2001 was a challenging but successful year for our Company. We were tested by one of the most brutal global economies in decades, as well as by the impact of the tragedy of September 11. But the GE business model works. Our people responded remarkably to these challenges, allowing GE's earnings to outperform the S&P 500 by the widest margin in 25 years. We have much to be proud of.

Earnings grew 11% to $14.1 billion – a record. Earnings per share also increased 11% while average earnings for the S&P 500 declined by more than 20%.

Revenues were $125.9 billion, down 3% on a reported basis over 2000 but up 4% on a comparable basis. Industrial revenues grew 6%.

Cash from operating activities grew to $17.2 billion, up 12% from 2000. Excluding progress collections, cash was $13.8 billion, up 13% from 2000. Operating margin expanded to 19.6% from the previous year's comparable 18.9%; return on average total capital remained at 27%.

Our stock price was down 16%, slightly more than the S&P 500. Clearly, this was a disappointment. However, investors who have held our stock for five years, including 2001, have received an average 21% total annual return on investment. Those who recognize that GE is managed for the long term, and have held the stock for a decade, have received an average 23% total annual return.

 We increased our dividend 13% in December, our 26th consecutive annual increase and 10th consecutive double – digit increase. We saw the lower stock price as a clear buying opportunity and repurchased $3.1 billion of our own stock. Overall, $9.5 billion was returned to our share owners.

 We announced acquisitions in 2001 totaling nearly $23 billion. GE Capital had a record year, building even stronger positions in mid – market financing and real estate. We added new platforms in Power, Medical and Industrial Systems. The Telemundo acquisition by NBC will extend our reach in the fast – growing Spanish – language segment in the United States.

 We have great leaders in this Company, and they made for a seamless transition to the new management team. We had nearly 175 promotions among the top 575 leaders, providing evidence of the endless opportunities that make the best people join – and stay with – GE. More than 40% of the new officer appointments were women, minorities and from outside the U.S., as the face of GE continues to change.

The Company responded immediately to the September 11 tragedy. The GE family gave $25 million of aid in cash and services. The GE Fund contributed $10 million to the Twin Towers Fund, and 20,000 GE employees gave $2.5 million to the Red Cross, which was matched by the GE Fund.

Our Power Systems business moved 80 mobile generators to Lower Manhattan within 48 hours of the attack. Our Medical Systems business rapidly moved mobile CT and magnetic resonance scanners to hospitals closest to the tragedy. GE employees, many of whom are also volunteer firefighters, worked tirelessly at the World Trade Center site.  We are proud of our team and their enormous effort.

GE continued to be the world's most honored company. We were Fortune's "Most Admired Company" for the fifth year in a row, and we were named "The World's Most Respected Company" by the Financial Times for the fourth time.