2nd Quarter & Interim Results

General Electric Company 17 July 2000 GE reports second-quarter results Earnings per share up 21% to $.34 Revenues up 20% over 1999 Operating margin 20.4% - highest ever FAIRFIELD, CONN. - July 13, 2000 - GE's second-quarter earnings of $3.378 billion were the highest for any quarter in the Company's history, Chairman John F. Welch reported today. 'GE's businesses continue to achieve record results and are operating extremely well in their respective global markets,' Mr. Welch said. Specific highlights include: * Revenues for the second quarter increased to a record $32.9 billion, 20% above last year's quarter, reflecting continued growth from globalization and product services. * Second-quarter earnings per share increased 21% to $.34, up from last year's $.28, and earnings increased 20% to $3.378 billion. Both earnings per share and earnings were records for the quarter. * GE's second-quarter operating margin was 20.4% of sales, up from last year's 19.3%, and a record for the quarter. The second-quarter margin growth reflects the increasing benefits from GE's focus on product services, Six Sigma quality and e-Business initiatives. * GE's industrial businesses achieved revenue growth of 17% over second quarter 1999 Operating profit for all seven operating segments increased by double-digits - led by Power Systems, Medical Systems, Aircraft Engines, and NBC. * GE Capital Services' second-quarter earnings rose to $1.277 billion, 17% over last year's $1.092 billion. These record results reflect the globalization and diversity of GE Capital's businesses, with strong double-digit increases in its Specialized Financing, Consumer Services and Mid-Market Financing segments. * Cash generated from GE's operating activities during the first half was a record $5.9 billion, up 25% from last year's $4.7 billion. As part of the $22 billion share repurchase program, GE purchased $523 million of its stock during the second quarter to reach $16.5 billion - 934 million shares - purchased since December 1994. 'In addition to delivering record second-quarter results, GE's businesses made aggressive moves to position themselves for strong future growth,' Mr. Welch said. Highlights of recent activities include: GE Power Systems continued its strong order rate for heavy-duty gas turbines in the U.S., where strong demand for new power generation equipment drove orders up 80% more than last year's quarter to $5.0 billion. Shipments of heavy-duty gas turbines increased 122% in the quarter to 60 units. Demand for fully packaged 25-60MW gas turbines at S&S Energy increased more than 200% during the quarter. Power Systems completed a record 965 installations and preventative maintenance orders during the quarter, helping customers generate more power during peak summer demand periods. It also delivered five first-of- a-kind, 22-megawatt trailer-mounted gas turbines to Commonwealth Edison in Chicago, where the units are helping meet peak demand for electricity. Power Systems added $913 million in new long-term service agreements in the quarter, bringing the total of multi-year contracts to $11 billion. GE Aircraft Engines continued to win the majority of the world's orders for airline jet engines. Significant wins were recorded at Southwest, with an engine order valued at $1 billion, and at American Trans Air, with orders valued at nearly $900 million for engines and a long-term service agreement. Additionally, Taiwan's EVA Airways became the second customer to order the recently launched Boeing 777X passenger jet powered exclusively by the higher- thrust GE90 derivative engine. Italy selected the T700 turboshaft engine to power its entire fleet of NH90 helicopters, an engine order valued at $300 million. GE Medical's products and services continued to be well received in several areas. X-ray orders were up 96% driven by GE's late 1999 acquisition of vascular x-ray imaging provider OEC Medical and new technologies introduced in the 1st quarter - including the Innova 2000 digital cardiac imaging system and the Senographe 2000D full-field digital mammography system. Strong market demand for the GE LightSpeed, the industry's leading multi-slice CT system, drove overall CT orders up 35%. Ultrasound orders grew 40% including 65% growth in the Americas. GE Medical announced a definitive agreement to acquire Lunar Corporation, a leading provider of medical diagnostic systems for the assessment of osteoporosis and metabolic bone diseases and orthopedic applications. GE Plastics announced a new co-polymer resin product for automotive and film applications. The high impact, long-lasting plastic can replace steel and requires no painting. It also announced the pending acquisitions of Commercial Plastics and Cadillac Plastic, a subsidiary of MA Hanna. These transactions, with combined annual revenues of more than $700 million, will enhance GEP Polymerland distribution capabilities. GE Capital continued to position itself for strong growth as its GE Financial Assurance (GEFA) unit announced the signing of a definitive agreement to underwrite and distribute long-term care insurance through a strategic alliance with Citigroup. GEFA also acquired the group life and health operations of Phoenix Home Life Mutual Insurance. GE Capital Aviation Services expanded its global presence and capability with the acquisition of Credit Lyonnais/PK Airfinance. GE Financial Network (www.gefm.com) continued to expand its offerings by announcing a partnership with CompuBank to offer full-service banking, added on-line billing services and launched sales of GE mutual funds through the Charles Schwab Supermarket. NBC continued its primetime success with a tie for first place during the May Sweeps in the important adult 18-49 demographic category. CNBC Business Day continued its strong ratings performance beating CNN for the third consecutive quarter. NBC's Today, Nightly News and Tonight Show with Jay Leno finished the quarter leading their time periods. Building on its success, Today announced plans to extend programming an additional hour in October. NBC concluded long-term cable extension deals with Time Warner Cable and Echostar Communications and now has agreements for Olympic cable distribution covering more than 80% of U.S. cable and satellite households. GE Industrial Systems and Cisco Systems announced the formation of a new company, GE Cisco Industrial Networks. This new company assesses, designs and builds network infrastructures for manufacturing plant floor and industrial environments that enable enterprise-wide communication, a potential $3 billion market by the year 2003. GE Appliances launched PRODIGY, the industry's first full line of electronic washers, and the NAUTILUS dishwasher, featuring a new pre-heated water option and quieter operation. In cooking products, a 3rd shift was added to meet extraordinary demand for the successful new SPECTRA electric range. In addition, GE Gas Ranges recently received the number 1, number 2 and number 3 ratings by a leading consumer magazine. As a result of continuing focus on the customer and Six Sigma quality, GEA was recently recognized as Supplier of the Year by several customers, including Wal-Mart, Sears, The Home Depot, and Centex Homes. Mr. Welch concluded: 'The record results for the second quarter once again demonstrate the ability of GE's diverse mix of leading global businesses to deliver top-line growth, increased margins and strong cash generation. The combination of global growth, expansion of our product services activities, rapid introduction of new products and our Six Sigma quality and e-Business initiatives position GE to deliver another year of record performance in 2000.' Press Release Data GENERAL ELECTRIC COMPANY All amounts except per-share earnings are in millions of U.S. dollars. SECOND QUARTER 2000 1999 V% Revenues $32,862 $27,410 20 Earnings $3,378 $2,820 20 Per-Share Earnings - diluted $0.34 $0.28 21 - basic $0.34 $0.29 17 Segment Information 2000 1999 V% Revenues Aircraft Engines $2,749 $2,650 4 Appliances 1,575 1,476 7 NBC 1,956 1,782 10 Industrial Products and Systems 3,037 2,885 5 Plastics 2,014 1,741 16 Power Systems 3,738 2,334 60 Technical Products and Services 1,901 1,625 17 GE Capital Services 16,470 13,378 23 Segment profit 2000 1999 V% Aircraft Engines 809 509 20 Appliances 194 177 10 NBC 635 544 17 Industrial Products and Systems 603 540 12 Plastics 519 468 11 Power Systems 752 516 46 Technical Products and Services 413 328 26 GE Capital Services net earnings 1,277 1,092 17 SIX MONTHS ENDED JUNE 30, 2000 2000 1999 V% Revenues $62,858 $51,575 22 Earnings $5,970 $4,975 20 Per-Share Earnings - diluted $0.59 $0.50 18 - basic $0.60 $0.51 18 Segment Information 2000 1999 V% Revenues Aircraft Engines $5,190 $5,068 2 Appliances 2,956 2,677 10 NBC 3,349 2,962 13 Industrial Products and Systems 5,822 5,424 7 Plastics 3,875 3,356 15 Power Systems 6,948 4,043 72 Technical Products and Services 3,654 3,120 17 GE Capital Services 32,151 25,761 25 Segment profit 2000 1999 V% Aircraft Engines 1,167 991 18 Appliances 344 338 2 NBC 1,029 878 17 Industrial Products and Systems 1,117 933 20 Plastics 956 865 11 Power Systems 1,205 707 70 Technical Products and Services 753 596 26 GE Capital Services net earnings 2,487 2,124 17 GENERAL ELECTRIC COMPANY Condensed Statement of Earnings Consolidated Second quarter ended June 30 2000 1999 Revenues Sales of goods and services $18,746 $15,857 Earnings of GECS - - GECS revenues from services 13,981 11,348 Other income 135 205 Total revenues 32,862 27,410 Costs and expenses Cost of sales, operating and administrative expenses 20,579 17,651 Interest and other financial charges 3,014 2,404 Insurance losses and policyholder and annuity benefits 3,852 2,705 Provision for losses on financing receivables 421 442 Minority interest in net earnings of consolidated 97 108 affiliates Total costs and expenses 27,963 23,310 Earnings before income taxes 4,899 4,100 Provision for income taxes (1,521) (1,280) Net earnings $3,378 $2,820 GE Second quarter ended June 30 2000 1999 Revenues Sales of goods and services $16,414 $13,966 Earnings of GECS 1,277 1,092 GECS revenues from services - - Other income 155 225 Total revenues 17,846 15,283 Costs and expenses Cost of sales, operating and administrative expenses 13,064 11,269 Interest and other financial charges 259 220 Insurance losses and policyholder and annuity benefits - - Provision for losses on financing receivables - - Minority interest in net earnings of consolidated 44 63 affiliates Total costs and expenses 13,367 11,552 Earnings before income taxes 4,479 3,731 Provision for income taxes (1,101) (911) Net earnings $3,378 $2,820 GECS Second quarter ended June 30 2000 1999 Revenues Sales of goods and services $2,405 $1,961 Earnings of GECS - - GECS revenues from services 14,065 11,417 Other income - - Total revenues 16,470 13,378 Costs and expenses Cost of sales, operating and administrative expenses 7,636 6,488 Interest and other financial charges 2,811 2,237 Insurance losses and policyholder and annuity benefits 3,852 2,705 Provision for losses on financing receivables 421 442 Minority interest in net earnings of consolidated 53 45 affiliates Total costs and expenses 14,773 11,917 Earnings before income taxes 1,697 1,461 Provision for income taxes (420) (369) Net earnings $1,277 $1,092 Per share amounts (in dollars) Diluted earnings per share $0.34 $0.28 Basic earnings per share $0.34 $0.29 Dividends declared per share (in dollars) $0.13 2/3 $0.11 2/3 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 1999 Annual Report to Share Owners for further information about consolidation matters. GENERAL ELECTRIC COMPANY Condensed Statement of Earnings Consolidated Six months ended June 20 2000 1999 Revenues Sales of goods and services $35,288 $29,220 Earnings of GECS - - GECS revenues from services 27,364 22,047 Other income 206 308 Total revenues 62,858 51,575 Costs and expenses Cost of sales, operating and administrative expenses 40,235 33,257 Interest and other financial charges 5,796 4,667 Insurance losses and policyholder and annuity benefits 6,782 5,324 Provision for losses on financing receivables 942 821 Minority interest in net earnings of consolidated 195 162 affiliates Total costs and expenses 53,950 44,231 Earnings before income taxes 8,908 7,344 Provision for income taxes (2,938) (2,369) Net earnings $5,970 $4,975 GE Six months ended June 20 2000 1999 Revenues Sales of goods and services $30,784 $25,762 Earnings of GECS 2,487 2,124 GECS revenues from services - - Other income 238 343 Total revenues 33,509 28,229 Costs and expenses Cost of sales, operating and administrative expenses 24,953 21,139 Interest and other financial charges 512 404 Insurance losses and policyholder and annuity benefits - - Provision for losses on financing receivables - - Minority interest in net earnings of consolidated 92 79 affiliates Total costs and expenses 25,557 21,622 Earnings before income taxes 7,952 6,607 Provision for income taxes (1,982) (1,632) Net earnings $5,970 $4,975 GECS Six months ended June 20 2000 1999 Revenues Sales of goods and services $4,638 $3,601 Earnings of GECS - - GECS revenues from services 27,513 22,160 Other income - - 32,151 25,761 Total revenues Costs and expenses Cost of sales, operating and administrative expenses 15,500 12,322 Interest and other financial charges 5,381 4,350 Insurance losses and policyholder and annuity benefits 6,782 5,324 Provision for losses on financing receivables 942 821 Minority interest in net earnings of consolidated 103 83 affiliates Total costs and expenses 28,708 22,900 Earnings before income taxes 3,443 2,861 Provision for income taxes (956) (737) Net earnings $2,487 $2,124 Per share amounts (in dollars) Diluted earnings per share $0.59 $0.50 Basic earnings per share $0.60 $0.51 Dividends declared per share (in dollars) $0.27 1/3 $0.23 1/3 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 1999 Annual Report to Share Owners for further information about consolidation matters.

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