FAIRFIELD, Conn.--(BUSINESS WIRE)--April 8, 2004--GE's first quarter 2004 earnings were $3.2 billion, or $.32 per share, up 1% over first quarter 2003 earnings before the effect of a required accounting change, the Company announced today. Excluding non-cash earnings from GE's U.S. pension plans and Energy, which entered the final year of lower earnings from declining gas turbine sales, earnings increased 16%.
"Once again GE delivered excellent operating performance, with cash from operating activities growing 67% and nine of our 11 businesses contributing double-digit improvements to earnings," said GE Chairman and CEO Jeff Immelt. "In addition, total industrial orders for the quarter grew 20%, building on our fourth-quarter momentum. With first quarter results coming in at the top of our range, and second quarter operations on track to do the same, we feel very good about 2004.
"We continued to make great progress on our growth initiatives in the quarter," Immelt said.
"Orders for services grew 8%; our growth platforms increased revenues 29%; we continued to grow globally; and our investments in technology continued to pay off in important customer wins, including Boeing's selection this week of our GENX engine to power its new 7E7 Dreamliner aircraft. I'm very proud of the entire Aircraft Engines team.
"During the quarter, we also made excellent progress on the transformation we started last year to expand our growth rate and increase returns," Immelt said. "This morning we completed our acquisition of Amersham, which will be combined with our medical business to form the industry's most comprehensive healthcare diagnostics company. Next month we expect to complete NBC's merger with Vivendi Universal Entertainment and Genworth Financial's initial public offering. These actions, and the continuing strength of the balance of our businesses, position us for double-digit earnings growth in 2005."
GE will discuss results on a conference call and Webcast at 8:30 a.m. EDT today. Call information and related charts are available at www.ge.com/investor.
First Quarter 2004 Financial Highlights
-- Earnings were $3.240 billion in first quarter 2004, up 1% from last year's $3.214 billion before the effect of a required accounting change in 2003. Earnings per share were $.32 in both years. Nine of GE's 11 businesses - Advanced Materials, Commercial Finance, Consumer Finance, Consumer & Industrial, Equipment & Other Services, Healthcare, Infrastructure, NBC and Transportation - contributed double-digit improvements to earnings.
-- Revenues were $33.4 billion, 10% higher than last year's $30.5 billion. Industrial sales increased 6% to $16.7 billion. Excluding Energy, industrial sales were up 12%. Financial Services revenues of $16.9 billion were up 14% over last year.
-- Cash generated from GE's operating activities was $2.6 billion, up 67% from last year's $1.6 billion. While the improvement reflects some unusual items - like a $200 million special dividend from GE Capital Services - the company's ongoing focus on working capital and cash management lead GE to expect 10-15% growth in cash from operating activities for the full year.
-- Net earnings were $3.240 billion in first quarter 2004, up 8% from $2.999 billion in first quarter 2003, when the company recorded a non-cash transition charge of $215 million ($.02 per share) for the cumulative effect of a required change in accounting for asset retirement obligations.
"The GE team is doing a great job of executing this year," Immelt said. "We are delivering excellent performance to customers and shareowners, and we are building new high-growth platforms and driving growth initiatives. We have the businesses and teams in place to achieve long-term growth with high returns."
First Quarter 2004 Business Highlights
Healthcare
-- Increased total orders 15% over first quarter 2003 to $2.4
billion, highlighted by growth of 22% in Ultrasound orders to
nearly $200 million and 48% growth in PET (positron emission
tomography) orders, to more than $100 million.
-- Increased China orders 15% over last year to $120 million,
with strength in all modalities.
-- Grew global services orders 11% over last year to $1.2
billion, led by strong increases in core services in Europe
and Asia.
-- Ended the quarter having shipped in just eight months since
product launch more than 100 Discovery ST(TM) systems, which
use PET technology to image the body's metabolic activity
while CT (computed tomography) captures anatomical
information.
-- Received clearance from the U.S. Food and Drug Administration
for the GE Lightspeed(R) VCT system, which uses breakthrough
64-slice detector technology that enables high-resolution
imaging of organs in one second and the whole body in less
than 10 seconds.
Transportation
-- Received aircraft engine, locomotive and services orders in
the quarter totaling $3.5 billion, up 16% over first quarter
2003, including $2.9 billion in engine and services orders, up
14%, and $620 million in locomotive and services orders, up
28%.
-- Completed U.S. and European certification of the
GE90-115B-powered Boeing 777-300ER, with delivery of the first
aircraft to Air France scheduled for April 2004.
-- Shipped 11 GE Evolution Series(TM) pilot locomotives. To date,
the cleanest locomotives on the rails have logged more than
one million miles and the equivalent of 12 years of testing.
-- Powered the first test flight of the Embraer 190 regional jet
with the CF34-10 regional jet engine. Certification and the
first deliveries, to JetBlue, are scheduled for 2005.
-- Formed an alliance with Honda to manufacture, service and sell
engines for a new class of small aircraft known as
"microjets."
Energy
-- Signed new contractual services agreements totaling more than
$650 million, increasing the number of gas turbines and sites
covered by 11% and 12%, respectively, over first quarter 2003.
-- Received a commitment from Taiwan Power Company for 26
1.5-megawatt units for Taiwan's first large-scale wind
project, and orders for 100 1.5-megawatt wind turbines,
including 39 for Cefn Croes in the United Kingdom; 19 for
Japan Wind Development Company, Ltd.; 10 for Airtricity for
installation in Gartnanean, Ireland; and 30 for two projects
in France that together will increase France's capacity for
wind electricity by nearly 20%.
-- Shipped 36 heavy-duty gas turbines from Greenville, S.C. and
Belfort, France, compared with 54 in first quarter 2003.
-- Received a $200 million contract from Qatar Petroleum and
ExxonMobil to supply turbocompressors for the Qatargas II LNG
Expansion Project, the world's largest liquefied natural gas
project.
-- Agreed to form a joint venture with Harbin Power Equipment
Company to provide repair and field services for heavy-duty GE
gas turbines in China. Power generation equipment orders from
China in the first quarter included 10 gas turbines and six
steam turbines.
-- Announced agreement to acquire the assets of Astropower Inc.,
a leading manufacturer of solar electric power products,
adding solar power to its portfolio of renewable energy
options.
Commercial Finance
-- Acquired 97% of the outstanding shares of Sophia, the
fourth-largest listed real estate company in France, with $4.6
billion in assets including $3.8 billion in owned real estate
(190 properties, primarily in Paris) and $800 million in
lending assets (716 contracts).
-- Completed the acquisition of most of Transamerica's commercial
finance divisions, adding approximately $8.5 billion in
managed assets; expanding finance offerings to manufacturers
and dealers of industrial, consumer and recreational products;
and enhancing leasing and commercial loan financing in
equipment, real estate and international structured finance.
-- Ended the quarter with no Aviation Services aircraft on the
ground, and delivered the first of Embraer's new 170 model
regional jets to lease customers LOT Polish Airlines and US
Airways, as well as two new Boeing 737-800 aircraft to new
customer Shanghai Airlines.
-- Acquired HPSC, the nation's leading provider of financing for
physician and dental practices, adding $700 million in assets
and entering an $18 billion financing segment.
-- Provided $130 million in financing to CNL Retirement
Properties, Inc., a leading real estate investment trust in
the senior housing industry.
Consumer Finance
-- Completed the acquisitions of RSGB in France and Orient
Consumer Credit in Singapore, adding more than $800 million of
assets and expanding Consumer Finance's presence in growing
markets for secured debt consolidation and the financing of
used autos.
-- Acquired a 50% interest in IFG Group, a leading Irish
specialty finance company, enabling the creation of a debt
consolidation business in that market.
-- Acquired Cashworks, Inc., a leading provider of technology
solutions for the non-bank financial services industry that
adds a strong foundation in the Americas for fee-based
Consumer Finance business.
-- Launched a private-label credit card and pilot dual card
product with ASDA, a 270-store Wal-Mart subsidiary and one of
the U.K.'s fastest-growing chains.
NBC
-- Won the February prime-time "sweeps" period in virtually all
key demographic groups, including adults 18-49, in which NBC
held a 14% lead over the nearest competitor, as well as women
18-49 and women 25-54.
-- Featured the top two prime-time comedies among adults 18-49
(Friends and Will & Grace), the top first-year program (The
Apprentice), the top first-year drama (Las Vegas) and five of
the top eight dramas (ER, Las Vegas, Law & Order, Law & Order:
Special Victims Unit and Crossing Jordan).
-- Continued the longstanding No. 1 rankings of The Tonight Show
with Jay Leno and Late Night with Conan O'Brien; signed Jay
Leno through the end of 2009.
-- More than doubled Bravo's first-quarter prime-time viewers
among adults 18-49 and adults 25-54 over first quarter of last
year.
-- Increased Telemundo's weekday prime-time ratings 59% over
first quarter 2003 among adults 18-49 and registered increases
in this demographic across all dayparts.
-- Drove increases over fourth quarter 2003 of 65% and 16%,
respectively, in CNBC's prime-time weekday viewing and MSNBC's
prime-time ratings among adults 25-54.
Infrastructure
-- Agreed to acquire InVision Technologies for approximately $900
million, which will significantly enhance GE's capabilities in
explosive detection and security technologies serving
airports, mass transportation systems, and other high-security
installations.
-- Received nearly $25 million in Security and Sensing orders
from military, law enforcement and aviation customers to be
used in anti-terrorist, homeland and force protection
applications.
-- Opened Water & Process Technologies' first manufacturing plant
in China. The Wuxi facility blends water treatment chemicals
for customers in the rapidly growing Asian market.
-- Announced Water & Process Technologies equipment, treatment
and services orders exceeding $30 million in annual revenues
from key customers in the petrochemical, steel,
high-technology manufacturing, consumer beverage and other
industries.
Advanced Materials
-- Continued to expand into new high-technology segments,
including the use of GE Lexan(R) Illuminex(TM) diffuser film
technology in liquid crystal displays for PDAs, flat-panel
TVs, cell phones and cameras, and the use of GE Ultem(R) film
technologies to provide high-temperature solutions for
flexible printed circuits, electrical and electronic tapes and
labels, insulation, shielding and sensors.
-- Introduced new Lexan lipid- and gamma-resistant polycarbonate
resins for medical devices in the blood, renal care and fluid
delivery segments.
-- Began shipments of Geloy XTW(R) resin for marine applications,
replacing traditional fiberglass gel coatings for hulls.
Consumer & Industrial
-- Increased unit sales of high-end Profile(R) and Monogram(R)
appliances 20% and 11%, respectively, over first quarter 2003.
-- Launched a new and improved line of ENERGY STAR-rated built-in
side-by-side Monogram refrigerators; during the quarter,
Consumer & Industrial was recognized as an ENERGY STAR Partner
of the Year by the Department of Energy and the Environmental
Protection Administration.
GE (NYSE: GE) is a diversified technology and services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.
Caution Concerning Forward-Looking Statements
This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of GE. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory and other factors. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise. This presentation includes certain non-GAAP financial measures as defined under SEC rules. As required by SEC rules, we have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in this press release.
[See attachment for detailed financial numbers.]
CONTACT:
General Electric, Fairfield
David Frail, 203/373-3387
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