GE Reports 2Q’14 Operating EPS $0.39, +8%; 2Q Industrial Organic Revenues +5%; Segment Profit +9%; 2Q Operating Margins Up 20

  GE Reports 2Q’14 Operating EPS $0.39, +8%; 2Q Industrial Organic Revenues
  +5%; Segment Profit +9%; 2Q Operating Margins Up 20 Basis Points; Backlog of
  $246B, Up $23B from Year-Ago; Retail Finance IPO Targeted for End of July;
  Total-Year Framework on Track

Business Wire

FAIRFIELD, Conn. -- July 18, 2014

GE [NYSE:GE]:

                                2Q Highlights

  *2Q operating EPS $0.39, +8%
  *2Q Industrial segment revenues +7%
  *Growth market orders +14%, revenues +6%
  *Services orders +14%, revenues +5%
  *1H margins +30 bps vs. year-ago
  *Cash generation of $3.4 billion year-to-date, including $1.4 billion GECC
    dividend
  *GE Capital ENI (excluding cash and equivalents) at $371 billion, down 5%
    vs. year-ago

GE [NYSE: GE] announced today second-quarter 2014 operating earnings of $3.9
billion, with operating earnings per share of $0.39, up 8% from the second
quarter of 2013. GAAP earnings from continuing operations were $3.6 billion,
with earnings per share of $0.35, up 13% from last year. Revenues were $36.2
billion for the quarter, up 3% from the year-ago period.

“GE had a good performance in the quarter and in the first half of 2014, with
double-digit industrial segment profit growth, 30 basis points of margin
expansion, and nearly $6 billion returned to shareholders,” said GE Chairman
and CEO Jeff Immelt. “The environment continues to be generally positive.”

Industrial segment profits rose 9% in the second quarter to $4.2 billion.
Industrial segment margins expanded 20 basis points over the prior-year
period. Industrial segment revenues grew 7%, with organic growth of 5%. Growth
market revenues were up 6% for the quarter, and growth market orders rose 14%,
with increases in six of nine growth regions. Services revenues were up 5%,
and services orders rose 14%.

GE’s backlog of equipment and services at the end of the quarter was $246
billion, up $23 billion over the year-ago period with increases in every
segment. The Company’s investment in technology was reflected in its launch
order during the quarter for Tier 4 locomotives, nine HA gas turbines to date,
and its order for the oil and gas industry’s first 20k-psi rated deepwater
drilling system. This week, GE and CFM (a 50/50 joint venture between GE and
Snecma) also announced Farnborough Airshow wins of more than $36 billion at
list price, including $13 billion with Emirates, $3.3 billion with easyJet,
and $2.6 billion with American Airlines.

During the quarter, GE’s offer for Alstom’s Power and Grid businesses was
accepted by the Alstom board and approved by the French government. It is
proceeding to works council consultations and is subject to Alstom shareholder
approval and customary regulatory approvals. The deal is targeted to close in
2015. GE expects Alstom to be accretive to earnings in 2015, and add $0.06 to
$0.09 per share in 2016. This will accelerate the Company’s portfolio strategy
to achieve 75% of earnings from its Industrial business by 2016.

GE Capital continued its strategy to decrease the size of its non-core
portfolio. ENI (excluding cash and equivalents) was at $371 billion at
quarter-end, down $2.4 billion from last quarter and down 5% from the year-ago
period. General Electric Capital Corporation’s (GECC) estimated Tier 1 common
ratio (Basel 1) rose 51 basis points from the year-ago period to 11.7%, and
net interest margin was strong at 5%. Through the first half of the year, GECC
has returned $1.4 billion in dividends to the parent. GECC recorded tax
benefits in the quarter to reflect a lower expected tax rate for 2014,
primarily driven by its planned tax-efficient disposition of the consumer bank
in the Nordics.

GE is also announcing today that it is targeting the IPO of its North American
Retail Finance business (Synchrony Financial) for the end of July, the first
step in a planned, staged exit from that business.

GE continues to make good progress with its simplification goals. The Company
is on track to meet its goal of $1 billion or more in structural cost-out for
the year, with $382 million of cost-out through the first half of 2014.

Cash from GE operating activities (CFOA) was $3.4 billion year-to-date. GE
ended the quarter with $87 billion of consolidated cash and cash equivalents.
The Company has returned $5.9 billion to shareowners year-to-date, including
$4.4 billion of dividends and $1.5 billion of stock buyback.

Immelt concluded, “Our total-year framework is on track and we are committed
to delivering for our investors. Investments in R&D are paying off in
Industrial segment growth and the share gains we see across the board are
reinforced by the Farnborough Airshow this week. GE Capital is returning cash
to the parent while becoming more focused on its core business. Our balanced
approach to capital allocation is delivering cash to shareowners. With the
Retail Finance split-off and Alstom acquisition, we are boldly repositioning
the Company for the future.”

Second-quarter Highlights:

Second-quarter operating earnings were $3.9 billion, up 7% from second-quarter
2013, and operating EPS was $0.39, up 8%. GAAP earnings from continuing
operations (attributable to GE) were $3.6 billion, up 10%, or $0.35 per share,
up 13% from the second quarter of 2013.

Including the effects of discontinued operations, second-quarter net earnings
attributable to GE were $3.5 billion ($0.35 per share) compared with $3.1
billion ($0.30 per share) in the second quarter of 2013.

Second-quarter revenues increased 3% to $36.2 billion. Industrial sales of
$26.2 billion increased 7% compared to the second quarter of 2013. GECC
revenues of $10.2 billion decreased 6% from last year.

Cash generated from GE operating activities year-to-date totaled $3.4 billion.
Cash generated from Industrial operating activities totaled $2.0 billion.

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 are now posted on
our website for your review 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.

GE’s Investor Relations website at www.ge.com/investor and our corporate blog
at www.gereports.com, as well as GE’s Facebook page and Twitter accounts,
including @GE_Reports, contain a significant amount of information about GE,
including financial and other information for investors. GE encourages
investors to visit these websites from time to time, as information is updated
and new information is posted.

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,” “will,” or “would.”
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
sovereign debt situations; 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; 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 flows and earnings and other conditions which may affect our ability
to pay our quarterly dividend at the planned level or to repurchase shares at
planned levels; GECC’s ability to pay dividends to GE at the planned level,
which may be affected by GECC's cash flows and earnings, financial services
regulation and oversight, and other factors; our ability to convert pre-order
commitments/wins into orders; the price we realize on orders since
commitments/wins are stated at list prices; the level of demand and financial
performance of the major industries we serve, including, without limitation,
air and rail transportation, power generation, oil and gas production, 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; our capital allocation plans, as such plans may
change including with respect to the timing and size of share repurchases,
acquisitions, joint ventures, dispositions and other strategic actions; our
success in completing announced transactions and integrating acquired
businesses; adverse market conditions, timing of and ability to obtain
required bank regulatory approvals, or other factors relating to us or
Synchrony Financial could prevent us from completing the Synchrony IPO and
split-off as planned; our ability to complete the proposed transactions and
alliances with Alstom and realize anticipated earnings and savings; 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.

This document includes certain forward-looking projected financial information
that is based on current estimates and forecasts. Actual results could differ
materially.

                                                                                                                                                                                    
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
(unaudited)
                                                                                                
                           Consolidated                                           GE(a)                                               Financial Services (GECC)
Three Months            2014         2013       V%           2014         2013       V%         2014         2013       V%
Ended June 30
Revenues and                                                                                                                                                      
other income
Sales of goods             $     26,098       $     24,502         7%             $     26,226       $     24,623         7%          $     34           $     31             10%
and services
Other income                     338                104                                 292                2                                -                  -
GECC earnings
from                             -                  -                                   1,864              1,924                            -                  -
continuing
operations
GECC revenues           9,797        10,453                 -            -                    10,213       10,885     
from services
Total revenues
and other               36,233       35,059     3%           28,382       26,549     7%         10,247       10,916     (6)%
income
                                                                                                                                                                                      
Costs and
expenses
Cost of sales,
operating and
administrative
expenses                         28,483             27,029                              23,997             22,520                           4,852              4,836
Interest and
other                            2,345              2,600                               400                326                              2,071              2,388
financial
charges
Investment
contracts,
insurance
losses and
insurance
annuity                          658                687                                 -                  -                                698                728
benefits
Provision for
losses on               968          1,010                  -            -                    968          1,010      
financing
receivables
Total costs             32,454       31,326     4%           24,397       22,846     7%         8,589        8,962      (4)%
and expenses
                                                                                                                                                                                      
Earnings from
continuing
operations
before income                    3,779              3,733          1%                   3,985              3,703          8%                1,658              1,954          (15)%
taxes
Benefit
(provision)             (193)        (310)                  (409)        (297)                216          (13)       
for income
taxes
Earnings from
continuing                       3,586              3,423          5%                   3,576              3,406          5%                1,874              1,941          (3)%
operations
Earnings
(loss) from
discontinued
operations,             (41)         (124)                  (41)         (124)                (36)         (123)      
net of taxes
Net earnings                     3,545              3,299          7%                   3,535              3,282          8%                1,838              1,818          1%
Less net
earnings
(loss)
attributable
to
noncontrolling          -            166                    (10)         149                  10           17         
interests
Net earnings
attributable
to the Company                   3,545              3,133          13%                  3,545              3,133          13%               1,828              1,801          1%
Preferred
stock                   -            -                      -            -                    (161)        (135)      
dividends
declared
Net earnings
attributable
to
GE common            $   3,545     $   3,133      13%       $   3,545     $   3,133      13%     $   1,667     $   1,666      - %
shareowners
                                                                                                                                                                                      
                                                                                                                                                                                      
Amounts
attributable
to GE common
shareowners:
Earnings from
continuing                 $     3,586        $     3,423          5%             $     3,576        $     3,406          5%          $     1,874        $     1,941          (3)%
operations
Less net
earnings
(loss)
attributable
to
noncontrolling          -            166                    (10)         149                  10           17         
interests
Earnings from
continuing
operations
attributable                     3,586              3,257          10%                  3,586              3,257          10%               1,864              1,924          (3)%
to the Company
GECC preferred
stock                   -            -                      -            -                    (161)        (135)      
dividends
declared
Earnings from
continuing
operations
attributable
to GE common                     3,586              3,257          10%                  3,586              3,257          10%               1,703              1,789          (5)%
shareowners
Earnings
(loss) from
discontinued
operations,             (41)         (124)                  (41)         (124)                (36)         (123)      
net of taxes
Net earnings
attributable
to GE
common               $   3,545     $   3,133      13%       $   3,545     $   3,133      13%     $   1,667     $   1,666      - %
shareowners
                                                                                                                                                                                      
Per-share
amounts -
earnings from
continuing
operations
Diluted
earnings per               $     0.35         $     0.31           13%
share
Basic earnings             $     0.36         $     0.32           13%
per share
                                                                                                                                                                                      
Per-share
amounts - net
earnings
Diluted
earnings per               $     0.35         $     0.30           17%
share
Basic earnings             $     0.35         $     0.30           17%
per share
                                                                                                                                                                                      
Total average
equivalent
shares
Diluted shares                   10,110             10,328         (2)%
Basic shares                     10,031             10,263         (2)%
                                                                                                                                                                                      
Dividends
declared per               $     0.22         $     0.19           16%
common share
                                             
                                                                                                                                                                                      
Amounts
attributable
to GE common
shareowners:
Earnings from
continuing                 $     3,586        $     3,257          10%
operations
Adjustment
(net of tax):
Non-operating
pension                 344          430        
costs/(income)
Operating
earnings             $   3,930     $   3,687      7%
(non-GAAP
measure)
                                                                                                                                                                                      
Operating
earnings –
diluted
earnings
per share            $   0.39      $   0.36       8%                                                                 

(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.
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
2013 consolidated financial statements at www.ge.com/ar2013 for further
information about consolidation matters.

                                                                                                                                                                                    
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
(unaudited)
                                                                                                 
                             Consolidated                                         GE(a)                                                Financial Services (GECC)
Six Months               2014         2013       V%          2014         2013       V%          2014         2013       V%
Ended June 30
Revenues and                                                                                                                                                       
other income
Sales of goods               $     49,948       $     46,689         7%           $     50,237       $     46,926         7%           $     61           $     57             7%
and services
Other income                       534                1,719                             453                1,622                             –                  –
GECC earnings
from                               –                  –                                 3,797              3,862                             –                  –
continuing
operations
GECC revenues            19,929       21,594                –            –                     20,701       22,327     
from services
Total revenues
and other                70,411       70,002     1%          54,487       52,410     4%          20,762       22,384     (7)%
income
                                                                                                                                                                                      
Costs and
expenses
Cost of sales,
operating and
administrative
expenses                           55,201             53,110                            46,490             44,013                            9,451              9,743
Interest and
other                              4,759              5,203                             765                650                               4,232              4,770
financial
charges
Investment
contracts,
insurance
losses and
insurance
annuity                            1,278              1,350                             –                  –                                 1,341              1,417
benefits
Provision for
losses on                1,938        2,467                 –            –                     1,938        2,467      
financing
receivables
Total costs              63,176       62,130     2%          47,255       44,663     6%          16,962       18,397     (8)%
and expenses
                                                                                                                                                                                      
Earnings from
continuing
operations
before income                      7,235              7,872          (8)%               7,232              7,747          (7)%               3,800              3,987          (5)%
taxes
Benefit
(provision)              (709)        (818)                 (727)        (721)                 18           (97)       
for income
taxes
Earnings from
continuing                         6,526              7,054          (7)%               6,505              7,026          (7)%               3,818              3,890          (2)%
operations
Earnings
(loss) from
discontinued
operations,              (29)         (244)                 (29)         (244)                 (24)         (243)      
net of taxes
Net earnings                       6,497              6,810          (5)%               6,476              6,782          (5)%               3,794              3,647          4%
Less net
earnings
(loss)
attributable
to
noncontrolling           (47)         150                   (68)         122                   21           28         
interests
Net earnings
attributable
to the Company               $     6,544        $     6,660          (2)%         $     6,544        $     6,660          (2)%         $     3,773        $     3,619          4%
Preferred
stock                    –            –                     –            –                     (161)        (135)      
dividends
declared
Net earnings
attributable
to
GE common             $   6,544     $   6,660      (2)%     $   6,544     $   6,660      (2)%     $   3,612     $   3,484      4%
shareowners
                                                                                                                                                                                      
Amounts
attributable
to GE common
shareowners:
Earnings from
continuing                   $     6,526        $     7,054          (7)%         $     6,505        $     7,026          (7)%         $     3,818        $     3,890          (2)%
operations
Less net
earnings
(loss)
attributable
to
noncontrolling           (47)         150                   (68)         122                   21           28         
interests
Earnings from
continuing
operations
attributable                       6,573              6,904          (5)%               6,573              6,904          (5)%               3,797              3,862          (2)%
to the Company
GECC preferred
stock                    –            –                     –            –                     (161)        (135)      
dividends
declared
Earnings from
continuing
operations
attributable
to GE common                       6,573              6,904          (5)%               6,573              6,904          (5)%               3,636              3,727          (2)%
shareowners
Earnings
(loss) from
discontinued
operations,              (29)         (244)                 (29)         (244)                 (24)         (243)      
net of taxes
Net earnings
attributable
to GE
common                $   6,544     $   6,660      (2)%     $   6,544     $   6,660      (2)%     $   3,612     $   3,484      4%
shareowners
                                                                                                                                                                                      
Per-share
amounts -
earnings from
continuing
operations
Diluted
earnings per                 $     0.65         $     0.66           (2)%
share
Basic earnings               $     0.65         $     0.67           (3)%
per share
                                                                                                                                                                                      
Per-share
amounts - net
earnings
Diluted
earnings per                 $     0.65         $     0.64           2%
share
Basic earnings               $     0.65         $     0.65           - %
per share
                                                                                                                                                                                      
Total average
equivalent
shares
Diluted shares                     10,120             10,374         (2)%
Basic shares                       10,041             10,310         (3)%
                                                                                                                                                                                      
Dividends
declared per          $   0.44      $   0.38       16%
common share
                                                                                                                                                                                      
Amounts
attributable
to GE common
shareowners:
Earnings from
continuing                   $     6,573        $     6,904          (5)%
operations
Adjustment
(net of tax):
Non-operating
pension                  686          853        
costs/(income)
Operating
earnings              $   7,259     $   7,757      (6)%
(non-GAAP
measure)
                                                                                                                                                                                      
Operating
earnings –
diluted
earnings
per share             $   0.72      $   0.75       (4)%                                                               

(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.
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
2013 consolidated financial statements at www.ge.com/ar2013 for further
information about consolidation matters.

<td class="bwpadl0 bwno*Story too large*
GENERAL ELECTRIC COMPANY                                                                    
Summary of Operating Segments
(unaudited)
                                                            
                          Three months ended June 30                       Six months ended
                                                                           June 30
(Dollars
in                   2014        2013    
millions)

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