Expects Strong Orders Growth of 15% for Fourth Quarter 2007
Forecasts 10% - or Better -- EPS Growth for 2008
Raises Dividend 11% for 32nd Consecutive Annual Increase
Authorizes New $15 Billion Share Repurchase Program Over 3 Years
Fairfield, Conn., Dec. 11, 2007 - GE (NYSE: GE) reported today that it expects to have a strong finish to the year with earnings per share (EPS) growth of 14-18% to $.67-. 69 per share and strong orders growth of 15% for the fourth quarter 2007. For the year, GE expects to deliver earnings growth of 18-19% to $2.19-2.21 and its twelfth straight quarter of 2-3 times GDP organic revenue growth. For 2007, GE will return a total of $26 billion to its investors through its dividend and stock repurchase. GE Chairman and CEO Jeff Immelt provided this operational update at the company's annual outlook meeting today in New York.
"In 2008, we are planning for the environment we see today. We bring to this environment an unmatched set of leadership businesses with global reach and highly visible backlogs," Immelt said. "In addition, we have a strong balance sheet and a AAA-rating -- a massive competitive advantage in this environment -- with no exposure to collateralized debt obligations (CDO) or structured investment vehicles (SIV).
"Our focus in 2008 will continue to be on generating high-quality earnings growth of at least 10%," Immelt said. "This performance will reflect organic revenue growth of 2-3x GDP, expanding margins and returns, a higher tax rate, accelerating global growth, and industrial earnings growing faster than financial services. This commitment reflects a slowing U.S. economy. We want to give our investors safe and reliable earnings growth as the economy evolves."
Also today, the GE Board of Directors raised the Company's quarterly dividend 11% from $0.28 per outstanding share to $0.31 per outstanding share of its common stock, for a full-year total dividend of $1.24, up from the current $1.12 per share. The dividend increase marks the 32nd consecutive year in which GE has increased its dividend and the fourth straight annual, double-digit increase. GE has paid a dividend every year since 1899. The dividend is payable January 25, 2008, to shareowners of record at the close of business on December 24, 2007. The ex-dividend date is December 20, 2007. In addition, the Board authorized a new share repurchase plan of $15 billion over the next three years, which could be increased over the course of the program depending on the Company's divestiture opportunities or lower spending on acquisitions.
"Our portfolio strategy, initiatives, and financial discipline have positioned GE to win in this environment," Immelt said. "Because of our strong, globally-positioned businesses, led by Infrastructure, we will grow revenue 10%+ even in a slowing U.S. economy. We are delivering a full pipeline of new products, while driving productivity, pricing, and efficiency throughout the company. We will continue to be disciplined in our capital allocation. Our growth plan does not assume any major industrial mergers and acquisitions activity. However, with our cash flow and balance sheet strength, we can capitalize on investor friendly opportunities in this economy.
"As we look to the future, no company is better positioned than GE to win. We are leaders in the big trends of infrastructure, emerging markets, environmental technology, demographics, digital connections, and global origination. We will invest and deliver," Immelt said.
Information on today's annual outlook meeting and the Webcast are available at www.ge.com/investor.
All EPS information in this release is on a continuing operations basis.
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GE (NYSE: GE) is a diversified technology, media and financial services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, and entertainment, 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 www.ge.com.
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, investigative 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.
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