1st Quarter Results

General Electric Company 13 April 2000 GE Reports record first-quarter 2000 results Revenues up 24% over first-quarter 1999 Earnings per share up 20% to $.78 FAIRFIELD, CONN. - April 13, 2000 - GE achieved record earnings for the first quarter of 2000, with broad-based strength across the company's businesses, Chairman John F. Welch reported today. 'GE's businesses turned in a terrific first quarter,' Mr. Welch said. 'Our products and services are being well received in unusually robust global markets; the businesses outstanding execution more than offset close to two percent price deflation; and the rapid transition to e-Business is improving every aspect of the Company. These factors resulted in record performance this quarter - above our anticipated long-term growth rate.' Specific first quarter highlights include: * Revenues rose to a record $30.0 billion, up 24% ($5.8 billion) over last year's quarter. * First-quarter earnings per share increased 20% to $.78, up from last year's $.65, and earnings increased to $2.592 billion, up 20% ($437 million) over last year's quarter. * GE's first-quarter operating margin was 17.3% of sales, up from last year's 16.3%, and was a record for the quarter. The first-quarter margin growth reflects the increasing benefits from GE's focus on product services, Six Sigma quality and e-Business initiatives. * Cash generated from GE's operating activities was a record $2.6 billion in the first quarter, up 25% from last year's $2.1 billion. As part of the $22 billion share repurchase program, GE purchased $548 million of its stock during the first quarter to reach $16.0 billion - 308 million shares - purchased since December 1994. * GE's industrial businesses had revenue growth of 21% and operating profit increased double-digit over first-quarter 1999 in six of seven operating segments - led by Power Systems, Medical Systems, Plastics and NBC. * GE Capital Services' first-quarter earnings rose to $1,210 million, 17% over last year's $1,032 million. These record results reflect the globalization and diversity of GE Capital's businesses, with a significant increase in its Specialized Financing segment, driven by GE Equity, strong double-digit increases in the Consumer Services and Mid-Market Financing segments, but sharply lower results in the Speciality Insurance segment resulting from repositioning of the ERC investment portfolio. 'In addition to delivering record first-quarter results, GE's businesses made aggressive moves to position themselves for strong future growth,' Mr. Welch said. Highlights of recent activities include: * GE Aircraft Engines continued to win more than 50% of the world's orders for passenger jet engines. Delta Connection and GE agreed to power up to 500 Bombardler Aerospace regional jets with CF34 engines valued at more than $2 billion. Boeing and GE launched two longer-range versions of the 777 twin-engine aircraft, which are exclusively powered by GE90 engines - an agreement worth approximately $20 billion over its life. JAL announced an order for this new GE powered aircraft. The United Arab Emirates selected GE's F110-GE-132 growth engine to power its new fleet of 80 F-16 aircraft - a contract valued at more than $400 million. GE Engine Services announced a joint venture with ANA in Japan for component repair. * CNBC Business Day continued its strong performance, beating CNN in March for the fifth consecutive month. NBC and the World Wrestling Federation announced a partnership to form a new football league, the XFL, with the first game scheduled for February 2001. * GE Capital Services (GECS) continued its growth by adding $20 billion in assets and 1.6 million policy holders through acquisition of the restructured policies of Toho Mutual Life Insurance in Japan, by forming a consumer finance joint venture with Thailand Bank of Ayudhya PLC, and by initiating an alliance with the Commonwealth Bank of Australia. E- Business activity included the launch of GE Financial Network www.gefn.com and a national rollout of www.gesmallbusiness.com - achieving annualized, qualified leads of $4.2 billion in just six weeks. * GE Power Systems continued to win more than 65% of the orders for heavy- duty gas turbines in the U.S. with orders up 35% to $4 billion. Power Systems and the U.S. Department of Energy jointly announced the new 7H System, the world's most efficient and environmentally friendly natural gas-fired power generation technology. Power Systems won 32 new long- term service agreements, bringing the total value of its multi-year contracts to more than $10 billion. Power Systems received orders for more than $120 million of parts through its new www.GEPartsEdge.com web site. * GE Medical Systems (GEMS) announced two new revolutionary products - the GE Senographe 2000D, the world's first fully digital and FDA-approved mammography system; and the Innova 2000, the first digital cardiovascular x-ray system. Orders for these two products totalled more than $50 million in the quarter. GEMS formed an Internet-based partnership, Global Healthcare Exchange, with several leading industry suppliers that offers one-stop shopping for the purchase of health-care products and services. * GE Plastics brought its Cartegena Spain polycarbonate plant to full capacity during the quarter. GE Silicones completed the acquisition of Macklanburg-Duncan, forming a new subsidiary called GE Sealants and Adhesives, greatly enhancing its position in the home center market. * GE Appliances' revenues grew 15% in the quarter led by strong sales from Triton Dishwashers, Spectra Cooking products and other innovative new products, and the growing partnership with Home Depot. GE Transportation won a new service agreement for 1,450 locomotives at CSX Transportation, bringing the total units under long-term service agreements to more than 5,000. Mr. Welch said, 'GE's record results for the first quarter once again demonstrate the ability of our diverse mix of leading global businesses to deliver top-line growth, increased margins and strong cash generation. GE is poised to deliver another record performance in 2000 thanks to our global growth, the expansion of our product services activities, the rapid introduction of new products, our Six Sigma quality initiative and our e- Business initiatives.' GE is traded on the New York Stock Exchange (NYSE: GE). PRESS RELEASE DATA GENERAL ELECTRIC COMPANY All amounts except per-share earnings are in millions of U.S. dollars. THREE MONTHS ENDED MARCH 31, 2000 2000 1999 V% Revenues $29,996 $24,165 24 Earnings $2,592 $2,155 20 Per-Share Earnings - diluted $0.78 $0.65 20 - basic $0.79 $0.66 20 Segment Information 2000 1999 V% Revenues Aircraft Engines $2,441 $2,418 1 Appliances 1,381 1,201 15 NBC 1,393 1,180 18 Industrial Products and Systems 2,785 2,539 10 Plastics 1,861 1,615 15 Power Systems 3,210 1,709 88 Technical Products and Services 1,753 1,495 17 GE Capital Services 15,681 12,383 27 Segment profit 2000 1999 V% Aircraft Engines 558 482 16 Appliances 150 161 (7) NBC 394 334 18 Industrial Products and Systems 514 393 31 Plastics 437 397 10 Power Systems 453 191 F Technical Products and Services 340 268 27 GE Capital Services net earnings 1,210 1,032 17 GENERAL ELECTRIC COMPANY Condensed Statement of Earnings Consolidated Fourth quarter ended March 31 2000 1999 Revenues Sales of goods and services $16,542 $13,363 Earnings of GECS - - GECS revenues from services 13,383 10,699 Other income 71 103 Total revenues 29,996 24,165 Costs and expenses Cost of sales, operating and administrative expenses 19,656 15,606 Interest and other financial charges 2,782 2,263 Insurance losses and policyholder and annuity benefits 2,930 2,619 Provision for losses on financing receivables 521 379 Minority interest in net earnings of consolidated 98 54 affiliates Total costs and expenses 25,987 20,921 Earnings before income taxes 4,009 3,244 Provision for income taxes (1,417) (1,089) Net earnings $2,592 $2,155 GE Fourth quarter ended March 31 2000 1999 Revenues Sales of goods and services $14,370 $11,796 Earnings of GECS 1,210 1,032 GECS revenues from services - - Other income 83 118 Total revenues 15,663 12,946 Costs and expenses Cost of sales, operating and administrative expenses 11,889 9,870 Interest and other financial charges 253 184 Insurance losses and policyholder and annuity benefits - - Provision for losses on financing receivables - - Minority interest in net earnings of consolidated 48 16 affiliates Total costs and expenses 12,190 10,070 Earnings before income taxes 3,473 2,876 Provision for income taxes (881) (721) Net earnings $2,592 $2,155 GECS Fourth quarter ended March 31 2000 1999 Revenues Sales of goods and services $2,233 $1,640 Earnings of GECS - - GECS revenues from services 13,448 10,743 Other income - - Total revenues 15,681 12,383 Costs and expenses Cost of sales, operating and administrative expenses 7,864 5,834 Interest and other financial charges 2,570 2,113 Insurance losses and policyholder and annuity benefits 2,930 2,619 Provision for losses on financing receivables 521 379 Minority interest in net earnings of consolidated 50 38 affiliates Total costs and expenses 13,935 10,983 Earnings before income taxes 1,746 1,400 Provision for income taxes (536) (368) Net earnings $1,210 $1,032 Per share amounts (in dollars) Diluted earnings per share $0.78 $0.65 Basic earnings per share $0.79 $0.66 Dividends declared per share (in dollars) $0.41 $0.35 Dollar 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 consolidated financial statements in the 1998 Annual Report to Share Owners for further information about consolidation matters. GENERAL ELECTRIC COMPANY Condensed Statement of Earnings Consolidated Fourth quarter ended December 31 1999 1998 Revenues Sales of goods and services $64,068 $58,687 Earnings of GECS - - GECS revenues from services 46,764 41,133 Other income 798 649 Total revenues 111,630 100,469 Costs and expenses Cost of sales, operating and administrative expenses 72,969 65,757 Interest and other financial charges 10,013 9,753 Insurance losses and policyholder and annuity benefits 11,028 9,608 Provision for losses on financing receivables 1,678 1,609 Minority interest in net earnings of consolidated 365 265 affiliates Total costs and expenses 96,053 86,992 Earnings before income taxes 15,577 13,477 Provision for income taxes (4,860) (4,181) Net earnings $10,717 $9,296 GE Fourth quarter ended December 31 1999 1998 Revenues Sales of goods and services $55,645 $51,546 Earnings of GECS 4,443 3,796 GECS revenues from services - - Other income 856 684 Total revenues 60,944 56,026 Costs and expenses Cost of sales, operating and administrative expenses 46,031 42,913 Interest and other financial charges 810 883 Insurance losses and policyholder and annuity benefits - - Provision for losses on financing receivables - - Minority interest in net earnings of consolidated 179 117 affiliates Total costs and expenses 47,020 43,913 Earnings before income taxes 13,924 12,113 Provision for income taxes (3,207) (2,817) Net earnings $10,717 $9,296 GECS Fourth quarter ended December 31 1999 1998 Revenues Sales of goods and services $8,740 $7,374 Earnings of GECS - - GECS revenues from services 47,009 41,320 Other income - - Total revenues 55,749 48,694 Costs and expenses Cost of sales, operating and administrative expenses 27,402 23,203 Interest and other financial charges 9,359 8,966 Insurance losses and policyholder and annuity benefits 11,028 9,608 Provision for losses on financing receivables 1,678 1,609 Minority interest in net earnings of consolidated 186 148 affiliates Total costs and expenses 49,653 43,534 Earnings before income taxes 6,096 5,160 Provision for income taxes (1,653) (1,364) Net earnings $4,443 $3,796 Per share amounts (in dollars) Diluted earnings per share $3.22 $2.80 Basic earnings per share $3.27 $2.84 Dividends declared per share (in dollars) $1.46 $1.25 Dollar 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 consolidated financial statements in the 1998 Annual Report to Share Owners for further information about consolidation matters.

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