EX-99 2 ex99.htm EXHIBIT 99 Exhibit 99
Exhibit 99
 
GE Logo
 

PRESS RELEASE

GE Reports Record Financial Results for Full-Year and Fourth-Quarter 2005

Financial Highlights (Continuing Operations)
 
§  Record 2005 revenues of $149.7 billion, up 11%; organic revenue growth of 8%
§  Record 2005 earnings of $18.3 billion, up 12%; Earnings per share (EPS) of $1.72, up 10%
§  All six GE businesses delivered double-digit earnings growth for the year
§  Record 2005 cash from operating activities (CFOA) up 42% to $21.6 billion, Industrial CFOA up 14%
§  Increased 2006 EPS growth outlook to $1.94-2.02, up 13-17% over 2005; 1Q ’06 EPS of $.38-.40, up 15-21%
 


Fairfield, Conn., January 20, 2006 - GE announced today record full-year 2005 earnings from continuing operations of $18.3 billion, or $1.72 per share, up 12% and 10% from 2004. Full-year revenues from continuing operations were also a record $149.7 billion, up 11%, increasing 8% organically. Cash flow from GE’s operating activities in 2005 increased 42% to $21.6 billion.

“We finished 2005 as we expected with a strong quarter in our business segments that capped an excellent year,” said GE Chairman and CEO Jeff Immelt. “This year we executed on our organic growth initiatives, strengthened our organization and improved our portfolio, including the continued exit from the majority of our insurance businesses.

“Looking into 2006, the current economic environment remains positive and is in line with our expectations: we see continued strong growth in Asia and developing markets, mid single-digit growth in the Americas, and slow growth in Europe. This is the kind of environment that plays well to GE’s products and services strengths.

“Our business fundamentals remain strong. Total year orders were up 10% in 2005, with demand coming from all the businesses. Our equipment backlog was $24 billion at year end and our multi-year services agreements increased to $87 billion, up 15%. We have good visibility into the increasing demand for our products and services in 2006.

 

 

“Growth is also fueling robust cash flow. GE’s CFOA is up 42%, with Industrial CFOA up 14% over 2004. With these funds we increased the quarterly dividend for the 30th straight year and we expanded our stock buyback program from $15 billion through 2007 to $25 billion through 2008. In 2005, we eliminated the remaining parent-supported debt at GE Capital Services ahead of schedule, and we purchased $5 billion of stock, a 67% increase over what we committed to earlier in the year. We plan to repurchase $7-9 billion of our stock in 2006.”  

Highlights of Preliminary Full-Year and Fourth-Quarter 2005 Results

§  
Full-year earnings from continuing operations were a record $18.3 billion, up 12% from $16.3 billion in 2004, with comparable EPS of $1.72 up 10% from last year’s $1.56. All six of GE’s businesses contributed solid double-digit earnings growth for the year.

§  
Full-year continuing revenues grew 11% to a record $149.7 billion. Industrial sales rose 10% to $90.4 billion, reflecting solid core growth and the net effects of acquisitions. Financial services revenues increased 12% to $59.3 billion.

§  
Fourth-quarter earnings from continuing operations were $5.772 billion ($.55 per share), up from $5.718 billion ($.54 per share) in fourth quarter 2004. Five of GE’s six businesses contributed solid double-digit earnings growth. Earnings growth excluding the previously announced correction for Statement of Financial Accounting Standards (SFAS) 133 and the effects of dispositions of GE’s ownership interest in Gecis (now Genpact) was 11%.

§  
Fourth-quarter continuing revenues were $40.7 billion, up 3% from $39.7 billion in fourth quarter 2004. Industrial sales increased 4% to $25.6 billion reflecting core growth and the net effects of acquisitions. Financial services revenues of $15.1 billion were about the same as last year, reflecting lower asset sales and the effects of dispositions. Financial services revenue growth excluding the previously announced correction for SFAS 133 and the effects of dispositions of GE’s ownership interest in Gecis (now Genpact) was 5%.

§  
Cash generated from GE’s operating activities in 2005 totaled $21.6 billion, up 42% from $15.2 billion last year, reflecting a 14% increase from the industrial businesses. The GE Capital Services dividend of $7.8 billion for the year was up $4.7 billion over last year, reflecting strong operating results and cash from dispositions.

§  
Discontinued operations include the results of the majority of our Insurance businesses, GE Insurance Solutions and Genworth. Consistent with previous guidance, discontinued operations results in fourth quarter 2005 were a net loss of $2.7 billion, including a $2.9 billion loss at GE Insurance Solutions and $0.2 billion earnings from Genworth. Accordingly, fourth-quarter net earnings were $3.1 billion ($.29 per share) in 2005 and $5.6 billion ($.53 per share) in the prior year. For the year, the net loss from discontinued operations was $1.9 billion in 2005 compared with net earnings of $0.5 billion in 2004. Accordingly, net earnings were $16.4 billion ($1.54 per share) in 2005 and $16.8 billion ($1.61 per share) in 2004.


 

 

“I am proud of the GE team and our accomplishments. We enter 2006 with solid momentum and a strong outlook, including full-year 2006 EPS from continuing operations of $1.94-2.02, an increase of 13-17% over comparable 2005 earnings. For 1Q’06, we expect to achieve EPS of $.38-.40, up 15-21%,” said Immelt. “This sustained double-digit earnings growth and healthy cash generation should produce strong shareowner returns in 2006.”

GE will discuss preliminary fourth-quarter and full-year 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.

Fourth-Quarter 2005 Business Highlights

Infrastructure
§  
Signed GEnx engine order agreements with Korean Air, Japan Airlines and Air Canada for $240 million, $700 million and $900 million, respectively.
§  
Won an order from Emirates Airlines for GE90 engines and an OnPointSM Solutions agreement worth more than $2.5 billion.
§  
Entered into an agreement to provide GE90 engines and OnPointSM Solutions services to Cathay Pacific Airways.
§  
Announced the construction of 1st Mexico desalination plant.
§  
Chosen to supply gas turbines and services for Nigerian government projects totaling 2,000 megawatts.
§  
Awarded a contract for the expansion of a power plant in the State of Qatar, a $500 million venture.
§  
Signed agreement worth more than $450 million with the China Ministry of Railways to provide 300 locomotives.

Consumer Finance
§  
Acquired a majority interest in Keppel Bank, the oldest savings bank in the Philippines, establishing a presence in one of Asia's fastest growing economies. 
§  
Made a strategic investment in Shenzhen Development Bank (SDB), China's first publicly traded bank, and signed a strategic cooperation agreement with SDB to develop consumer finance opportunities in China.
§  
Reached agreement to acquire Pacific Retail Finance, a $350 million consumer finance company in New Zealand, and one of the country's largest direct to consumer finance operations, solidifying GE's position as one of Australia-New Zealand's leading financial services companies.
§  
Agreed to purchase the credit card assets of Belk, Inc., the United States' largest privately owned department store company, adding approximately $500 million in assets to Consumer Finance's U.S. PLCC platform.
§  
Closed acquisition of stake in Garanti bank.

Commercial Finance
§  
Agreed to acquire Arden Realty, a REIT that owns, manages, leases, develops and renovates Southern California office properties jointly with Trizec Properties.
§  
Acquired a portfolio of 112 industrial properties in Mexico for $450 million, one of the largest Latin American real-estate transactions to date.
§  
Completed acquisition of Antares Capital, a leading lender to middle market, private equity sponsors. The acquisition added $1.5 billion in purchased assets and $2 billion assets under management.
§  
Closed financings with ServerCorr LLC for $440 million and NextMedia for $335 million.
 
Industrial
§  
Received the Good Housekeeping "Good Buy" Award and Popular Science "Best of What's New" award in the Home Tech category for outstanding performance and innovative features for the GE ProfileTM dishwasher with SmartDispenseTM technology.
§  
Introduced ecomagination products including advanced LexanTM, GE’s first hard-coated, polycarbonate sheet product for the global public transportation industry.
§  
Entered into an historic partnership with the Chinese Ministry of Agriculture to improve agricultural productivity in the region with a silicones-based additive technology called Silwet* Super Spreader from GE Silicones.
§  
Launched Checkpoint of the Future laboratory at the San Francisco International Airport as part of GE’s “Tunnel of Truth” Imagination Breakthrough. The Checkpoint of the Future collaboration included GE, San Francisco International Airport and TSA.

 

 

NBC Universal
§  
Premiered King Kong, which has generated more than $500 million in worldwide box office receipts.
§  
Began offering NBC Universal television shows on Apple's iTunes service, with episodes of The Office among the most popular downloads as broadcast TV ratings have reached all-time highs in the key demographic of adults 18-49.
§  
Generated highest adults 18-49 rating this season for a TV sitcom with My Name Is Earl.
§  
Delivered Telemundo’s strongest quarterly performance ever in adults 18-49 and adults 18-34 in weekday primetime, becoming the fastest-growing broadcast network in both demographics.
§  
Achieved Sci Fi Channel’s highest full-year ratings, and led all basic-cable entertainment networks in primetime adult 25-54 averages for the fourth quarter with USA Network, which delivered its biggest quarter in more than seven years.

Healthcare
§  
Generated strong demand for orders in computed tomography (CT), ultrasound, and magnetic resonance (MR) orders, with strong demand for Imagination Breakthrough products, such as more than $215 million in orders for the LightSpeed Volume CTTM scanner.
§  
Announced the 500th global installation of the LightSpeed VCT, making it the fastest selling product in the business’s history.
§  
Launched the Discovery VCT, the World’s First Volumetric PET/CT System at the 91st annual meeting of the Radiological Society of North America in Chicago in November.
§  
Announced U.S. FDA clearance of Lunar iDXA(TM), a new bone mineral density system designed to help doctors detect, diagnose and monitor treatment of osteoporosis.
§  
Named by Frost & Sullivan as the “2005 Company of the Year” in the field of medical imaging for its “invaluable contribution to the global healthcare industry.”

* * *
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

2005 results are preliminary and quarterly information is unaudited. 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 "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including 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; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory 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.

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



 

 


GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings

   
Consolidated
 
GE
 
Financial
Services (GECS)
 
Three months ended December 31
 
2005
 
2004
 
V%
         
2005
 
2004
 
V%
         
2005
 
2004
 
V%
 
Revenues
                                                       
Sales of goods and services
 
$
26,176
 
$
25,333
       
$
25,622
 
$
24,572
       
$
647
 
$
830
       
GECS earnings from continuing operations
   
-
   
-
         
2,675
   
2,727
         
-
   
-
       
GECS revenues from services
   
14,106
   
13,929
         
-
   
-
         
14,478
   
14,291
       
Other income
   
423
   
414
         
443
   
416
         
-
   
-
       
Total revenues
   
40,705
   
39,676
   
3
%
 
28,740
   
27,715
   
4
%
 
15,125
   
15,121
   
-
 
                                                         
Costs and expenses
                                                       
Cost of sales, operating and administrative expenses
   
27,520
   
27,083
         
21,669
   
20,813
         
6,134
   
6,526
       
Interest and other financial charges
   
3,988
   
3,339
         
376
   
336
         
3,756
   
3,115
       
Insurance losses and policyholder and 
  annuity benefits
   
1,365
   
1,202
         
-
   
-
         
1,423
   
1,267
       
Provision for losses on financing receivables
   
886
   
1,144
         
-
   
-
         
886
   
1,144
       
Minority interest in net earnings of 
  consolidated affiliates
   
250
   
296
         
203
   
247
         
47
   
49
       
Total costs and expenses
   
34,009
   
33,064
   
3
%
 
22,248
   
21,396
   
4
%
 
12,246
   
12,101
   
1
%
                                                         
Earnings from continuing operations
before income taxes
   
6,696
   
6,612
   
1
%
 
6,492
   
6,319
   
3
%
 
2,879
   
3,020
   
(5
)%
Provision for income taxes
   
(924
)
 
(894
)
       
(720
)
 
(601
)
       
(204
)
 
(293
)
     
Earnings from continuing operations
   
5,772
   
5,718
   
1
%
 
5,772
   
5,718
   
1
%
 
2,675
   
2,727
   
(2
)%
                                                         
(Loss) from discontinued operations 
    (net of taxes)
   
(2,708
)
 
(87
)
       
(2,708
)
 
(87
)
       
(2,708
)
 
(87
)
     
                                                         
Net earnings
 
$
3,064
 
$
5,631
   
(46
)%
$
3,064
 
$
5,631
   
(46
)%
$
(33
)
$
2,640
   
U
 
                                                         
Per-share amounts- earnings from 
    continuing operations
                                                       
Diluted earnings per share
 
$
0.55
 
$
0.54
   
2
%
                                   
Total average equivalent shares
   
10,563
   
10,626
   
(1
)%
                                   
                                                         
Basic earnings per share
 
$
0.55
 
$
0.54
   
2
%
                                   
Total average equivalent shares
   
10,526
   
10,580
   
(1
)%
                                   
                                                         
Per-share amounts - net earnings
                                                       
Diluted earnings per share
 
$
0.29
 
$
0.53
   
(45
)%
                                   
Total average equivalent shares
   
10,563
   
10,626
   
(1
)%
                                   
                                                         
Basic earnings per share
 
$
0.29
 
$
0.53
   
(45
)%
                                   
Total average equivalent shares
   
10,526
   
10,580
   
(1
)%
                                   
                                                         
Dividends declared per share
 
$
0.25
 
$
0.22
   
14
%
                                   

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 2004 consolidated financial statements at www.ge.com/annual04 for further information about consolidation matters.


 

 


GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings

   
Consolidated
 
GE
 
Financial
Services (GECS)
 
Twelve months ended December 31
 
2005
 
2004
 
V%
        
2005
 
2004
 
V%
        
2005
 
2004
 
V%
 
Revenues
                                                       
Sales of goods and services
 
$
92,589
 
$
84,705
       
$
90,430
 
$
82,214
       
$
2,528
 
$
2,840
       
GECS earnings from continuing operations
   
-
   
-
         
9,141
   
7,853
         
-
   
-
       
GECS revenues from services
   
55,430
   
48,712
         
-
   
-
         
56,769
   
50,054
       
Other income
   
1,683
   
1,064
         
1,764
   
1,076
         
-
   
-
       
Total revenues
   
149,702
   
134,481
   
11
%
 
101,335
   
91,143
   
11
%
 
59,297
   
52,894
   
12
%
                                                         
Costs and expenses
                                                       
Cost of sales, operating and administrative expenses
   
102,085
   
94,855
         
78,094
   
71,368
         
25,027
   
24,529
       
Interest and other financial charges
   
15,187
   
11,656
         
1,432
   
979
         
14,308
   
11,121
       
Insurance losses and policyholder 
    and annuity benefits
   
5,474
   
3,583
         
-
   
-
         
5,674
   
3,800
       
Provision for losses on financing receivables
   
3,841
   
3,888
         
-
   
-
         
3,841
   
3,888
       
Minority interest in net earnings of 
    consolidated affiliates
   
986
   
728
         
784
   
538
         
202
   
190
       
Total costs and expenses
   
127,573
   
114,710
   
11
%
 
80,310
   
72,885
   
10
%
 
49,052
   
43,528
   
13
%
                                                         
Earnings from continuing operations
before income taxes
   
22,129
   
19,771
   
12
%
 
21,025
   
18,258
   
15
%
 
10,245
   
9,366
   
9
%
Provision for income taxes
   
(3,854
)
 
(3,486
)
       
(2,750
)
 
(1,973
)
       
(1,104
)
 
(1,513
)
     
Earnings from continuing operations
 
$
18,275
 
$
16,285
   
12
%
$
18,275
 
$
16,285
   
12
%
$
9,141
 
$
7,853
   
16
%
                                                         
Earnings (loss) from discontinued
operations (net of taxes)
   
(1,922
)
 
534
         
(1,922
)
 
534
         
(1,922
)
 
534
       
                                                         
Net earnings
 
$
16,353
 
$
16,819
   
(3
)%
$
16,353
 
$
16,819
   
(3
)%
$
7,219
 
$
8,387
   
(14
)%
                                                         
Per-share amounts - earnings from
continuing operations
                                                       
Diluted earnings per share
 
$
1.72
 
$
1.56
   
10
%
                                   
Total average equivalent shares
   
10,611
   
10,445
   
2
%
                                   
                                                         
Basic earnings per share
 
$
1.73
 
$
1.57
   
10
%
                                   
Total average equivalent shares
   
10,570
   
10,400
   
2
%
                                   
                                                         
Per-share amounts - net earnings
                                                       
Diluted earnings per share
 
$
1.54
 
$
1.61
   
(4
)%
                                   
Total average equivalent shares
   
10,611
   
10,445
   
2
%
                                   
                                                         
Basic earnings per share
 
$
1.55
 
$
1.62
   
(4
)%
                                   
Total average equivalent shares
   
10,570
   
10,400
   
2
%
                                   
                                                         
Dividends declared per share
 
$
0.91
 
$
0.82
   
11
%
                                   

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 2004 consolidated financial statements at www.ge.com/annual04 for further information about consolidation matters.
 

 

 


GENERAL ELECTRIC COMPANY
Summary of Operating Segments (unaudited)

   
Three Months
 
 Twelve Months
 
   
Ended December 31
 
 Ended December 31
 
(Dollars in millions)
 
2005
 
2004
 
V%
         
   2005
 
2004
 
V%
 
                            
Revenues
                                     
Commercial Finance
 
$
5,231
 
$
5,368
   
(3
)
$
20,646
 
$
19,524
   
6
 
Consumer Finance
   
4,886
   
4,304
   
14
   
19,416
   
15,734
   
23
 
Healthcare
   
4,486
   
4,259
   
5
   
15,153
   
13,456
   
13
 
Industrial
   
8,453
   
8,378
   
1
   
32,631
   
30,722
   
6
 
Infrastructure
   
12,080
   
10,877
   
11
   
41,803
   
37,373
   
12
 
NBC Universal
   
4,192
   
4,341
   
(3
)
 
14,689
   
12,886
   
14
 
Corporate items and eliminations
   
1,377
   
2,149
   
(36
)
 
5,364
   
4,786
   
12
 
                                       
Consolidated revenues from continuing 
    operations
 
$
40,705
 
$
39,676
   
3
 
$
149,702
 
$
134,481
   
11
 
                                       
Segment profit (a)
                                     
Commercial Finance
 
$
1,280
 
$
1,081
   
18
 
$
4,290
 
$
3,570
   
20
 
Consumer Finance
   
770
   
637
   
21
   
3,050
   
2,520
   
21
 
Healthcare
   
995
   
860
   
16
   
2,665
   
2,286
   
17
 
Industrial
   
769
   
613
   
25
   
2,559
   
1,833
   
40
 
Infrastructure
   
2,433
   
2,096
   
16
   
7,769
   
6,797
   
14
 
NBC Universal
   
801
   
860
   
(7
)
 
3,092
   
2,558
   
21
 
Total segment profit
   
7,048
   
6,147
   
15
   
23,425
   
19,564
   
20
 
                                       
Corporate items and eliminations
   
(180
)
 
508
   
U
   
(968
)
 
(327
)
 
U
 
GE interest and other financial charges
   
(376
)
 
(336
)
 
(12
)
 
(1,432
)
 
(979
)
 
(46
)
GE provision for income taxes
   
(720
)
 
(601
)
 
(20
)
 
(2,750
)
 
(1,973
)
 
(39
)
                                       
Earnings from continuing operations
 
$
5,772
 
$
5,718
   
1
 
$
18,275
 
$
16,285
   
12
 
                                       
Earnings (loss) from discontinued operations 
    (net of taxes)
 
$
(2,708
)
$
(87
)
 
U
 
$
(1,922
)
$
534
   
U
 
                                       
Consolidated net earnings
 
$
3,064
 
$
5,631
   
(46
)
$
16,353
 
$
16,819
   
(3
)

(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; 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 refer to as "operating profit," for Healthcare, NBC Universal, and the industrial businesses of the Industrial and Infrastructure segments; included in determining segment profit, which we refer to as "net earnings," for Commercial Finance, Consumer Finance, and the financial services businesses of the Industrial segment (Equipment Services) and Infrastructure segment (Aviation Financial Services, Energy Financial Services and Transportation Finance).


 

 
 

GENERAL ELECTRIC COMPANY
Summary of Operating Segments (unaudited)
Additional Information

   
Three Months
 
Twelve Months
 
   
Ended December 31
 
Ended December 31
 
(Dollars in millions)
 
2005
 
2004
 
V%
        
2005
 
2004
 
V%
 
                           
Commercial Finance
                                     
Revenues
 
$
5,231
 
$
5,368
   
(3
)
$
20,646
 
$
19,524
   
6
 
                                       
Segment profit
 
$
1,280
 
$
1,081
   
18
 
$
4,290
 
$
3,570
   
20
 
Revenues
                                     
Capital Solutions
 
$
2,897
 
$
3,126
   
(7
)
$
11,476
 
$
11,503
   
-
 
Real Estate
   
828
   
894
   
(7
)
 
3,492
   
3,084
   
13
 
Segment profit
                                     
Capital Solutions
 
$
460
 
$
455
   
1
 
$
1,515
 
$
1,325
   
14
 
Real Estate
   
389
   
374
   
4
   
1,282
   
1,124
   
14
 
                                       
Industrial
                                     
Revenues
 
$
8,453
 
$
8,378
   
1
 
$
32,631
 
$
30,722
   
6
 
                                       
Segment profit
 
$
769
 
$
613
   
25
 
$
2,559
 
$
1,833
   
40
 
Revenues
                                     
Consumer & Industrial
 
$
3,733
 
$
3,757
   
(1
)
$
14,092
 
$
13,767
   
2
 
Equipment Services
   
1,692
   
1,727
   
(2
)
 
6,627
   
6,571
   
1
 
Plastics
   
1,655
   
1,715
   
(3
)
 
6,606
   
6,066
   
9
 
Segment profit
                                     
Consumer & Industrial
 
$
283
 
$
200
   
42
 
$
871
 
$
716
   
22
 
Equipment Services
   
85
   
55
   
55
   
197
   
82
   
F
 
Plastics
   
222
   
220
   
1
   
867
   
566
   
53
 
                                       
Infrastructure
                                     
Revenues
 
$
12,080
 
$
10,877
   
11
 
$
41,803
 
$
37,373
   
12
 
                                       
Segment profit
 
$
2,433
 
$
2,096
   
16
 
$
7,769
 
$
6,797
   
14
 
Revenues
                                     
Aviation
 
$
3,336
 
$
3,178
   
5
 
$
11,904
 
$
11,094
   
7
 
Aviation Financial Services
   
904
   
875
   
3
   
3,504
   
3,159
   
11
 
Energy
   
5,009
   
4,400
   
14
   
16,525
   
14,586
   
13
 
Energy Financial Services
   
360
   
200
   
80
   
1,349
   
972
   
39
 
Oil & Gas
   
1,288
   
980
   
31
   
3,598
   
3,135
   
15
 
Transportation
   
1,019
   
876
   
16
   
3,577
   
3,007
   
19
 
Segment profit
                                     
Aviation
 
$
752
 
$
709
   
6
 
$
2,573
 
$
2,238
   
15
 
Aviation Financial Services
   
221
   
167
   
32
   
764
   
520
   
47
 
Energy
   
879
   
802
   
10
   
2,665
   
2,543
   
5
 
Energy Financial Services
   
196
   
57
   
F
   
646
   
376
   
72
 
Oil & Gas
   
202
   
123
   
64
   
411
   
331
   
24
 
Transportation
   
180
   
153
   
18
   
524
   
516
   
2
 
 

 

 
 

GENERAL ELECTRIC COMPANY
Condensed Statement of Financial Position

(Dollars in billions)
 
Consolidated
 
 GE
 
 Financial
Services (GECS)
 
Assets
   
12/31/05
   
12/31/04
   
12/31/05
   
12/31/04
   
12/31/05
   
12/31/04
 
Cash & marketable securities
 
$
62.2
 
$
69.1
 
$
2.5
 
$
3.6
 
$
60.0
 
$
65.7
 
Receivables
   
14.9
   
14.2
   
15.1
   
14.5
   
-
   
-
 
Inventories
   
10.5
   
9.8
   
10.3
   
9.6
   
0.2
   
0.2
 
GECS financing receivables - net
   
287.6
   
282.7
   
-
   
-
   
287.6
   
282.7
 
Property, plant & equipment - net
   
67.5
   
63.1
   
16.5
   
16.8
   
51.0
   
46.3
 
Investment in GECS
   
-
   
-
   
50.8
   
54.3
   
-
   
-
 
Goodwill & intangible assets
   
81.7
   
78.5
   
57.8
   
54.7
   
23.9
   
23.7
 
Other assets
   
102.1
   
100.8
   
36.8
   
38.1
   
71.1
   
67.6
 
Assets of discontinued operations
   
46.8
   
132.3
   
-
   
-
   
46.8
   
132.3
 
                                       
Total assets
 
$
673.3
 
$
750.5
 
$
189.8
 
$
191.6
 
$
540.6
 
$
618.5
 
                                       
Liabilities and equity
                                     
Borrowings
 
$
370.4
 
$
365.1
 
$
10.2
 
$
11.0
 
$
362.1
 
$
355.5
 
Insurance reserves
   
45.4
   
48.1
   
-
   
-
   
45.7
   
48.4
 
Other liabilities & minority interest
   
111.8
   
113.6
   
70.2
   
69.8
   
45.4
   
47.2
 
Liabilities of discontinued operations
   
36.3
   
112.9
   
-
   
-
   
36.6
   
113.1
 
Shareowners' equity
   
109.4
   
110.8
   
109.4
   
110.8
   
50.8
   
54.3
 
                                       
Total liabilities and equity
 
$
673.3
 
$
750.5
 
$
189.8
 
$
191.6
 
$
540.6
 
$
618.5
 

December 31, 2005 information is unaudited. Supplemental consolidating data are shown for "GE" and "Financial Services (GECS)." Transactions between GE and GECS have been eliminated from the "consolidated" columns. See note 1 to the 2004 consolidated financial statements at www.ge.com/annual04 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 SEC rules. Specifically, we have referred to organic revenue growth for the twelve months ended December 31, 2005, compared with the twelve months ended December 31, 2004, the increase in cash from operating activities from our industrial businesses (or Industrial CFOA) for the twelve months ended December 31, 2005, compared with the twelve months ended December 31, 2004, earnings growth excluding the previously announced corrrection for SFAS 133 and the effects of dispositions of GE's ownership interest in Gecis (now Genpact) and financial services revenue growth excluding the previously announced correction for SFAS 133 and the effects of dispositions of GE's ownership interest in Gecis (now Genpact). The reasons we use these non-GAAP financial measures and their reconciliation to their most directly comparable GAAP financial measures - continuing revenues, cash from operating activities, earnings from continuing operations and financial services revenues - follow.

   
Twelve months
 
(Dollars in millions)
 
ended December 31
 
   
2005
 
2004
 
V
 %
               
GE consolidated continuing revenues as reported
 
$
149,702
 
$
134,481
   
11
%
Less the effects of:
                   
Acquisitions, dispositions and currency exchange rates
   
10,561
   
4,526
       
The 2004 Olympics broadcasts
   
-
   
927
       
The May 2005 SFAS 133 correction
   
-
   
503
       
GE consolidated revenues excluding the effects of acquisitions,
business dispositions (other than dispositions
                   
of businesses acquired for investment), currency exchange
rates, the 2004 Olympics broadcasts and the
                   
May 2005 SFAS 133 correction (organic revenues)
 
$
139,141
 
$
128,525
   
8
%
                     
                     

   
Twelve months
 
   
ended December 31
 
   
2005
 
2004
 
V
% 
               
Cash from GE’s operating activities as reported
 
$
21,609
 
$
15,204
   
42
%
Less: GECS dividends
   
7,816
   
3,105
       
Cash from GE’s operating activities excluding dividends
from GECS (Industrial CFOA)
 
$
13,793
 
$
12,099
   
14
%
                     
                     
 

 

 

   
Three months
 
   
ended December 31
 
   
2005
 
2004
 
V
 %
               
GE earnings from continuing operations as reported
 
$
5,772
 
$
5,718
   
1
%
Less the effects of:
                   
The May 2005 SFAS 133 correction
   
-
   
253
       
Genpact dispositions
   
94
   
336
       
GE earnings from continuing operations excluding the effects
of the May 2005 SFAS correction and Genpact dispostions
 
$
5,678
 
$
5,129
   
11
%
                     
                     

   
Three months
 
   
ended December 31
 
   
2005
 
2004
 
V
 %
               
Financial services revenues as reported
 
$
15,125
 
$
15,121
   
-
 
Less the effects of:
                   
The May 2005 SFAS 133 correction
   
-
   
451
       
Genpact dispositions
   
94
   
396
       
Financial services revenues excluding the effects of the May 2005
SFAS 133 correction and Genpact dispositions
 
$
15,031
 
$
14,274
   
5
%

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 2005 growth in continuing revenues without the effects of acquisitions, dispositions and currency exchange rates, without the effects of the 2004 Olympics broadcasts and without the effects of the May 2005 SFAS 133 correction. We also believe that investors would find it useful to compare our operating cash flow for the twelve months ended December 31, 2005, to the operating cash flow for the twelve months ended December 31, 2004, without the impact of GECS dividends, which can vary from period-to-period. Similarly, we believe that investors would find it useful to compare our 2005 earnings from continuing operations with our 2004 earnings from continuing operations without the effects of the May 2005 SFAS 133 correction and the effects of the Genpact dispositions. We also believe that investors would find it useful to compare our financial services revenues for the three months ended December 31, 2005 with the revenues for the three months ended December 31, 2004, without the effects of the May 2005 SFAS 133 correction and the effects of the Genpact dispositions.