3rd Quarter & 9 Mths Results

General Electric Company 11 October 2000 GE Reports Record Third-Quarter 2000 Results Earnings Per Share Up 19% to $.32 Revenues Up 18% Over 1999 Fairfield, Conn. - October 11, 2000 - GE achieved record results for the third quarter of 2000 with broad-based strength across the company's businesses, Chairman John F. Welch reported today. Specific highlights include: * Revenues for the third quarter increased to a record $32.0 billion, 18% above last year's quarter, reflecting continued growth from globalization and product services. * Third-quarter earnings per share increased 19% to $.32, up from last year's $.27, and earnings increased 20% to $3.180 billion. Both earnings per share and earnings were records for the quarter. * Excluding the effects of a third-quarter retirement benefit provision associated with the new labor agreement, GE's third-quarter operating margin was 17.6% of sales, up from last year's 16.7%, reflecting increasing benefits from GE's focus on product services, Six Sigma quality and e-Business initiatives. GE's reported third-quarter operating margin was 16.6%. * GE's industrial businesses achieved revenue growth of 18% above third quarter 1999. Operating profit for six of seven operating segments increased by double digits - led by Power Systems, Medical Systems, Plastics and Aircraft Engines. * GE Capital Services' third-quarter earnings rose to $1.478 billion, 17% above last year's $1.262 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, Equipment Management and Mid-Market Financing segments. * Cash generated from GE's operating activities during the first nine months was a record $9.9 billion, up 34% from last year's $7.4 billion. As part of the $22 billion share repurchase program, GE purchased $495 million of its stock during the third quarter to reach $17.0 billion - 943 million shares - purchased since December 1994. 'In addition to delivering record third-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 (GEPS) continued to experience strong demand for power generation equipment and services. Orders for the quarter were up 90% to $7.3 billion. Power Systems continued to win the majority of the orders for heavy- duty gas turbines in the United States with orders more than double the third quarter 1999 level. Demand for fully packaged 25 to 60 megawatt gas turbines at S&S Energy Products continued to build with orders up more than three-fold from the 1999 quarter. Power Systems added $1.2 billion in new long-term service agreements in the quarter bringing the total commitments for these long-term contracts to $12.2 billion. GEPS continued redefining the large portable power market with the first five TM2500 portable power plants launched this summer at Commonwealth Edison being shipped to Cork, Ireland, where they will supply up to 110 megawatts of temporary winter peaking capacity. GEPS acquired Smallworldwide, a UK-based developer of software solutions for spatial mapping of networks. GE Aircraft Engines continued to win the majority of the world's orders for airline jet engines, including more than $2 billion in commercial engine wins at the Farnborough Air Show and significant orders for the longer-range Boeing 777 aircraft from ILFC, ANA and Air France. Lockheed Martin selected GE engines for the U.S. Air Force C-5 modernization program with a potential value in excess of $2.5 billion. GE Engine Services reported nearly $1 billion in new multi-year service contracts with several airlines including Qantas, Ansett/Air New Zealand, and Japan Air Lines. GE Capital took broad-based actions to drive future growth. GE Americom launched its GE-7 satellite, reinforcing its position as the number one provider of satellite services in North America. Penske truck leasing and rental business acquired Rentway, Ltd., expanding Penske's North American service network and positioning Penske as the leading Canadian truck leasing and rental business. GE Capital Aviation Services and GE Equity announced a strategic investment in Carmen Systems, a worldwide leader in developing solutions for airlines to optimize the use of aircraft and crews. GE Capital formed a joint venture, Japan Equity Capital Co. Ltd., with Sumitomo Corp. and Daiwa Securities to manage a private equity fund in Japan. GE Medical Systems (GEMS) completed three acquisitions to enhance its technical position and growth. Magnex will expand GEMS performance in the fast-growth high-field MR market; MicroMedical increases GE's presence in cardiovascular information systems; and Access Medical is the industry's largest multi-vendor used equipment business. GEMS e-Business momentum continues to build with online orders surpassing $1 billion year-to-date, and more than 650 diagnostic units with Internet connectivity. GE Transportation Systems (GETS) acquired Harmon Industries, Incorporated. Harmon's wide range of railroad and transit signaling, wayside and control products and systems, complement GETS service offerings. GETS was awarded a Canadian Pacific Railway contract to service more than 300 General Motors' EMD locomotives. GETS received locomotive orders for 60 U.S. units from Amtrak and 10 units from Adtranz in Europe. NBC garnered the most Emmy nominations and awards for the sixth consecutive year. The West Wing and Will & Grace won the best drama and comedy series, respectively. The West Wing broke the all-time record for Emmy wins by any series in a single season. NBC's Today Show in Sydney had two of its top ten most watched weeks in the 49-year history of the show. NBC's Today Show, Nightly News and Tonight Show with Jay Leno continue to win their time periods finishing the quarter number 1. CNBC Business Day continued its strong ratings performance beating CNN for the fourth consecutive quarter. NBC's Olympic success was broad-based with coverage on NBC reaching 185 million Americans during its 17 days of coverage and boosted ratings for the Today Show 25%, CNBC 88% and MSNBC 181%. NBC Olympics.com had 43 million page views averaging 23 minutes per visitor. NBC successfully negotiated long-term cable extension deals with the vast majority of U.S. cable system operators and now has agreements for CNBC and MSNBC Olympic cable distribution through 2008. GE Plastics completed the acquisition of Cadillac Plastics, a global distributor of plastic shapes including sheet, film, tube, rod and fabricated parts. This addition expands its product offering and worldwide distribution network. Plastics also announced the opening of two new compounding plants in Shanghai, China, and Bangkok, Thailand, to serve its growing Asian customer base in the business equipment, automotive, and optical media markets. GE Appliances registered significant market share gains from product and distribution moves. New product introductions in the quarter were led by the successful launch of Wizard, the electronically controlled clothes care system, the Advantium built-in wall oven, and the Aquarius front-loading automatic washing machine. In August, Wal-Mart, the world's largest retailer, announced that it would begin selling a full line of GE-branded major appliances. GE Industrial Systems continued to expand its portfolio of product offerings through the acquisitions of the German company Graesslin, specializing in time switches, and a majority interest in Instrument Transformers Inc., a leading manufacturer of indoor-type instrument transformers for the industrial market. Mr. Welch concluded: 'The record results for the third 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, our Six Sigma quality initiative and our e-Business initiatives position GE to deliver another year of record performance in 2000. We are comfortable with the First Call analysts' consensus estimate of $1.27 per share for 2000.' Caution Concerning Forward-Looking Statements This document includes certain 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those expectations due to changes in global economic, business, competitive market and regulatory factors. More detailed information about those factors is contained in GE's filings with the Securities and Exchange Commission. GE (NYSE: GE) is a diversified services, technology and manufacturing company with a commitment to achieving customer success and worldwide leadership in each of its businesses. For more information, visit the company's Web site at http://www.ge.com. PRESS RELEASE DATA GENERAL ELECTRIC COMPANY All amounts except per-share earnings are in millions of U.S. dollars. THIRD QUARTER 2000 1999 V% Revenues $32,014 $27,200 18 Earnings $3,180 $2,653 20 Per-Share Earnings - diluted $0.32 $0.27 19 - basic $0.32 $0.27 19 Segment Information 2000 1999 V% Revenues Aircraft Engines $2,580 $2,659 (3) Appliances 1,495 1,449 3 NBC 1,895 1,076 76 Industrial Products and Systems 2,777 2,802 (1) Plastics 1,970 1,690 17 Power Systems 3,521 2,464 43 Technical Products and Services 1,902 1,601 19 GE Capital Services 16,444 14,002 17 Segment profit 2000 1999 V% Aircraft Engines 614 536 15 Appliances 159 137 16 NBC 292 265 10 Industrial Products and Systems 497 491 1 Plastics 487 390 25 Power Systems 670 397 69 Technical Products and Services 439 316 39 GE Capital Services net earnings 1,478 1,262 17 NINE MONTHS ENDED SEPTEMBER 30, 2000 2000 1999 V% Revenues $94,872 $78,775 20 Earnings $9,150 $7,628 20 Per-Share Earnings - diluted $0.91 $0.76 20 - basic $0.93 $0.78 19 Segment Information 2000 1999 V% Revenues Aircraft Engines $7,770 $7,727 1 Appliances 4,451 4,126 8 NBC 5,244 4,038 30 Industrial Products and Systems 8,599 8,226 5 Plastics 5,845 5,046 16 Power Systems 10,469 6,507 81 Technical Products and Services 5,556 4,721 18 GE Capital Services 48,595 39,763 22 Segment profit 2000 1999 V% Aircraft Engines 1,781 1,527 17 Appliances 503 475 6 NBC 1,321 1,143 16 Industrial Products and Systems 1,614 1,424 13 Plastics 1,443 1,255 15 Power Systems 1,875 1,104 70 Technical Products and Services 1,192 912 31 GE Capital Services net earnings 3,965 3,386 17 GENERAL ELECTRIC COMPANY Condensed Statement of Earnings Consolidated Third quarter ended September 30, 2000 2000 1999 Revenues Sales of goods and services $17,920 $15,515 Earnings of GECS - - GECS revenues from services 13,981 11,597 Other income 113 88 Total revenues 32,014 27,200 Costs and expenses Cost of sales, operating and administrative expenses 20,321 17,844 Interest and other financial charges 2,859 2,455 Insurance losses and policyholder and annuity benefits 3,731 2,764 Provision for losses on financing receivables 463 227 Minority interest in net earnings of consolidated 110 92 affiliates Total costs and expenses 27,484 23,382 Earnings before income taxes 4,530 3,818 Provision for income taxes (1,350) (1,165) Net earnings $3,180 $2,653 GE Third quarter ended September 30 2000 1999 Revenues Sales of goods and services $15,578 $13,228 Earnings of GECS 1,478 1,262 GECS revenues from services - - Other income 133 95 Total revenues 17,189 14,585 Costs and expenses Cost of sales, operating and administrative expenses 12,999 11,016 Interest and other financial charges 148 191 Insurance losses and policyholder and annuity benefits - - Provision for losses on financing receivables - - Minority interest in net earnings of consolidated 54 43 affiliates Total costs and expenses 13,201 11,250 Earnings before income taxes 3,988 3,335 Provision for income taxes (808) (682) Net earnings $3,180 $2,653 GECS Third quarter ended September 30 2000 1999 Revenues Sales of goods and services $2,392 $2,352 Earnings of GECS - - GECS revenues from services 14,052 11,650 Other income - - Total revenues 16,444 14,002 Costs and expenses Cost of sales, operating and administrative expenses 7,409 6,926 Interest and other financial charges 2,765 2,291 Insurance losses and policyholder and annuity benefits 3,731 2,764 Provision for losses on financing receivables 463 227 Minority interest in net earnings of consolidated 56 49 affiliates Total costs and expenses 14,424 12,257 Earnings before income taxes 2,020 1,745 Provision for income taxes (542) (483) Net earnings $1,478 $1,262 Per share amounts (in dollars) Diluted earnings per share $0.32 $0.27 Basic earnings per share $0.32 $0.27 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 Nine months ended September 30 2000 1999 Revenues Sales of goods and services $53,208 $44,735 Earnings of GECS - - GECS revenues from services 41,345 33,644 Other income 319 396 Total revenues 94,872 78,775 Costs and expenses Cost of sales, operating and administrative expenses 60,556 51,101 Interest and other financial charges 8,655 7,122 Insurance losses and policyholder and annuity benefits 10,513 8,088 Provision for losses on financing receivables 1,405 1,048 Minority interest in net earnings of consolidated 305 254 affiliates Total costs and expenses 81,434 67,613 Earnings before income taxes 13,438 11,162 Provision for income taxes (4,288) (3,534) Net earnings $9,150 $7,628 GE Nine months ended September 30 2000 1999 Revenues Sales of goods and services $46,362 $38,990 Earnings of GECS 3,965 3,386 GECS revenues from services - - Other income 371 438 Total revenues 50,698 42,814 Costs and expenses Cost of sales, operating and administrative expenses 37,952 32,155 Interest and other financial charges 660 595 Insurance losses and policyholder and annuity benefits - - Provision for losses on financing receivables - - Minority interest in net earnings of consolidated 146 122 affiliates Total costs and expenses 38,758 32,872 Earnings before income taxes 11,940 9,942 Provision for income taxes (2,790) (2,314) Net earnings $9,150 $7,628 GECS Nine months ended September 30 2000 1999 Revenues Sales of goods and services $7,030 $5,953 Earnings of GECS - - GECS revenues from services 41,565 33,810 Other income - - Total revenues 48,595 39,763 Costs and expenses Cost of sales, operating and administrative expenses 22,909 19,248 Interest and other financial charges 8,146 6,641 Insurance losses and policyholder and annuity benefits 10,513 8,088 Provision for losses on financing receivables 1,405 1,048 Minority interest in net earnings of consolidated 159 132 affiliates Total costs and expenses 43,132 35,157 Earnings before income taxes 5,463 4,606 Provision for income taxes (1,498) (1,220) Net earnings $3,965 $3,386 Per share amounts (in dollars) Diluted earnings per share $0.91 $0.76 Basic earnings per share $0.93 $0.78 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 1999 Annual Report to Share Owners for further information about consolidation matters.

Companies

General Electric Co (CDI) (GEC)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today