EX-99 2 exhibit99.htm EXHIBIT 99 exhibit99.htm
 

Exhibit 99
PRESS RELEASE
 
 
GE Reports 2Q’12 Operating EPS $0.38 +12%
Industrial Segment Revenues of $25B, +9%; Organic Growth +10%
Record backlog of $204B, Orders pricing up 1.2%
GE Capital paid $3B dividend, CFOA year-to-date of $6.8B, +55%




2Q 2012 Highlights

·  
 Ninth consecutive quarter of strong operating earnings growth
ü 
2Q Operating EPS of $0.38, up 12%
ü 
2Q Continuing EPS of $0.34, up 3%
·  
YTD orders up 8%, 2Q Infrastructure orders, down 1%, up 1% excluding FX
·  
Total Revenues of $36.5 billion, up 2%
ü 
FX negatively impacted revenues by $0.9 billion
ü 
GE Capital revenues down 8% driven by planned shrinkage
·  
Executing on our growth strategy
 ü
Industrial growth market orders up 14%, revenues up 17%
 ü
Energy segment profit up 15%, Oil & Gas up 11%, Transportation up 58%
·  
GE Capital earned $2.1 billion, up 31%, returned $3 billion to parent; Tier One Common at 10.1%
· 
No change in company outlook; on track to deliver on double-digit earnings growth in 2012

 
FAIRFIELD, Conn. – July 20, 2012 – GE [NYSE: GE] announced today second-quarter 2012 Operating Earnings of $4.0 billion, or $0.38 per share, up 7% and 12% respectively from the second-quarter of 2011.   GAAP earnings from continuing operations (attributable to GE) were $3.7 billion, up 2%, or $0.34 per share, up 3%.  Revenues were $36.5 billion for the quarter, up 2%.  Industrial segment revenue grew by 9%, with organic growth of 10%.  The strength of GE’s Industrial portfolio was underscored by strong segment profit increases in Energy, Oil & Gas and Transportation.  The company is performing well and is on track to deliver double-digit earnings growth in 2012 for both Industrial and GE Capital segments.

“Today’s results demonstrate that we are executing on our growth strategy in the midst of a still volatile global economy,” said GE Chairman and CEO Jeff Immelt.  “GE Capital’s strong operating performance and capital position allowed it to return a $3 billion dividend to the parent, and our Industrial segments delivered another quarter of double-digit organic revenue growth.  Our strategy to invest in growth markets is paying off, as we achieved orders expansion in growth markets of 14% and revenue growth of 17%.  We ended the quarter with a record backlog.”

Infrastructure orders were $23.1 billion, down 1% primarily driven by a 37% decrease in orders for wind turbines.  Orders were up 8% on a year-to-date basis.  Total orders performance included: Aviation up 5% and Transportation up 2%. Orders for the quarter included: GE Transportation orders for 176 locomotives from railroad customers in North America, up 28% from second-quarter 2011. In Australia, GE Energy is
 
 
 
(1)
 
 
 
supplying 5 Frame 6B gas turbines, 3 SC4 single-flow steam turbines and 5 heat recovery generators to provide 500 megawatts of installed power capacity for a combined cycle power plant for the Ichthys liquefied natural gas (LNG) project.  It will enable the facility to produce more than 8 million tons of LNG each year.  In Russia, GE Energy signed a deal with REP Holding for the assembly of 28 GE MS 5002E gas turbines.

Total revenues for the quarter were $36.5 billion, up 2%.  Revenues were negatively impacted by $0.9 billion due to FX and further shrinkage of our GE Capital business.  GE’s second-quarter Industrial segment revenues were $25.0 billion, up 9%.  Industrial segment organic revenues were up 10% for the quarter.  Industrial growth market revenues were up 17%, driven by double-digit growth in Australia, Canada, China, Latin America, the Middle East/North Africa, Southeast Asia and Russia.

Industrial segment profit was up 7% to $3.7 billion and segment operating profits were strong in Energy Infrastructure and Transportation, up 13% and 58%, respectively.  In addition, pricing on orders was up 1.2% in total with higher prices in 4 out of 5 businesses.  Energy Infrastructure pricing was up 1.8%.  Cash generated from operating activities was up 55% at $6.8 billion.  GE ended the quarter with $74 billion of consolidated cash and cash equivalents.

Immelt concluded, “Our Industrial outlook remains positive.  Margins have stabilized and Energy, Oil & Gas, and Transportation performed very well with double-digit profit increases.  We are confident in our double-digit EPS growth expectations for 2012 and are raising our operating cash expectations to $17-19 billion based upon the restart of the GE Capital dividend.”


Second-quarter Highlights:

Second-quarter operating earnings were $4.0 billion, up 7% from second quarter 2011 and operating EPS was $0.38, up 12% from $0.34 in the second quarter of last year.  GAAP earnings from continuing operations (attributable to GE) were $3.7 billion, up 2%, or $0.34 per share, up 3% from the second quarter of 2011.

Including the effects of discontinued operations, second-quarter net earnings attributable to GE were $3.1 billion ($0.29 per share attributable to common shareowners) in 2012 compared with $3.7 billion ($0.35 per share attributable to common shareowners) in the second quarter of 2011.  Discontinued Operations included $0.05 per share of charges primarily related to WMC and GE Money Japan reserve adjustments.  Positive one-time tax items of $0.02 per share were offset by $0.02 per share of restructuring and other charges.

Second-quarter revenues increased 2% to $36.5 billion.  Industrial sales of $25.1 billion increased 9% versus the second quarter of 2011. GE Capital (GECC) revenues of $11.5 billion decreased 8% from last year, driven by lower assets in-line with plan.

Cash generated from GE operating activities in the first six months of 2012 totaled $6.8 billion, up 55% from $4.4 billion last year.  Cash generated from GE Industrial operating activities in the first six months of 2012 totaled $3.8 billion, down 13% from last year.

The accompanying tables include information integral to assessing the Company’s financial position, operating performance and cash flow.
 
 
(2)
 
 

GE will discuss preliminary second-quarter results on a Webcast at 8:30 a.m. ET today, available at www.ge.com/investor.  Related charts will be posted there prior to the call.

*   *   *
About GE
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges.  Finding solutions in energy, health and home, transportation and finance.  Building, powering, moving and curing the world.  Not just imagining.  Doing.  GE works.  For more information, visit the company's website at www.ge.com.


 
Caution Concerning Forward-Looking Statements:
 
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 financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in the European sovereign debt situation; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (GE Money Japan); pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level; GECC’s ability to pay dividends to GE at the planned level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; strategic actions, including acquisitions, joint ventures and dispositions and our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive 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.

Investor Contact:
Trevor Schauenberg, 203.373.2424 (office)
trevor.a.schauenberg@ge.com

Media Contact:
Deirdre Latour, 203.373.3061 (office)
203-383-0160 (cell)
deirdre.latour@ge.com
 
 
 
(3)
 
 
 
 
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
                                                         
                                         
Financial
   
Consolidated
   
GE(a)
 
Services (GECC)
Three Months Ended June 30
   
2012 
   
2011 
   
V%
     
2012 
   
2011 
   
V%
   
2012 
   
2011 
   
V%
Revenues and other income
                                                       
Sales of goods and services
 
$
25,003 
 
$
22,908 
   
9%
   
$
25,138 
 
$
22,961 
   
9%
 
$
26 
 
$
42 
   
(38)%
Other income
   
393 
   
624 
           
409 
   
676 
         
– 
   
– 
     
GECC earnings from continuing operations
   
– 
   
– 
           
2,122 
   
1,615 
         
– 
   
– 
     
GECC revenues from services
   
11,105 
   
12,091 
           
– 
   
– 
         
11,432 
   
12,398 
     
   Total revenues and other income
   
36,501 
   
35,623 
   
2%
     
27,669 
   
25,252 
   
10%
   
11,458 
   
12,440 
   
(8)%
                                                         
Costs and expenses
                                                       
Cost of sales, operating and administrative
                                                       
   expenses
   
27,700 
   
25,779 
           
23,249 
   
20,761 
         
4,787 
   
5,279 
     
Interest and other financial charges
   
3,211 
   
3,770 
           
351 
   
321 
         
2,988 
   
3,598 
     
Investment contracts, insurance losses and
                                                       
   insurance annuity benefits
   
662 
   
746 
           
– 
   
– 
         
702 
   
790 
     
Provision for losses on financing receivables
   
743 
   
792 
           
– 
   
– 
         
743 
   
792 
     
   Total costs and expenses
   
32,316 
   
31,087 
   
4%
     
23,600 
   
21,082 
   
12%
   
9,220 
   
10,459 
   
(12)%
                                                         
Earnings from continuing operations
                                                       
   before income taxes
   
4,185 
   
4,536 
   
(8)%
     
4,069 
   
4,170 
   
(2)%
   
2,238 
   
1,981 
   
13%
Benefit (provision) for income taxes
   
(494)
   
(892)
           
(392)
   
(546)
         
(102)
   
(346)
     
Earnings from continuing operations
   
3,691 
   
3,644 
   
1%
     
3,677 
   
3,624 
   
1%
   
2,136 
   
1,635 
   
31%
Earnings (loss) from discontinued
                                                       
   operations, net of taxes
   
(553)
   
194 
           
(553)
   
194 
         
(553)
   
195 
     
Net earnings
   
3,138 
   
3,838 
   
(18)%
     
3,124 
   
3,818 
   
(18)%
   
1,583 
   
1,830 
   
(13)%
Less net earnings attributable to
                                                       
   noncontrolling interests
   
33 
   
74 
           
19 
   
54 
         
14 
   
20 
     
Net earnings attributable
                                                       
    to the Company
   
3,105 
   
3,764 
   
(18)%
     
3,105 
   
3,764 
   
(18)%
   
1,569 
   
1,810 
   
(13)%
Preferred stock dividends declared
   
– 
   
(75)
           
– 
   
(75)
         
– 
   
– 
     
Net earnings attributable to
                                                       
   GE common shareowners
 
$
3,105 
 
$
3,689 
   
(16)%
   
$
3,105 
 
$
3,689 
   
(16)%
 
$
1,569 
 
$
1,810 
   
(13)%
                                                         
                                                         
Amounts attributable to the Company:
                                                       
Earnings from continuing operations
 
$
3,658 
 
$
3,570 
   
2%
   
$
3,658 
 
$
3,570 
   
2%
 
$
2,122 
 
$
1,615 
   
31%
Earnings (loss) from discontinued
                                                       
   operations, net of taxes
   
(553)
   
194 
           
(553)
   
194 
         
(553)
   
195 
     
Net earnings attributable
                                                       
   to the Company
 
$
3,105 
 
$
3,764 
   
(18)%
   
$
3,105 
 
$
3,764 
   
(18)%
 
$
1,569 
 
$
1,810 
   
(13)%
                                                         
Per-share amounts - earnings from
                                                       
   continuing operations
                                                       
Diluted earnings per share
 
$
 0.34 
 
$
 0.33 
   
3%
                                     
Basic earnings per share
 
$
 0.35 
 
$
 0.33 
   
6%
                                     
                                                         
Per-share amounts - net earnings
                                                       
Diluted earnings per share
 
$
 0.29 
 
$
 0.35 
   
(17)%
                                     
Basic earnings per share
 
$
 0.29 
 
$
 0.35 
   
(17)%
                                     
                                                         
Total average equivalent shares
                                                       
Diluted shares
   
10,611 
   
10,639 
   
-%
                                     
Basic shares
   
10,574 
   
10,604 
   
-%
                                     
                                                         
Dividends declared per common share
 
$
 0.17 
 
$
 0.15 
   
13%
                                     
                                                         
                                                         
Amounts attributable to the Company:
                                                       
Earnings from continuing operations
 
$
3,658 
 
$
3,570 
   
2%
                                     
Adjustment (net of tax): Non-operating
                                                       
   pension costs/(income)
   
352 
   
181 
                                           
Operating earnings (non-GAAP measure)
 
$
4,010 
 
$
3,751 
   
7%
                                     
                                                         
Operating earnings – diluted earnings
                                                       
   per share
 
$
0.38 
 
$
0.34 
   
12%
                                     
                                                         
(a)  
Refers to the Industrial businesses of the Company including GECC on an equity basis.
 
Dollar amounts and share amounts in millions; per-share amounts in dollars; unaudited. Supplemental data are shown for “GE” and “GECC.” Transactions between GE and GECC have been eliminated from the “Consolidated” columns. See Note 1 to the 2011 consolidated financial statements at www.ge.com/ar2011 for further information about consolidation matters.
 
 
(4)
 
 
 
 
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
                                                         
                                         
Financial
   
Consolidated
   
GE(a)
 
Services (GECC)
Six Months Ended June 30
   
2012 
   
2011 
   
V%
     
2012 
   
2011 
   
V%
   
2012 
   
2011 
   
V%
Revenues and other income
                                                       
Sales of goods and services
 
$
48,530 
 
$
44,899 
   
8%
   
$
48,825 
 
$
45,063 
   
8%
 
$
56 
 
$
84 
   
(33)%
Other income
   
950 
   
4,249 
           
1,009 
   
4,341 
         
– 
   
– 
     
GECC earnings from continuing operations
   
– 
   
– 
           
3,914 
   
3,405 
         
– 
   
– 
     
GECC revenues from services
   
22,203 
   
24,804 
           
– 
   
– 
         
22,844 
   
25,392 
     
   Total revenues and other income
   
71,683 
   
73,952 
   
(3)%
     
53,748 
   
52,809 
   
2%
   
22,900 
   
25,476 
   
(10)%
                                                         
Costs and expenses
                                                       
Cost of sales, operating and administrative
                                                       
   expenses
   
53,998 
   
51,002 
           
45,286 
   
40,989 
         
9,408 
   
10,572 
     
Interest and other financial charges
   
6,569 
   
7,566 
           
666 
   
676 
         
6,184 
   
7,182 
     
Investment contracts, insurance losses and
                                                       
   insurance annuity benefits
   
1,399 
   
1,482 
           
– 
   
– 
         
1,473 
   
1,559 
     
Provision for losses on financing receivables
   
1,606 
   
1,932 
           
– 
   
– 
         
1,606 
   
1,932 
     
   Total costs and expenses
   
63,572 
   
61,982 
   
3%
     
45,952 
   
41,665 
   
10%
   
18,671 
   
21,245 
   
(12)%
                                                         
Earnings from continuing operations
                                                       
   before income taxes
   
8,111 
   
11,970 
   
(32)%
     
7,796 
   
11,144 
   
(30)%
   
4,229 
   
4,231 
   
-%
Benefit (provision) for income taxes
   
(1,131)
   
(4,834)
           
(842)
   
(4,059)
         
(289)
   
(775)
     
Earnings from continuing operations
   
6,980 
   
7,136 
   
(2)%
     
6,954 
   
7,085 
   
(2)%
   
3,940 
   
3,456 
   
14%
Earnings (loss) from discontinued
                                                       
   operations, net of taxes
   
(770)
   
229 
           
(770)
   
229 
         
(770)
   
230 
     
Net earnings
   
6,210 
   
7,365 
   
(16)%
     
6,184 
   
7,314 
   
(15)%
   
3,170 
   
3,686 
   
(14)%
Less net earnings attributable to
                                                       
   noncontrolling interests
   
71 
   
168 
           
45 
   
117 
         
26 
   
51 
     
Net earnings attributable
                                                       
    to the Company
   
6,139 
   
7,197 
   
(15)%
     
6,139 
   
7,197 
   
(15)%
   
3,144 
   
3,635 
   
(14)%
Preferred stock dividends declared
   
– 
   
(150)
           
– 
   
(150)
         
– 
   
– 
     
Net earnings attributable to
                                                       
   GE common shareowners
 
$
6,139 
 
$
7,047 
   
(13)%
   
$
6,139 
 
$
7,047 
   
(13)%
 
$
3,144 
 
$
3,635 
   
(14)%
                                                         
                                                         
Amounts attributable to the Company:
                                                       
Earnings from continuing operations
 
$
6,909 
 
$
6,968 
   
(1)%
   
$
6,909 
 
$
6,968 
   
(1)%
 
$
3,914 
 
$
3,405 
   
15%
Earnings (loss) from discontinued
                                                       
   operations, net of taxes
   
(770)
   
229 
           
(770)
   
229 
         
(770)
   
230 
     
Net earnings attributable
                                                       
   to the Company
 
$
6,139 
 
$
7,197 
   
(15)%
   
$
6,139 
 
$
7,197 
   
(15)%
 
$
3,144 
 
$
3,635 
   
(14)%
                                                         
Per-share amounts - earnings from
                                                       
   continuing operations
                                                       
Diluted earnings per share
 
$
 0.65 
 
$
 0.64 
   
2%
                                     
Basic earnings per share
 
$
 0.65 
 
$
 0.64 
   
2%
                                     
                                                         
Per-share amounts - net earnings
                                                       
Diluted earnings per share
 
$
 0.58 
 
$
 0.66 
   
(12)%
                                     
Basic earnings per share
 
$
 0.58 
 
$
 0.66 
   
(12)%
                                     
                                                         
Total average equivalent shares
                                                       
Diluted shares
   
10,608 
   
10,640 
   
-%
                                     
Basic shares
   
10,574 
   
10,608 
   
-%
                                     
                                                         
Dividends declared per common share
 
$
 0.34 
 
$
 0.29 
   
17%
                                     
                                                         
                                                         
Amounts attributable to the Company:
                                                       
Earnings from continuing operations
 
$
6,909 
 
$
6,968 
   
(1)%
                                     
Adjustment (net of tax): Non-operating
                                                       
   pension costs/(income)
   
688 
   
344 
                                           
Operating earnings (non-GAAP measure)
 
$
7,597 
 
$
7,312 
   
4%
                                     
                                                         
Operating earnings – diluted earnings
                                                       
   per share
 
$
0.72 
 
$
0.67 
   
7%
                                     
                                                         
(a)  
Refers to the Industrial businesses of the Company including GECC on an equity basis.
 
Dollar amounts and share amounts in millions; per-share amounts in dollars; unaudited. Supplemental data are shown for “GE” and “GECC.” Transactions between GE and GECC have been eliminated from the “Consolidated” columns. See Note 1 to the 2011 consolidated financial statements at www.ge.com/ar2011 for further information about consolidation matters.
 
 
 
(5)
 
 
 

GENERAL ELECTRIC COMPANY
Summary of Operating Segments (unaudited)
 
       
 
Three months ended June 30
 
Six months ended June 30
(Dollars in millions)
 
2012 
   
2011 
   
V%
   
2012 
   
2011 
   
V%
                                   
Revenues(a)
                                 
   Energy Infrastructure
$
11,919 
 
$
10,402 
   
15%
 
$
23,087 
 
$
19,851 
   
16%
   Aviation
 
4,855 
   
4,732 
   
3%
   
9,746 
   
9,100 
   
7%
   Healthcare
 
4,500 
   
4,498 
   
-%
   
8,800 
   
8,588 
   
2%
   Transportation
 
1,565 
   
1,231 
   
27%
   
2,835 
   
2,134 
   
33%
   Home & Business Solutions
 
2,204 
   
2,153 
   
2%
   
4,295 
   
4,142 
   
4%
      Total industrial segment revenues
 
25,043 
   
23,016 
   
9%
   
48,763 
   
43,815 
   
11%
   GE Capital
 
11,458 
   
12,440 
   
(8)%
   
22,900 
   
25,476 
   
(10)%
      Total segment revenues
 
36,501 
   
35,456 
   
3%
   
71,663 
   
69,291 
   
3%
   Corporate items and eliminations(a)
 
– 
   
167 
   
U
   
20 
   
4,661 
   
U
Consolidated revenues and other income from
                                 
   continuing operations
$
36,501 
 
$
35,623 
   
2%
 
$
71,683 
 
$
73,952 
   
(3)%
                                   
Segment profit(a)
                                 
   Energy Infrastructure
$
1,755 
 
$
1,552 
   
13%
 
$
3,279 
 
$
2,933 
   
12%
   Aviation
 
922 
   
959 
   
(4)%
   
1,784 
   
1,800 
   
(1)%
   Healthcare
 
694 
   
711 
   
(2)%
   
1,279 
   
1,242 
   
3%
   Transportation
 
282 
   
178 
   
58%
   
514 
   
335 
   
53%
   Home & Business Solutions
 
91 
   
106 
   
(14)%
   
157 
   
180 
   
(13)%
      Total industrial segment profit
 
3,744 
   
3,506 
   
7%
   
7,013 
   
6,490 
   
8%
   GE Capital
 
2,122 
   
1,615 
   
31%
   
3,914 
   
3,405 
   
15%
      Total segment profit
 
5,866 
   
5,121 
   
15%
   
10,927 
   
9,895 
   
10%
                                   
Corporate items and eliminations(a)
 
(1,465)
   
(684)
   
U
   
(2,510)
   
1,808 
   
U
GE interest and other financial charges
 
(351)
   
(321)
   
(9)%
   
(666)
   
(676)
   
1%
GE provision for income taxes
 
(392)
   
(546)
   
28%
   
(842)
   
(4,059)
   
79%
                                   
Earnings from continuing operations
                                 
   attributable to the Company
 
3,658 
   
3,570 
   
2%
   
6,909 
   
6,968 
   
(1)%
                                   
Earnings (loss) from discontinued operations,
                                 
   net of taxes, attributable to the Company
 
(553)
   
194 
   
U
   
(770)
   
229 
   
U
                                   
Consolidated net earnings attributable
                                 
    to the Company
$
 3,105 
 
$
 3,764 
   
(18)%
 
$
 6,139 
 
$
 7,197 
   
(15)%
                                   
                                   
(a)  
Segment revenues includes both revenues and other income related to the segment. Segment profit excludes results reported as discontinued operations, earnings attributable to noncontrolling interests of consolidated subsidiaries and accounting changes. Segment profit excludes or includes interest and other financial charges and income taxes according to how a particular segment’s management is measured – excluded in determining segment profit, which we sometimes refer to as “operating profit,” for Energy Infrastructure, Aviation, Healthcare, Transportation and Home & Business Solutions; included in determining segment profit, which we sometimes refer to as “net earnings,” for GE Capital. Results of our run-off insurance operations previously reported in Corporate items and eliminations are now reported in GE Capital.
 
 
 
(6)
 
 
 

GENERAL ELECTRIC COMPANY
Summary of Operating Segments (unaudited)
Additional Information
                                   
       
 
Three months ended June 30
 
Six months ended June 30
(Dollars in millions)
 
2012 
   
2011 
   
V%
   
2012 
   
2011 
   
V%
                                   
Energy Infrastructure
                                 
                                   
   Revenues
$
11,919 
 
$
10,402 
   
15%
 
$
23,087 
 
$
19,851 
   
16%
                                   
   Segment profit
$
1,755 
 
$
1,552 
   
13%
 
$
3,279 
 
$
2,933 
   
12%
                                   
   Revenues
                                 
      Energy
$
8,559 
 
$
7,184 
   
19%
 
$
16,601 
 
$
14,291 
   
16%
      Oil & Gas
 
3,658 
   
3,480 
   
5%
   
7,074 
   
6,038 
   
17%
                                   
   Segment profit
                                 
      Energy
$
1,282 
 
$
1,117 
   
15%
 
$
2,464 
 
$
2,232 
   
10%
      Oil & Gas
 
535 
   
483 
   
11%
   
935 
   
789 
   
19%
                                   
GE Capital
                                 
                                   
   Revenues
$
11,458 
 
$
12,440 
   
(8)%
 
$
22,900 
 
$
25,476 
   
(10)%
                                   
   Segment profit
$
2,122 
 
$
1,615 
   
31%
 
$
3,914 
 
$
3,405 
   
15%
                                   
   Revenues
                                 
      Commercial Lending and Leasing (CLL)
$
4,141 
 
$
4,666 
   
(11)%
 
$
8,583 
 
$
9,274 
   
(7)%
      Consumer
 
3,812 
   
4,172 
   
(9)%
   
7,689 
   
8,995 
   
(15)%
      Real Estate
 
876 
   
992 
   
(12)%
   
1,712 
   
1,899 
   
(10)%
      Energy Financial Services
 
446 
   
365 
   
22%
   
685 
   
710 
   
(4)%
      GE Capital Aviation Services (GECAS)
 
1,317 
   
1,327 
   
(1)%
   
2,648 
   
2,652 
   
-%
                                   
   Segment profit (loss)
                                 
      CLL
$
626 
 
$
701 
   
(11)%
 
$
1,311 
 
$
1,255 
   
4%
      Consumer
 
907 
   
1,042 
   
(13)%
   
1,736 
   
2,283 
   
(24)%
      Real Estate
 
221 
   
(335)
   
F
   
277 
   
(693)
   
F
      Energy Financial Services
 
122 
   
139 
   
(12)%
   
193 
   
251 
   
(23)%
      GECAS
 
308 
   
321 
   
(4)%
   
626 
   
627 
   
-%
 
 
 
(7)
 
 
 

GENERAL ELECTRIC COMPANY
Condensed Statement of Financial Position (unaudited)
                             
Financial
 
Consolidated
   
GE(a)
   
Services (GECC)
(Dollars in billions)
 
6/30/12
   
12/31/11
     
6/30/12
   
12/31/11
     
6/30/12
   
12/31/11
                                       
Assets
                                     
   Cash & marketable securities
$
122.2 
 
$
131.9 
   
$
8.7 
 
$
8.4 
   
$
114.2 
 
$
124.1 
   Receivables
 
19.3 
   
19.5 
     
11.3 
   
11.8 
     
– 
   
– 
   Inventories
 
15.4 
   
13.8 
     
15.4 
   
13.7 
     
0.1 
   
0.1 
   Financing receivables - net
 
264.8 
   
279.9 
     
– 
   
– 
     
274.0 
   
288.8 
   Property, plant & equipment - net
 
66.7 
   
65.7 
     
14.7 
   
14.3 
     
52.0 
   
51.4 
   Investment in GECC
 
– 
   
– 
     
77.6 
   
77.1 
     
– 
   
– 
   Goodwill & intangible assets
 
84.1 
   
84.7 
     
55.6 
   
55.9 
     
28.5 
   
28.8 
   Other assets
 
117.1 
   
119.3 
     
37.7 
   
36.7 
     
85.5 
   
88.9 
   Assets of businesses held for sale
 
3.0 
   
0.7 
     
– 
   
– 
     
3.0 
   
0.7 
   Assets of discontinued operations
 
1.5 
   
1.7 
     
– 
   
0.1 
     
1.5 
   
1.7 
                                       
Total assets
$
694.1 
 
$
717.2 
   
$
221.0 
 
$
218.0 
   
$
558.8 
 
$
584.5 
                                       
Liabilities and equity
                                     
   Borrowings and bank deposits
$
428.8 
 
$
453.4 
   
$
11.7 
 
$
11.6 
   
$
418.0 
 
$
443.1 
   Investment contracts, insurance liabilities
                                     
      and insurance annuity benefits
 
27.8 
   
29.8 
     
– 
   
– 
     
28.3 
   
30.2 
   Other liabilities
 
111.4 
   
114.0 
     
88.2 
   
88.8 
     
29.8 
   
31.6 
   Liabilities of businesses held for sale
 
0.3 
   
0.3 
     
– 
   
– 
     
0.3 
   
0.3 
   Liabilities of discontinued operations
 
1.9 
   
1.6 
     
0.2 
   
0.2 
     
1.8 
   
1.5 
   GE shareowners' equity
 
120.1 
   
116.4 
     
120.1 
   
116.4 
     
79.8 
   
77.1 
   Noncontrolling interests
 
3.8 
   
1.7 
     
0.8 
   
1.0 
     
0.8 
   
0.7 
                                       
Total liabilities and equity
$
694.1 
 
$
717.2 
   
$
221.0 
 
$
218.0 
   
$
558.8 
 
$
584.5 
                                       
                                       
  (a)
 
Refers to the Industrial businesses of the Company including GECC on an equity basis.
Supplemental consolidating data are shown for "GE" and "GECC." Transactions between GE and GECC have been eliminated from the "Consolidated" columns. See Note 1 to the 2011 consolidated financial statements at www.ge.com/ar2011 for further information about consolidation matters.
 
 
 
(8)
 
 
 

GENERAL ELECTRIC COMPANY
Financial Measures That Supplement GAAP



We sometimes use information derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. We have referred to operating earnings, operating earnings per share (EPS), Industrial segment organic revenue growth and cash generated from Industrial operating activities (Industrial CFOA). The reconciliations of these measures to the most comparable GAAP measures follow.

Operating Earnings and Operating Earnings Per Share
                 
(Dollars in millions; except earnings per share)
Three Months Ended June 30
   
2012 
   
2011 
   
V%
                 
Earnings from continuing operations attributable to GE
$
 3,658 
 
$
 3,570 
   
2%
Adjustment (net of tax): non-operating pension costs/(income)
 
 352 
   
 181 
     
Operating earnings
$
 4,010 
 
$
 3,751 
   
7%
                 
Earnings per share – diluted(a)
               
Continuing earnings per share
$
 0.34 
 
$
 0.33 
   
3%
Adjustment (net of tax): non-operating pension costs/(income)
 
 0.03 
   
 0.02 
     
Operating earnings per share
$
 0.38 
 
$
 0.34 
   
12%
                 


(a)  
Earnings-per-share amounts are computed independently.  As a result, the sum of per-share amounts may not equal the total.

Operating earnings excludes non-service related pension costs of our principal pension plans comprising interest cost, expected return on plan assets and amortization of actuarial gains/losses. The service cost and prior service cost components of our principal pension plans are included in operating earnings. We believe that these components of pension cost better reflect the ongoing service-related costs of providing pension benefits to our employees. As such, we believe that our measure of operating earnings provides management and investors with a useful measure of the operational results of our business. Other components of GAAP pension cost are mainly driven by market performance, and we manage these separately from the operational performance of our businesses. Neither GAAP nor operating pension costs are necessarily indicative of the current or future cash flow requirements related to our pension plan. We also believe that this measure, considered along with the corresponding GAAP measure, provides management and investors with additional information for comparison of our operating results to the operating results of other companies.
 
 
 
 
 
 
 
(9)
 
 
 

Industrial Segment Organic Revenue Growth
 
Three Months Ended June 30
(Dollars in millions)
 
2012 
   
2011 
   
V%
                 
Segment revenues:
               
    Energy Infrastructure
$
 11,919 
 
$
 10,402 
     
    Aviation
 
 4,855 
   
 4,732 
     
    Healthcare
 
 4,500 
   
 4,498 
     
    Transportation
 
 1,565 
   
 1,231 
     
    Home & Business Solutions
 
 2,204 
   
 2,153 
     
Industrial segment revenues
 
 25,043 
   
 23,016 
   
9%
Less the effects of:
               
     Acquisitions, business dispositions (other than dispositions of business acquired
               
     for investment) and currency exchange rates
 
 99 
   
 287 
     
Industrial segment revenues excluding effects of acquisitions, business dispositions
               
   (other than dispositions of businesses acquired for investment) and currency
               
   exchange rates (Industrial segment organic revenues)
$
 24,944 
 
$
 22,729 
   
10%
                 


Organic revenue growth measures revenue excluding the effects of acquisitions, business dispositions and currency exchange rates.  We believe that this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends.  We also believe that presenting organic revenue growth separately for our industrial businesses provides management and investors with useful information about the trends of our industrial businesses and enables a more direct comparison to other non-financial businesses and companies.  Management recognizes that the term "organic revenue growth" may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.


Industrial CFOA
 
Six Months Ended June 30
(Dollars in millions)
 
2012
   
2011 
   
V%
                 
Cash from GE's operating activities as reported
$
 6,789 
 
$
 4,380 
   
55%
Less: dividends from GECC
 
 3,000 
   
 - 
     
Cash from GE's operating activities excluding dividends
               
   from GECC (Industrial CFOA)
$
 3,789 
 
$
 4,380 
   
(13)%
                 


We define “Industrial CFOA” as GE’s cash from operating activities less the amount of dividends received by GE from GECC. This includes the effects of intercompany transactions, including GE customer receivables sold to GECC; GECC services for trade receivables management and material procurement; buildings and equipment (including automobiles) leased by GE from GECC; information technology (IT) and other services sold to GECC by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GECC from third-party producers for lease to others; and various investments, loans and allocations of GE corporate overhead costs. We believe that investors may find it useful to compare GE’s operating cash flows without the effect of GECC dividends, since these dividends are not representative of the operating cash flows of our industrial businesses and can vary from period to period based upon the results of the financial services businesses. Management recognizes that this measure may not be comparable to cash flow results of companies which contain both industrial and financial services businesses, but believes that this comparison is aided by the provision of additional information about the amounts of dividends paid by our financial services business and the separate presentation in our financial statements of the GECC cash flows. We believe that our measure of Industrial CFOA provides management and investors with a useful measure to compare the capacity of our industrial operations to generate operating cash flow with the operating cash flow of other non-financial businesses and companies and as such provides a useful measure to supplement the reported GAAP CFOA measure.

 
 
(10)