EX-99 2 ex99.htm EXHIBIT 99 ex99.htm
Exhibit 99
 
 
PRESS RELEASE
GE Reports Second-Quarter EPS up 13% to $.52 per Share;
2007 Share Repurchase Program Increased to $14 billion;
Record Orders of $25 billion, up 32%
 
 
2Q ’07 Highlights (Continuing Operations)

§  
Earnings per share (EPS) of $.52, up 13%; Earnings of $5.4 billion, up 12%
§  
Revenues of $42.3 billion, up 12%; Organic revenue growth of 8%
§  
Global revenues of $21.2 billion, up 21%; developing markets revenues of $8.3 billion, up 29%
§  
Total orders of $25 billion, up 32%; major equipment orders of $13.1 billion, up 54%; services orders of $8.1 billion, up 11%
§  
Segment operating profit margin increased 70 basis points to 17%
§  
Share repurchase program increased to $14 billion for 2007, with $12 billion expected to be completed between now and year end  

 
Fairfield, Conn., July 13, 2007– GE announced today record second-quarter 2007 earnings from continuing operations of $5.4 billion or $.52 per share, up 12% and 13%, respectively, from second quarter 2006.  Revenues from continuing operations were $42.3 billion, up 12%, increasing 8% organically.

“Infrastructure and Commercial Finance, which account for 56% of segment profit, led our strong performance this quarter with profit growth of 23% and 18%, respectively,” GE Chairman and CEO Jeff Immelt said.  “Global demand for our Infrastructure products and services is unprecedented with double-digit revenue and earnings growth in Oil & Gas, Aviation, Energy, and Transportation.  Strong global origination at Commercial Finance contributed to double-digit growth in assets, revenues, and earnings.

“We are building a highly visible and sustainable growth pipeline around the world,” Immelt said.  “We are winning with technology and deepening customer relationships through services. Our total orders were up 32% to a record $25 billion, and total backlog grew $18 billion year-over-year, an increase of 42%. Major equipment orders were $13.1 billion, up 54%, and major equipment backlog grew to $44 billion, up 53%. Services orders were up 11%, and our Customer Service Agreement (CSA) backlog stands at $96 billion, up 10%.

“With our strong orders and momentum, we are forecasting third quarter EPS from continuing operations of $.54-.56, up 15-19% over comparable 2006 earnings.  We are reaffirming guidance for the full year and are on track to deliver a solid, low-risk performance in 2007 with high visibility to organic growth. We are increasing our 2007 share repurchase program to $14 billion, with the remaining $12 billion to be allocated over the second half of the year.  The Board of Directors

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increased the program, announced in 2004, to $27 billion and accelerated it by a year to be completed by the end of 2007,” Immelt said.

GE delivered its tenth straight quarter of organic revenue growth of 2-3 times global GDP generated by broad-based services and global market demand. Services revenues were up 12% and global revenues grew 21%, with $8.3 billion from developing markets, up 29%.

GE’s segment profit grew 11% and industrial segment operating profit margin increased 70 basis points to 17%. With year-to-date segment operating profit growth of 120 basis points, the company is on track to meet its goal of 100 basis points of margin expansion for the year.

“For the quarter, GE Money had strong global growth in revenues and assets, and increased segment profit 8% despite a loss at its U.S. mortgage business, WMC,” Immelt said. “We have made the decision to exit this business and substantially reduced our exposure by selling $3.7 billion of WMC loans in the quarter.

“NBC Universal grew segment profit 2% with a strong cable, film, and digital performance.  Its current operating improvements coupled with a successful upfront provides a solid foundation for future performance,” Immelt said.

“At Healthcare, the impact from the Deficit Reduction Act (DRA) and the continued regulatory suspension on shipments of surgical supplies by our OEC business was greater than expected,” Immelt said.  “In the short term, these challenges more than offset strong performances in our other Healthcare businesses. However, the future of this business remains solid.”

In the second quarter, GE realized a $0.5 billion after-tax gain from its nuclear joint venture with Hitachi. At the same time, GE recorded $0.6 billion of restructuring and other charges, including $0.2 billion that was recorded in the GE Money segment.  The company’s consolidated tax rate was 17%, consistent with the first quarter of 2007 and in line with expectations.

Second-Quarter 2007 Financial Highlights:

Earnings from continuing operations were a record $5.4 billion, up 12% from $4.8 billion in second quarter 2006. EPS from continuing operations were $.52, up 13% from last year’s $.46. GE’s Infrastructure and Commercial Finance businesses contributed strong double-digit earnings growth for the quarter.

Continuing revenues grew 12% to a record $42.3 billion. GE industrial sales were $24.3 billion, an increase of 10% from second quarter 2006, reflecting core growth and the net effects of acquisitions.   Financial services revenues grew 11% over last year to $17.1 billion, primarily reflecting core growth.

Cash generated from GE’s continuing operating activities (CFOA) in the first six months of 2007 totaled $11.6 billion, down 16% from $13.8 billion last year.  The decrease was the result of $3.0 billion of lower special dividends from GE Capital Services related to prior year proceeds from sales of insurance holdings, which more than offset an 11% increase from the industrial businesses’ continuing operations.

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Discontinued Operations for the second quarter reflected a $21 million profit, down from last year’s $0.1 billion. Effective in second quarter 2007, discontinued operations for all periods presented include the results of our Plastics business, expected to be sold in third quarter 2007, and the results of our former Advanced Materials business for periods prior to its sale in fourth quarter 2006. Accordingly, second quarter net earnings were $5.4 billion ($.53 per share) in 2007 and $4.9 billion ($.48 per share) in 2006.

“We have made significant changes to drive growth across the company and around the world. We have created a faster growing, higher returning set of businesses through smart acquisitions and dispositions.  We have diligently executed on our ‘growth as a process’ initiative.  We have invested in technology and services to better serve our customers,” Immelt said.  “Our financial goals have been clear: consistent, double-digit earnings growth with expanding margins and increasing returns.  We have delivered another quarter that meets our goals and reflects the power of our portfolio of leading businesses. We are investing and delivering.”

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

* * *

GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world’s toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide.  For more information, visit the company's Web site 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 often contain words such as “expect,” “anticipate,” “intend,” “plan,” believe,” “seek,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest and exchange rates and commodity and equity prices; the commercial and consumer credit environment; the impact of regulation and regulatory and legal actions; strategic actions, including acquisitions and dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; 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.


Media Contact:
Russell Wilkerson, 203.373.3193 (office); 203.581.2114 (mobile)
russell.wilkerson@ge.com

Investor Contact:
Dan Janki, 203.373.2468 (office)
dan.janki@ge.com

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GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
 
 
Consolidated
 
GE
 
Financial
Services (GECS)
 
Three months ended June 30
 
2007
   
2006
 
V
%
 
2007
   
2006
 
V
%
 
2007
   
2006
 
V
%
     
    
   
    
 
       
   
    
   
    
 
        
   
    
   
    
   
Revenues
                                               
Sales of goods and services
$
24,112
 
$
22,607
     
$
24,330
 
$
22,158
     
$
28
 
$
712
     
Other income
 
1,423
   
644
       
1,513
   
682
       
   
     
GECS earnings from continuing operations
 
   
       
2,167
   
2,594
       
   
     
GECS revenues from services
 
16,781
   
14,346
       
   
       
17,076
   
14,595
     
GECS commercial paper interest rate swap adjustment
 
   
148
       
   
       
   
148
     
Total revenues
 
42,316
   
37,745
 
12
%
 
28,010
   
25,434
 
10
%
 
17,104
   
15,455
 
11
%
                                                 
Costs and expenses
                                               
Cost of sales, operating and administrative expenses
 
27,708
   
25,496
       
21,256
   
19,341
       
6,806
   
6,512
     
Interest and other financial charges
 
5,718
   
4,480
       
422
   
439
       
5,540
   
4,196
     
Investment contracts, insurance losses and
                                               
insurance annuity benefits
 
892
   
793
       
   
       
925
   
831
     
Provision for losses on financing receivables
 
1,301
   
896
       
   
       
1,301
   
896
     
Minority interest in net earnings of consolidated affiliates
 
217
   
216
       
179
   
167
       
38
   
49
     
Total costs and expenses
 
35,836
   
31,881
 
12
%
 
21,857
   
19,947
 
10
%
 
14,610
   
12,484
 
17
%
                                                 
Earnings from continuing operations before income taxes
 
6,480
   
5,864
 
11
%
 
6,153
   
5,487
 
12
%
 
2,494
   
2,971
 
(16)
%
Provision for income taxes
 
(1,081
)
 
(1,063
)
     
(754
)
 
(686
)
     
(327
)
 
(377
)
   
Earnings from continuing operations
 
5,399
   
4,801
 
12
%
 
5,399
   
4,801
 
12
%
 
2,167
   
2,594
 
(16)
%
                                                 
Earnings (loss)  from discontinued operations, net of taxes
 
21
   
145
       
21
   
145
       
(1
)
 
(2
)
   
                                                 
Net earnings
$
5,420
 
$
4,946
 
10
%
$
5,420
 
$
4,946
 
10
%
$
2,166
 
$
2,592
 
(16)
%
                                                 
Per-share amounts  -  earnings from continuing operations
                                               
Diluted earnings per share
$
0.52
 
$
0.46
 
13
%
                               
Basic earnings per share
$
0.53
 
$
0.46
 
15
%
                               
                                                 
Per-share amounts - net earnings
                                               
Diluted earnings per share
$
0.53
 
$
0.48
 
10
%
                               
Basic earnings per share
$
0.53
 
$
0.48
 
10
%
                               
                                                 
Total average equivalent shares
                                               
Diluted shares
 
10,303
   
10,400
 
(1)
%
                               
Basic shares
 
10,268
   
10,362
 
(1)
%
                               
                                                 
Dividends declared per share
$
0.28
 
$
0.25
 
12
%
                               
                                                 
 
Dollar amounts and share amounts in millions; per-share amounts in dollars; unaudited. Supplemental consolidating data are shown for “GE” and “GECS.” Transactions between GE and GECS have been eliminated from the “Consolidated” columns. See note 1 to the 2006 consolidated financial statements at www.ge.com/annual06 for further information about consolidation matters.

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GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings

 
 
Consolidated
 
GE
 
Financial
Services (GECS)
 
Six months ended June 30
 
2007
   
2006
 
V
%
 
2007
   
2006
 
V
%
 
2007
   
2006
 
V
%
     
    
   
    
 
       
   
    
   
    
 
        
   
    
   
    
   
Revenues
                                               
Sales of goods and services
$
45,209
 
$
43,871
     
$
45,600
 
$
43,024
     
$
60
 
$
1,267
     
Other income
 
1,934
   
1,094
       
2,087
   
1,160
       
   
     
GECS earnings from continuing operations
 
   
       
5,192
   
4,999
       
   
     
GECS revenues from services
 
33,803
   
28,232
       
   
       
34,378
   
28,721
     
GECS commercial paper interest rate swap adjustment
 
   
356
       
   
       
   
356
     
Total revenues
 
80,946
   
73,553
 
10
%
 
52,879
   
49,183
 
8
%
 
34,438
   
30,344
 
13
%
                                                 
Costs and expenses
                                               
Cost of sales, operating and administrative expenses
 
53,029
   
50,236
       
40,386
   
38,084
       
13,275
   
12,748
     
Interest and other financial charges
 
11,375
   
8,793
       
955
   
788
       
10,864
   
8,290
     
Investment contracts, insurance losses and insurance
                                               
annuity benefits
 
1,752
   
1,542
       
   
       
1,855
   
1,636
     
Provision for losses on financing receivables
 
2,475
   
1,718
       
   
       
2,475
   
1,718
     
Minority interest in net earnings of consolidated affiliates
 
439
   
435
       
308
   
311
       
131
   
124
     
Total costs and expenses
 
69,070
   
62,724
 
10
%
 
41,649
   
39,183
 
6
%
 
28,600
   
24,516
 
17
%
                                                 
Earnings from continuing operations before income taxes
 
11,876
   
10,829
 
10
%
 
11,230
   
10,000
 
12
%
 
5,838
   
5,828
 
0
%
Provision for income taxes
 
(2,010
)
 
(2,015
)
     
(1,364
)
 
(1,186
)
     
(646
)
 
(829
)
   
Earnings from continuing operations
 
9,866
   
8,814
 
12
%
 
9,866
   
8,814
 
12
%
 
5,192
   
4,999
 
4
%
                                                 
Earnings (loss)  from discontinued operations, net of taxes
 
62
   
572
       
62
   
572
       
(3
)
 
261
     
                                                 
Net earnings
$
9,928
 
$
9,386
 
6
%
$
9,928
 
$
9,386
 
6
%
$
5,189
 
$
5,260
 
(1)
%
                                                 
Per-share amounts  -  earnings from continuing operations
                                               
Diluted earnings per share
$
0.96
 
$
0.84
 
14
%
                               
Basic earnings per share
$
0.96
 
$
0.85
 
13
%
                               
                                                 
Per-share amounts - net earnings
                                               
Diluted earnings per share
$
0.96
 
$
0.90
 
7
%
                               
Basic earnings per share
$
0.97
 
$
0.90
 
8
%
                               
                                                 
Total average equivalent shares
                                               
Diluted shares
 
10,306
   
10,441
 
(1)
%
                               
Basic shares
 
10,272
   
10,403
 
(1)
%
                               
                                                 
Dividends declared per share
$
0.56
 
$
0.50
 
12
%
                               

 
Dollar amounts and share amounts in millions; per-share amounts in dollars; unaudited. Supplemental consolidating data are shown for “GE” and “GECS.” Transactions between GE and GECS have been eliminated from the “Consolidated” columns. See note 1 to the 2006 consolidated financial statements at www.ge.com/annual06 for further information about consolidation matters.

 
(5)


 
GENERAL ELECTRIC COMPANY
Summary of Operating Segments (unaudited)
 
 
   
Three Months
   
Six Months
 
   
Ended June 30
   
Ended June 30
 
(Dollars in millions) 
 
2007
   
2006
   
V
 %                   
2007
   
2006
   
V
 %
                                     
Revenues
                                   
Infrastructure
  $
13,913
    $
11,332
     
23
    $
25,896
    $
21,484
     
21
 
Commercial Finance
   
6,383
     
5,527
     
15
     
12,666
     
11,011
     
15
 
GE Money
   
6,145
     
5,268
     
17
     
11,952
     
10,358
     
15
 
Healthcare
   
4,127
     
4,156
      (1 )    
7,768
     
7,815
      (1 )
NBC Universal
   
3,625
     
3,858
      (6 )    
7,109
     
8,340
      (15 )
Industrial
   
6,220
     
6,473
      (4 )    
12,048
     
12,384
      (3 )
Total segment revenues
   
40,413
     
36,614
     
10
     
77,439
     
71,392
     
8
 
Corporate items and eliminations
   
1,903
     
1,131
     
68
     
3,507
     
2,161
     
62
 
                                                 
Consolidated revenues from continuing operations
  $
42,316
    $
37,745
     
12
    $
80,946
    $
73,553
     
10
 
                                                 
Segment profit (a) 
                                               
Infrastructure
  $
2,589
    $
2,107
     
23
    $
4,772
    $
3,810
     
25
 
Commercial Finance
   
1,250
     
1,057
     
18
     
2,671
     
2,231
     
20
 
GE Money
   
952
     
880
     
8
     
1,803
     
1,716
     
5
 
Healthcare
   
731
     
795
      (8 )    
1,251
     
1,291
      (3 )
NBC Universal
   
904
     
882
     
2
     
1,595
     
1,536
     
4
 
Industrial
   
482
     
478
     
1
     
841
     
813
     
3
 
Total segment profit
   
6,908
     
6,199
     
11
     
12,933
     
11,397
     
13
 
                                                 
Corporate items and eliminations
    (333 )     (273 )     (22 )     (748 )     (609 )     (23 )
GE interest and other financial charges
    (422 )     (439 )    
4
      (955 )     (788 )     (21 )
GE provision for income taxes
    (754 )     (686 )     (10 )     (1,364 )     (1,186 )     (15 )
                                                 
Earnings from continuing operations
  $
5,399
    $
4,801
     
12
    $
9,866
    $
8,814
     
12
 
                                                 
Earnings from discontinued operations (net of taxes) 
  $
21
    $
145
      (86 )   $
62
    $
572
      (89 )
                                                 
Consolidated net earnings
  $
5,420
    $
4,946
     
10
    $
9,928
    $
9,386
     
6
 
 
(a)
Segment profit always excludes the effects of principal pension plans, results reported as discontinued operations and accounting changes, and may exclude matters such as charges for restructuring; rationalization and other similar expenses; in-process research and development and certain other acquisition-related charges and balances; technology and product development costs; certain gains and losses from dispositions; and litigation settlements or other charges, responsibility for which preceded the current management team.  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 also refer to as "operating profit," for Healthcare, NBC Universal, and the industrial businesses of the Infrastructure and Industrial segments; included in determining  segment profit, which we also refer to as "net earnings," for Commercial Finance, GE Money, and the financial services businesses of the Infrastructure segment (Aviation Financial Services, Energy Financial Services and Transportation Finance) and the Industrial segment (Equipment Services).
 
(6)

 
GENERAL ELECTRIC COMPANY
Summary of Operating Segments (unaudited)
Additional Information
 
 
 
   
Three Months
   
Six Months
 
   
Ended June 30
   
Ended June 30
 
(Dollars in millions) 
 
2007
   
2006
   
V%
   
2007
   
2006
   
V%
 
                                     
Infrastructure
                                   
Revenues
  $
13,913
    $
11,332
     
23
    $
25,896
    $
21,484
     
21
 
                                                 
Segment profit
  $
2,589
    $
2,107
     
23
    $
4,772
    $
3,810
     
25
 
                                                 
       Revenues
                                               
          Aviation
  $
4,109
    $
3,291
     
25
    $
7,623
    $
6,332
     
20
 
          Aviation Financial Services
   
1,088
     
981
     
11
     
2,337
     
1,915
     
22
 
          Energy
   
5,140
     
4,442
     
16
     
9,533
     
8,277
     
15
 
          Energy Financial Services
   
417
     
364
     
15
     
741
     
665
     
11
 
          Oil & Gas
   
1,822
     
1,094
     
67
     
2,968
     
1,866
     
59
 
          Transportation
   
1,109
     
1,002
     
11
     
2,231
     
2,025
     
10
 
                                                 
        Segment profit
                                               
          Aviation
  $
853
    $
728
     
17
    $
1,608
    $
1,373
     
17
 
          Aviation Financial Services
   
266
     
310
      (14 )    
654
     
516
     
27
 
          Energy
   
894
     
689
     
30
     
1,507
     
1,125
     
34
 
          Energy Financial Services
   
169
     
146
     
16
     
270
     
263
     
3
 
          Oil & Gas
   
190
     
108
     
76
     
291
     
163
     
79
 
          Transportation
   
218
     
165
     
32
     
428
     
369
     
16
 
                                                 
Commercial Finance
                                               
Revenues
  $
6,383
    $
5,527
     
15
    $
12,666
    $
11,011
     
15
 
                                                 
Segment profit
  $
1,250
    $
1,057
     
18
    $
2,671
    $
2,231
     
20
 
                                                 
       Revenues
                                               
          Capital Solutions
  $
3,069
    $
3,047
     
1
    $
5,962
    $
5,867
     
2
 
          Real Estate
   
1,557
     
1,047
     
49
     
3,172
     
2,122
     
49
 
                                                 
       Segment profit
                                               
          Capital Solutions
  $
454
    $
433
     
5
    $
834
    $
772
     
8
 
          Real Estate
   
476
     
334
     
43
     
1,040
     
775
     
34
 
                                                 
Industrial
                                               
Revenues
  $
6,220
    $
6,473
      (4 )   $
12,048
    $
12,384
      (3 )
                                                 
Segment profit
  $
482
    $
478
     
1
    $
841
    $
813
     
3
 
                                                 
       Revenues
                                               
          Consumer & Industrial
  $
3,614
    $
3,852
      (6 )   $
6,847
    $
7,386
      (7 )
          Equipment Services
   
1,755
     
1,797
      (2 )    
3,503
     
3,431
     
2
 
                                                 
       Segment profit
                                               
          Consumer & Industrial
  $
362
    $
318
     
14
    $
629
    $
538
     
17
 
          Equipment Services
   
54
     
60
      (10 )    
73
     
76
      (4 )

 
(7)

 
GENERAL ELECTRIC COMPANY
Condensed Statement of Financial Position
 
 
 
 
Consolidated
 
GE
 
Financial
Services (GECS)
 
(Dollars in billions)
6/30/07
 
12/31/06
 
6/30/07
 
12/31/06
 
6/30/07
 
12/31/06
 
                                     
Assets
                                   
Cash & marketable securities
$
61.0
 
$
62.1
 
$
2.6
 
$
4.8
 
$
58.8
 
$
60.1
 
Receivables
 
12.7
   
13.4
   
13.1
   
13.8
   
   
 
Inventories
 
12.5
   
10.0
   
12.5
   
9.9
   
0.1
   
0.1
 
GECS financing receivables - net
 
350.0
   
334.2
   
   
   
350.1
   
334.2
 
Property, plant & equipment - net
 
76.4
   
70.9
   
13.4
   
12.7
   
63.0
   
58.2
 
Investment in GECS
 
   
   
55.1
   
54.1
   
   
 
Goodwill & intangible assets
 
92.5
   
84.4
   
64.4
   
58.4
   
28.2
   
26.0
 
Other assets
 
124.4
   
113.5
   
36.4
   
33.4
   
93.8
   
86.1
 
Assets of discontinued operations
 
9.0
   
8.7
   
9.0
   
8.7
   
   
 
Total assets
$
738.5
 
$
697.2
 
$
206.5
 
$
195.8
 
$
594.0
 
$
564.7
 
                                     
Liabilities and equity
                                   
Borrowings
$
467.1
 
$
432.8
 
$
12.8
 
$
11.1
 
$
456.4
 
$
426.3
 
Investment contracts, insurance liabilities
                                   
      and insurance annuity benefits
 
34.6
   
34.5
   
   
   
35.0
   
34.8
 
Other liabilities & minority interest
 
117.8
   
115.0
   
75.1
   
70.3
   
47.1
   
49.0
 
Liabilities of discontinued operations
 
2.0
   
2.6
   
1.6
   
2.1
   
0.4
   
0.5
 
Shareowners' equity
 
117.0
   
112.3
   
117.0
   
112.3
   
55.1
   
54.1
 
                                     
                                     
Total liabilities and equity
$
738.5
 
$
697.2
 
$
206.5
 
$
195.8
 
$
594.0
 
$
564.7
 
                                     

June 30, 2007, information is unaudited.  Supplemental consolidating data are shown for “GE” and “GECS.” Transactions between GE and GECS have been eliminated from the “Consolidated” columns. See note 1 to the 2006 consolidated financial statements at www.ge.com/annual06 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.  Specifically, we have referred to organic revenue growth for the three months ended June 30, 2007, compared with the three months ended June 30, 2006; and GE industrial segment operating profit margin excluding the effects of the GE industrial portion of Corporate items and eliminations.  The reasons we use these non-GAAP financial measures and their reconciliation to the most directly comparable GAAP financial measures follow.


 (Dollars in millions)
Three months
ended June 30
 
Organic Revenue Growth – Continuing Operations
 
2007
   
2006
   
V
%
                   
Revenues as reported
$
42,316
 
$
37,745
   
12
%
Less the effects of
                 
Acquisitions, business dispositions (other than dispositions
                 
of businesses acquired for investment)
                 
and currency exchange rates
 
3,547
   
1,623
       
The GECS commercial paper interest rate swap adjustment
 
   
148
       
Revenues excluding the effects of acquisitions,
                 
business dispositions (other than dispositions of
                 
businesses acquired for investment) , currency
                 
exchange rates and the GECS commercial paper
                 
interest rate swap adjustment (organic revenues) 
$
38,769
 
$
35,974
   
8
%

 
   
Three months
 
Three months
 
   
ended June 30, 2007
 
ended June 30, 2006
 
GE Industrial Segment Operating Profit Margin
 
Revenues
   
Op profit
 
Op
profit %
 
Revenues
   
Op profit
 
Op
profit %
V pts.
                               
As reported
                                         
Infrastructure
  $
13,913
    $
2,589
      $
11,332
    $
2,107
     
Industrial
   
6,220
     
482
       
6,473
     
478
     
Healthcare
   
4,127
     
731
       
4,156
     
795
     
NBC Universal
   
3,625
     
904
       
3,858
     
882
     
     
27,885
     
4,706
       
25,819
     
4,262
     
Less the effects of
                                     
Financial services components reported
                                     
in Infrastructure and Industrial
   
3,321
     
504
       
3,182
     
532
     
Inter-company transactions between industrial
                                     
and financial services components
    (147 )    
        (200 )    
     
GE industrial segment operating profit margin
                                     
excluding the effects of the GE industrial portion
                                     
of Corporate items and eliminations
  $
24,711
    $
4,202
 
17.0%
  $
22,837
    $
3,730
 
16.3%
0.7pts.

 
We believe that meaningful analysis of our financial performance requires an understanding of the factors underlying that performance and our judgments about the likelihood that particular factors will repeat.  In some cases, short-term patterns and long-term trends may be obscured by large factors or events.  For example, events or trends in a particular segment may be so significant as to obscure patterns and trends of our industrial or financial services businesses in total.  For this reason, we believe that investors may find it useful to see our revenue growth without the effects of acquisitions, dispositions, currency exchange rates and the GECS commercial paper interest rate swap adjustment; and GE industrial segment operating profit margin excluding the effects of the GE industrial portion of Corporate items and eliminations.
 
 
(9)