half, sixteen of Capital Services' 23 businesses, including Kidder Peabody, had record earnings.
 Power Systems reported much higher ongoing operating profit on somewhat higher revenues reflecting strong Power Generation performance
 Appliances ongoing operating profit was much higher on flat revenues reflecting an improving North American market and productivity gains.
 Aircraft Engines ongoing operating profit was flat on a considerable decrease in revenues. Lower shipments of engines and spare parts in both military and commercial markets were somewhat mitigated by revenues associated with the 1993 consolidation of the recently-acquired Engine Maintenance & Management Services business in Wales.
 Industrial revenues were somewhat higher than last year's quarter on a sharp increase in locomotive shipments, partially offset by lower Lighting revenues. Ongoing operating profit was up slightly as strong productivity across the segment was partially offset by weakness in prices.
 Technical Products And Services revenues were considerably lower as a result of transfers and dispositions of former Communications and Services businesses other than GE Information Services. Ongoing operating profit was down considerably as a result of the business transfers and dispositions referred to above and pricing pressures at Medical Systems.
 All Other ongoing operating profit was somewhat higher on flat revenues. When restructuring charges are included, second quarter 1993 operating profit was down sharply. In the segments affected by restructuring, operating profit comparisons with second quarter 1992 are not meaningful. GE Capital Services and All Other were the two segments not affected by restructuring charges.
 -0- 7/13/93
 /CONTACT: Bruce Bunch of General Electric Company, 203-373-2039, or at home: 203-263-5595/
 (GE)


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

TS-PS -- NY013 -- 0723 07/13/93 08:10 EDT
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Publication:PR Newswire
Date:Jul 13, 1993
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