GE Reports 4Q’12 Operating EPS $0.44, +13% 4Q Revenues $39.3B +4%, Industrial Organic Growth +8% for total year Operating
GE Reports 4Q’12 Operating EPS $0.44, +13% 4Q Revenues $39.3B +4%,
Industrial Organic Growth +8% for total year Operating margins expand 120
bps over 4Q’11, total year up 30 bps Record backlog of $210B
Business Wire
FAIRFIELD, Conn. -- January 18, 2013
GE (NYSE: GE):
GE CFOA of $7.2B for the quarter, $17.8B for the year, +48%
4Q and Full-Year 2012 Highlights
* Eleventh consecutive quarter of strong operating earnings growth
* 4Q Operating EPS of $0.44, up 13%; Full-year operating EPS of $1.52,
up 16% (up 10% excluding effects of 3Q’11 preferred stock redemption)
* 4Q Continuing EPS of $0.41, up 11%; Full-year continuing EPS of
$1.39, up 12%
* Second consecutive quarter with all Industrial segments reporting positive
earnings growth
* Double-digit earnings growth for five of seven Industrial segments
* 4Q orders up 7% ex. Wind and FX; Growth region orders up 12%
* Margins up 120 bps over prior year period, increases in all seven
Industrial segments
* GE Capital earned $1.8 billion in 4Q, up 9%; GECC Tier 1 common ratio
10.2%
* GE Capital 4Q ending ENI balance $419 billion
GE [NYSE: GE] announced today fourth-quarter 2012 operating earnings of $4.7
billion, or $0.44 per share, both up 13% from the fourth quarter of 2011. GAAP
earnings from continuing operations were $4.3 billion, or $0.41 per share, up
9% and 11% respectively. Revenues were $39.3 billion for the quarter, up 4%,
and $147.4 billion for the year. Industrial segment organic revenue growth was
4% for the quarter and 8% for the year.
“We ended the year with a strong quarter despite the mixed global economic
environment,” said GE Chairman and CEO Jeff Immelt. “The outlook for developed
markets remains uncertain, but we are seeing growth in China and the resource
rich countries. With our largest backlog in history and a substantial amount
of cash generated by our businesses in the fourth quarter, we have great
momentum going into 2013.”
Industrial segment profit rose 12% in the fourth quarter to $4.9 billion. All
Industrial segments had positive earnings growth for the second consecutive
quarter, and five of the seven segments achieved double-digit earnings growth.
All Industrial segments also expanded margins in the quarter, with Industrial
segment margins up 120 basis points over the prior-year period. Infrastructure
orders for the quarter were $28.5 billion, up 2%, and up 7% excluding the
effects of a decrease in orders for wind turbines, and FX. The ratio of
equipment orders received to orders billed (book-to-bill) was 1.2. GE’s
backlog of equipment and services at the end of the quarter was its highest
ever, at $210 billion.
Industrial segment growth market revenues were up 9% for the quarter,
excluding FX. For the year, Industrial segment growth market revenues
increased 11%, driven by double-digit growth in Russia, Australia/New Zealand,
Latin America, China, Sub-Saharan Africa and ASEAN.
Infrastructure order pricing rose 0.5% for the quarter, and four of six
Infrastructure businesses had double-digit growth in orders for equipment,
including Oil & Gas, Energy Management, Aviation, and Transportation. During
the quarter, GE received orders from Petrobras of $0.4 billion for
turbomachinery. GE also announced a $0.2 billion contract to supply subsea
production equipment to Chevron’s Lianzi project and a contract with Renova
Energia in Brazil worth $0.4 billion for 230 GE 1.68-82.5 wind turbines. In
addition, CFM International (a 50/50 joint venture between GE and Snecma)
announced a commitment from Alaska Airlines, the largest in its history, for
the purchase of CFM engines to power 50 new Boeing 737 aircraft.
In 2012, the Company’s long-term investment in research & development led to
the launch of new products like GE’s new power plant technology,
FlexEfficiency™ 60, with turbines based on a design originally developed for
supersonic jet engines. Also this year, GE Transportation introduced a
prototype locomotive, the Tier 4 Evolution® Series, which will be the most
fuel-efficient freight locomotive in its history, with a new combustion system
to meet strict U.S. emission standards. In Industrial Internet applications,
the Company announced nine new industrial service technologies for industries
including energy, healthcare, aviation, rail and manufacturing.
GE Capital progressed with its strategy of a smaller, more focused financial
services business with solid earnings. GE Capital earnings grew 9% in the
quarter and ENI was $419 billion at quarter end. Commercial Real Estate grew
net income to $0.8 billion while shrinking assets by $15 billion. GE Capital
Corporation (GECC) paid a $1.0 billion dividend to the parent in the quarter,
bringing the year-to-date total to $6.4 billion. Its Tier 1 common ratio
remains strong at 10.2%.
Cash generated from GE operating activities rose 48% to $17.8 billion for the
year, with strong Industrial CFOA of $6.2 billion, and total GE CFOA of $7.2
billion, in the fourth quarter. GE ended the quarter with $77 billion of
consolidated cash and cash equivalents.
GE continued to execute on its balanced capital allocation plan. The Company’s
strong cash position enabled the repurchase of $2.1 billion of stock during
the fourth quarter and $5.2 billion of stock for the year. For 2012, GE
returned $12.4 billion to investors through dividends and buybacks. In
December, GE’s Board of Directors raised the Company’s dividend 12% to $0.19
per outstanding share of the Company’s common stock, the fifth increase in
three years.
Also during the quarter, GE announced an agreement to purchase the aviation
business of Avio S.p.A., an Italy-based manufacturer of aviation propulsion
components and systems, for $4.3 billion, a multiple of approximately 8.5x
estimated 2012 earnings before interest, taxes, depreciation and amortization.
The acquisition of Avio’s aviation business, which provides components for GE
Aviation and other engine companies, would further GE’s participation in jet
propulsion, one of the most attractive sectors of the aviation industry.
Immelt concluded, “Facing an uncertain fiscal environment, the GE team had
strong fourth-quarter execution. With our strong backlog and good momentum in
margins, we are well-positioned to achieve our 2013 framework: double-digit
earnings growth and solid organic revenue growth for the Industrial segment,
significant cash returned to the parent company from GE Capital, further
margin expansion, and returning cash to shareholders.”
Fourth-quarter and Full-year 2012 Highlights:
Fourth-quarter operating earnings were $4.7 billion, up 13% from
fourth-quarter 2011, and operating EPS was $0.44, up 13%. GAAP earnings from
continuing operations (attributable to GE) were $4.3 billion, up 9%, or $0.41
per share, up 11% from the fourth quarter of 2011. Positive one-time gains of
$0.01 per share were more than offset by $0.02 per share of restructuring and
other charges.
Including the effects of discontinued operations, fourth-quarter net earnings
attributable to GE were $4.0 billion ($0.38 per share attributable to common
shareowners) in 2012 compared with $3.7 billion ($0.35 per share attributable
to common shareowners) in the fourth quarter of 2011.
Fourth-quarter revenues increased 4% to $39.3 billion. Industrial sales of
$27.3 billion increased 2% compared to the fourth quarter of 2011. GECC
revenues of $11.8 billion increased 2% from last year.
Full-year operating earnings were $16.1 billion, up 8%, from $14.9 billion in
2011, and operating EPS was $1.52, up 16%, and up 10% excluding effects of the
3Q’11 preferred stock redemption. GAAP earnings from continuing operations
(attributable to GE) were $14.7 billion, or $1.39 per share, up 3% and 12%
respectively from 2011.
Including the effects of discontinued operations, full-year net earnings
attributable to GE were $13.6 billion ($1.29 per share attributable to common
shareowners) in 2012 compared with $14.2 billion ($1.23 per share attributable
to common shareowners) in 2011.
Full-year revenues were $147.4 billion, flat with last year and up 3%
excluding the $3.7 billion pre-tax gain on the sale of NBC Universal in 2011.
Industrial sales of $100.9 billion increased 6% from last year. GECC revenues
of $46.0 billion were down 6% from 2011.
Cash generated from GE operating activities in 2012 totaled $17.8 billion, up
48% from $12.1 billion last year. Cash generated from GE Industrial operating
activities in 2012 totaled $11.4 billion, down 5% from last year.
The accompanying tables include information integral to assessing the
Company’s financial position, operating performance and cash flow.
GE will discuss preliminary fourth-quarter and full-year 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; our ability to convert pre-order
commitments into orders; 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.
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
Financial
Consolidated GE(a) Services (GECC)
Three Months
Ended December 2012 2011 V% 2012 2011 V% 2012 2011 V%
31
Revenues and
other income
Sales of goods $ 27,080 $ 26,486 2 % $ 27,301 $ 26,743 2 % $ 29 $ 32 (9 )%
and services
Other income 826 259 830 308 – –
GECC earnings
from – – 1,808 1,660 – –
continuing
operations
GECC revenues 11,421 11,227 – – 11,741 11,545
from services
Total revenues
and other 39,327 37,972 4 % 29,939 28,711 4 % 11,770 11,577 2 %
income
Costs and
expenses
Cost of sales,
operating and 29,233 28,452 24,418 24,027 5,237 4,883
administrative
expenses
Interest and
other 2,960 3,231 393 267 2,708 3,128
financial
charges
Investment
contracts,
insurance
losses and 702 711 – – 713 745
insurance
annuity
benefits
Provision for
losses on 1,163 1,058 – – 1,163 1,058
financing
receivables
Total costs 34,058 33,452 2 % 24,811 24,294 2 % 9,821 9,814 - %
and expenses
Earnings from
continuing
operations 5,269 4,520 17 % 5,128 4,417 16 % 1,949 1,763 11 %
before income
taxes
Benefit
(provision) (818 ) (467 ) (694 ) (402 ) (124 ) (65 )
for income
taxes
Earnings from
continuing 4,451 4,053 10 % 4,434 4,015 10 % 1,825 1,698 7 %
operations
Earnings
(loss) from
discontinued (305 ) (240 ) (305 ) (240 ) (305 ) (240 )
operations,
net of taxes
Net earnings 4,146 3,813 9 % 4,129 3,775 9 % 1,520 1,458 4 %
Less net
earnings
(loss)
attributable 135 83 118 45 17 38
to
noncontrolling
interests
Net earnings
attributable 4,011 3,730 8 % 4,011 3,730 8 % 1,503 1,420 6 %
to the Company
Preferred
stock – – – – (123 ) –
dividends
declared
Net earnings
attributable $ 4,011 $ 3,730 8 % $ 4,011 $ 3,730 8 % $ 1,380 $ 1,420 (3 )%
to GE common
shareowners
Amounts
attributable
to the
Company:
Earnings from
continuing $ 4,316 $ 3,970 9 % $ 4,316 $ 3,970 9 % $ 1,808 $ 1,660 9 %
operations
Earnings
(loss) from
discontinued (305 ) (240 ) (305 ) (240 ) (305 ) (240 )
operations,
net of taxes
Net earnings
attributable $ 4,011 $ 3,730 8 % $ 4,011 $ 3,730 8 % $ 1,503 $ 1,420 6 %
to the Company
Per-share
amounts -
earnings from
continuing
operations
Diluted
earnings per $ 0.41 $ 0.37 11 %
share
Basic earnings $ 0.41 $ 0.38 8 %
per share
Per-share
amounts - net
earnings
Diluted
earnings per $ 0.38 $ 0.35 9 %
share
Basic earnings $ 0.38 $ 0.35 9 %
per share
Total average
equivalent
shares
Diluted shares 10,500 10,591 (1 )%
Basic shares 10,447 10,566 (1 )%
Dividends
declared per $ 0.19 $ 0.17 12 %
common share
Amounts
attributable
to the
Company:
Earnings from
continuing $ 4,316 $ 3,970 9 %
operations
Adjustment
(net of tax):
Non-operating 350 172
pension
costs/(income)
Operating
earnings $ 4,666 $ 4,142 13 %
(non-GAAP
measure)
Operating
earnings –
diluted $ 0.44 $ 0.39 13 %
earnings per
share
(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.
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
Financial
Consolidated GE(a) Services (GECC)
Twelve Months
Ended December 2012 2011 V% 2012 2011 V% 2012 2011 V%
31
Revenues and
other income
Sales of goods $ 100,149 $ 94,523 6 % $ 100,875 $ 95,036 6 % $ 119 $ 148 (20 )%
and services
Other income 2,563 5,064 2,657 5,270 – –
GECC earnings
from – – 7,401 6,584 – –
continuing
operations
GECC revenues 44,647 47,701 – – 45,920 48,920
from services
Total revenues
and other 147,359 147,288 - % 110,933 106,890 4 % 46,039 49,068 (6 )%
income
Costs and
expenses
Cost of sales,
operating and 110,697 105,640 92,728 86,360 19,512 20,582
administrative
expenses
Interest and
other 12,508 14,528 1,353 1,299 11,697 13,866
financial
charges
Investment
contracts,
insurance
losses and 2,857 2,912 – – 2,984 3,059
insurance
annuity
benefits
Provision for
losses on 3,891 3,951 – – 3,891 3,951
financing
receivables
Total costs 129,953 127,031 2 % 94,081 87,659 7 % 38,084 41,458 (8 )%
and expenses
Earnings from
continuing
operations 17,406 20,257 (14 )% 16,852 19,231 (12 )% 7,955 7,610 5 %
before income
taxes
Benefit
(provision) (2,504 ) (5,738 ) (2,013 ) (4,839 ) (491 ) (899 )
for income
taxes
Earnings from
continuing 14,902 14,519 3 % 14,839 14,392 3 % 7,464 6,711 11 %
operations
Earnings
(loss) from
discontinued (1,038 ) (76 ) (1,038 ) (76 ) (1,186 ) (74 )
operations,
net of taxes
Net earnings 13,864 14,443 (4 )% 13,801 14,316 (4 )% 6,278 6,637 (5 )%
Less net
earnings
(loss)
attributable 223 292 160 165 63 127
to
noncontrolling
interests
Net earnings
attributable 13,641 14,151 (4 )% 13,641 14,151 (4 )% 6,215 6,510 (5 )%
to the Company
Preferred
stock – (1,031 ) – (1,031 ) (123 ) –
dividends
declared
Net earnings
attributable $ 13,641 $ 13,120 4 % $ 13,641 $ 13,120 4 % $ 6,092 $ 6,510 (6 )%
to GE common
shareowners
Amounts
attributable
to the
Company:
Earnings from
continuing $ 14,679 $ 14,227 3 % $ 14,679 $ 14,227 3 % $ 7,401 $ 6,584 12 %
operations
Earnings
(loss) from
discontinued (1,038 ) (76 ) (1,038 ) (76 ) (1,186 ) (74 )
operations,
net of taxes
Net earnings
attributable $ 13,641 $ 14,151 (4 )% $ 13,641 $ 14,151 (4 )% $ 6,215 $ 6,510 (5 )%
to the Company
Per-share
amounts -
earnings from
continuing
operations
Diluted
earnings per $ 1.39 $ 1.24 12 %
share
Basic earnings $ 1.39 $ 1.24 12 %
per share
Per-share
amounts - net
earnings
Diluted
earnings per $ 1.29 $ 1.23 5 %
share
Basic earnings $ 1.29 $ 1.24 4 %
per share
Total average
equivalent
shares
Diluted shares 10,564 10,620 (1 )%
Basic shares 10,523 10,591 (1 )%
Dividends
declared per $ 0.70 $ 0.61 15 %
common share
Amounts
attributable
to the
Company:
Earnings from
continuing $ 14,679 $ 14,227 3 %
operations
Adjustment
(net of tax):
Non-operating 1,386 688
pension
costs/(income)
Operating
earnings $ 16,065 $ 14,915 8 %
(non-GAAP
measure)
Operating
earnings –
diluted $ 1.52 $ 1.31 16 %
earnings per
share
Operating
earnings
excluding the
effects of the
preferred $ 1.52 $ 1.38 10 %
stock
redemption -
diluted
earnings per
share
(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.
GENERAL ELECTRIC COMPANY
Summary of Operating Segments (unaudited)
Three months ended December 31 Twelve months ended December 31
(Dollars in 2012 2011 V% 2012 2011 V%
millions)
Revenues(a)
Power & $ 7,652 $ 7,538 2 % $ 28,299 $ 25,675 10 %
Water(b)
Oil & Gas(b) 4,548 4,083 11 % 15,241 13,608 12 %
Energy 1,934 1,954 (1 )% 7,412 6,422 15 %
Management(b)
Aviation 5,467 4,924 11 % 19,994 18,859 6 %
Healthcare 5,183 5,163 - % 18,290 18,083 1 %
Transportation 1,364 1,464 (7 )% 5,608 4,885 15 %
Home & Business 2,068 2,019 2 % 7,967 7,693 4 %
Solutions(b)
Total
industrial 28,216 27,145 4 % 102,811 95,225 8 %
segment
revenues
GE Capital 11,770 11,577 2 % 46,039 49,068 (6 )%
Total segment 39,986 38,722 3 % 148,850 144,293 3 %
revenues
Corporate items
and (659 ) (750 ) 12 % (1,491 ) 2,995 U
eliminations(a)
Consolidated
revenues and
other income $ 39,327 $ 37,972 4 % $ 147,359 $ 147,288 - %
from continuing
operations
Segment
profit(a)
Power & $ 1,747 $ 1,661 5 % $ 5,422 $ 5,021 8 %
Water(b)
Oil & Gas(b) 649 567 14 % 1,924 1,660 16 %
Energy 64 47 36 % 131 78 68 %
Management(b)
Aviation 1,039 850 22 % 3,747 3,512 7 %
Healthcare 1,021 953 7 % 2,920 2,803 4 %
Transportation 252 226 12 % 1,031 757 36 %
Home & Business 115 54 F 311 237 31 %
Solutions(b)
Total
industrial 4,887 4,358 12 % 15,486 14,068 10 %
segment profit
GE Capital 1,808 1,660 9 % 7,401 6,584 12 %
Total segment 6,695 6,018 11 % 22,887 20,652 11 %
profit
Corporate items
and (1,292 ) (1,379 ) 6 % (4,842 ) (287 ) U
eliminations(a)
GE interest and
other financial (393 ) (267 ) (47 )% (1,353 ) (1,299 ) (4 )%
charges
GE provision
for income (694 ) (402 ) (73 )% (2,013 ) (4,839 ) 58 %
taxes
Earnings from
continuing
operations 4,316 3,970 9 % 14,679 14,227 3 %
attributable to
the Company
Earnings (loss)
from
discontinued
operations, net (305 ) (240 ) (27 )% (1,038 ) (76 ) U
of taxes,
attributable to
the Company
Consolidated
net earnings $ 4,011 $ 3,730 8 % $ 13,641 $ 14,151 (4 )%
attributable to
the Company
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, GECC preferred stock dividends declared and
accounting changes. Segment profit excludes or includes interest and
other financial charges and income taxes according to how a particular
(a) segment’s management is measured – excluded in determining segment
profit, which we sometimes refer to as “operating profit,” for Power &
Water, Oil & Gas, Energy Management, 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.
Effective October 1, 2012, we reorganized our former Energy
Infrastructure segment into three segments – Power & Water, Oil & Gas
(b) and Energy Management and we began reporting these as separate segments.
We also reorganized our Home & Business Solutions segment by
transferring our Intelligent Platforms business to Energy Management.
Results for 2012 and prior periods are reported on this basis.
GENERAL ELECTRIC COMPANY
Summary of Operating Segments (unaudited)
Additional Information
Three months ended December 31 Twelve months ended December 31
(Dollars
in 2012 2011 V% 2012 2011 V%
millions)
GE Capital
Revenues $ 11,770 $ 11,577 2 % $ 46,039 $ 49,068 (6 )%
Segment $ 1,808 $ 1,660 9 % $ 7,401 $ 6,584 12 %
profit
Revenues
Commercial
Lending
and $ 4,150 $ 4,392 (6 )% $ 16,857 $ 18,178 (7 )%
Leasing
(CLL)
Consumer 3,979 3,744 6 % 15,579 16,767 (7 )%
Real 994 878 13 % 3,654 3,712 (2 )%
Estate
Energy
Financial 422 292 45 % 1,508 1,223 23 %
Services
GE Capital
Aviation 1,397 1,345 4 % 5,294 5,262 1 %
Services
(GECAS)
Segment
profit
(loss)
CLL $ 544 $ 777 (30 )% $ 2,423 $ 2,720 (11 )%
Consumer 755 617 22 % 3,240 3,703 (13 )%
Real 309 (153 ) F 803 (928 ) F
Estate
Energy
Financial 107 110 (3 )% 432 440 (2 )%
Services
GECAS 343 315 9 % 1,220 1,150 6 %
GENERAL ELECTRIC COMPANY
Condensed Statement of Financial Position (unaudited)
Financial
Consolidated GE(a) Services (GECC)
(Dollars in 12/31/12 12/31/11 12/31/12 12/31/11 12/31/12 12/31/11
billions)
Assets
Cash &
marketable $ 125.7 $ 131.9 $ 15.6 $ 8.4 $ 110.2 $ 124.1
securities
Receivables 21.5 19.5 10.9 11.8 – –
Inventories 15.4 13.8 15.3 13.7 0.1 0.1
Financing
receivables - 258.0 279.9 – – 269.0 288.8
net
Property,
plant & 69.7 65.7 16.0 14.3 53.7 51.4
equipment -
net
Investment in – – 77.9 77.1 – –
GECC
Goodwill &
intangible 85.4 84.7 56.8 55.9 28.6 28.8
assets
Other assets 108.3 119.3 38.0 36.7 76.3 88.9
Assets of
businesses 0.2 0.7 – – 0.2 0.7
held for sale
Assets of
discontinued 1.1 1.7 – 0.1 1.1 1.7
operations
Total assets $ 685.3 $ 717.2 $ 230.5 $ 218.0 $ 539.2 $ 584.5
Liabilities
and equity
Borrowings and $ 414.1 $ 453.4 $ 17.5 $ 11.6 $ 397.3 $ 443.1
bank deposits
Investment
contracts,
insurance
liabilities 28.3 29.8 – – 28.7 30.2
and insurance
annuity
benefits
Other 112.0 114.0 89.1 88.8 28.1 31.6
liabilities
Liabilities of
businesses 0.2 0.3 – – 0.2 0.3
held for sale
Liabilities of
discontinued 2.3 1.6 0.1 0.2 2.3 1.5
operations
GE
shareowners' 123.0 116.4 123.0 116.4 81.9 77.1
equity
Noncontrolling 5.4 1.7 0.8 1.0 0.7 0.7
interests
Total
liabilities $ 685.3 $ 717.2 $ 230.5 $ 218.0 $ 539.2 $ 584.5
and equity
(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.
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), operating EPS
excluding the effects of the third-quarter 2011 preferred stock
redemption, total revenues excluding the effect of a pre-tax gain on the
sale of NBC Universal (NBCU) in 2011, Industrial segment organic revenue
growth, GE Capital ending net investment (ENI) excluding cash and
equivalents and cash generated from GE 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 Three Months Ended December 31
earnings per share)
2012 2011 V%
Earnings from continuing operations $4,316 $3,970 9%
attributable to GE
Adjustment (net of tax): 350 172
non-operating pension costs/(income)
Operating earnings $4,666 $4,142 13%
Earnings per share – diluted(a)
Continuing earnings per share $0.41 $0.37 11%
Adjustment (net of tax): 0.03 0.02
non-operating pension costs/(income)
Operating earnings per share $0.44 $0.39 13%
Twelve Months Ended December 31
(Dollars in millions; except 2012 2011 V%
earnings per share)
Earnings from continuing operations $14,679 $14,227 3%
attributable to GE
Adjustment (net of tax): 1,386 688
non-operating pension costs/(income)
Operating earnings $16,065 $14,915 8%
Earnings per share – diluted(a)
Continuing earnings per share $1.39 $1.24 12%
Adjustment (net of tax): 0.13 0.06
non-operating pension costs/(income)
Operating earnings per share 1.52 1.31 16%
Less: Effects of the third-quarter - 0.08
2011 preferred stock redemption
Operating EPS excluding the effects
of the third-quarter 2011 preferred $1.52 $1.38 10%
stock redemption
(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.
Total Revenues Excluding the Effect of a Pre-Tax Gain on the Sale of NBCU
in 2011
(Dollars in millions) Twelve Months Ended December 31
2012 2011 V%
Total revenues and other income $ 147,359 $ 147,288 - %
Less the effect of a pre-tax gain on - 3,705
the sale of NBCU in 2011
Total revenues and other income less
the effect a pre-tax gain on the
sale of NBCU in 2011 (total revenues $ 147,359 $ 143,583 3 %
excluding the pre-tax gain on the
sale of NBCU in 2011)
We believe that this measure provides management and investors with a more
complete understanding of underlying operating results and revenue trends by
excluding the effects of a gain related to the sale of a business, which can
obscure underlying trends.
Industrial Segment Organic Revenue
Growth
Three Months Ended December 31
(Dollars in millions) 2012 2011 V%
Segment revenues:
Power & Water $ 7,652 $ 7,538
Oil & Gas 4,548 4,083
Energy Management 1,934 1,954
Aviation 5,467 4,924
Healthcare 5,183 5,163
Transportation 1,364 1,464
Home & Business Solutions 2,068 2,019
Industrial segment revenues 28,216 27,145 4 %
Less the effects of:
Acquisitions, business dispositions
(other than dispositions of (24 ) 40
businesses acquired for investment)
and currency exchange rates
Industrial segment revenues
excluding effects of acquisitions,
business dispositions (other than
dispositions of businesses acquired $ 28,240 $ 27,105 4 %
for investment) and currency
exchange rates (Industrial segment
organic revenues)
Twelve Months Ended December 31
(Dollars in millions) 2012 2011 V%
Segment revenues:
Power & Water $ 28,299 $ 25,675
Oil & Gas 15,241 13,608
Energy Management 7,412 6,422
Aviation 19,994 18,859
Healthcare 18,290 18,083
Transportation 5,608 4,885
Home & Business Solutions 7,967 7,693
Industrial segment revenues 102,811 95,225 8 %
Less the effects of:
Acquisitions, business dispositions
(other than dispositions of 972 1,112
businesses acquired for investment)
and currency exchange rates
Industrial segment revenues
excluding effects of acquisitions,
business dispositions (other than
dispositions of businesses acquired $ 101,839 $ 94,113 8 %
for investment) and currency
exchange rates (Industrial segment
organic revenues)
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.
GE Capital Ending Net Investment (ENI), Excluding
Cash and Equivalents
December 31,
(In billions) 2012
GECC total assets $ 539.2
Less assets of discontinued operations (1.1 )
Less non-interest bearing liabilities (57.6 )
GE Capital ENI 480.5
Less cash and equivalents (61.9 )
GE Capital ENI, excluding cash and equivalents $ 418.6
We use ENI to measure the size of our GE Capital segment. We believe that this
measure is a useful indicator of the capital (debt or equity) required to fund
a business as it adjusts for non-interest bearing current liabilities
generated in the normal course of business that do not require a capital
outlay. We also believe that by excluding cash and equivalents, we provide a
meaningful measure of assets requiring capital to fund our GE Capital segment
as a substantial amount of this cash resulted from debt issuances to pre-fund
future debt maturities and will not be used to fund additional assets.
Providing this measure will help investors measure how we are performing
against our previously communicated goal to reduce the size of our financial
services segment.
Industrial CFOA
Three Months Ended December 31
(Dollars in millions) 2012 2011 V%
Cash from GE's operating activities $ 7,174 $ 5,513 30 %
as reported
Less dividends from GECC 980 –
Cash from GE's operating activities
excluding dividends from GECC $ 6,194 $ 5,513 12 %
(Industrial CFOA)
Twelve Months Ended December 31
(Dollars in millions) 2012 2011 V%
Cash from GE's operating activities $ 17,826 $ 12,057 48 %
as reported
Less dividends from GECC 6,426 –
Cash from GE's operating activities
excluding dividends from GECC $ 11,400 $ 12,057 (5 )%
(Industrial CFOA)
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.
Contact:
GE
Investors:
Trevor Schauenberg, 203-373-2424 (office)
trevor.a.schauenberg@ge.com
or
Media:
Seth Martin, 203-572-3567 (cell)
seth.martin@ge.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement
Rate this Page