3rd Quarter & 9 Mths Results

GENERAL ELECTRIC COMPANY 7 October 1999 GE Reports Record Third-Quarter 1999 Results Earnings Per Share Up 16% to $.80 Operating Margin Reaches 16.7% Fairfield, Conn. -- Oct. 7, 1999 -- GE achieved record earnings for the third quarter of 1999 with another double-digit increase, Chairman John F. Welch reported today. Specific highlights include: * Third-quarter earnings per share increased 16%, to $.80, up from last year's $.69, and earnings also increased 16% to $2.653 billion. Both earnings per share and earnings were records for the quarter. * Revenues rose to a record $27.2 billion, 13% more than last year's third quarter, reflecting continued growth from globalization and product services. * GE's third-quarter operating margin was 16.7% of sales, up from last year's 15.5%, and was a record for the quarter. The third-quarter margin growth reflects the increasing benefits from GE's focus on product services and Six Sigma quality initiatives. * GE Capital Services' third-quarter earnings rose to $1,262 million, 17% more than last year's $1,082 million. These record results reflect the globalization and diversity of GE Capital's 28 businesses. GECS' results were driven by strong double-digit increases in its Consumer Services and Mid-Market Financing segments. * Cash generated from GE's operating activities during the first nine months was a record $7.4 billion, up 25% from last year's $5.9 billion. As part of the six-year $17 billion share repurchase program, GE purchased $418 million of its stock during the third quarter to reach $14.9 billion--300 million shares--purchased since December 1994. 'In addition to delivering record third-quarter results, GE's businesses continued to make aggressive moves to position themselves for strong future growth,' Mr. Welch said. Highlights of recent activities include: Power Systems continued to win orders at a record-setting pace with year-to- date orders up 30% to $9.6 billion. Services orders rose 37% in the quarter, bringing total commitments for long-term service agreements to nearly $5 billion. The announcements to acquire Thomassen Aero and the hydro business of Kvaerner will expand Power System's global position. Aircraft Engines continued to win more than 50% of the world's engine orders for airline passenger jets. China Airlines became a new GE customer with a nearly $600 million order and Air France launched the CFM56 engine on the new Airbus A318 twin-jet. GE was selected to develop a 115,000-pound-thrust GE90 engine for longer-range Boeing 777-200X and -300X aircraft, an agreement valued at more than $10 billion. Aircraft Engines was also awarded a $440 million contract to develop engines for the Joint Strike Fighter aircraft. Medical Systems expanded its existing contract with Columbia HCA into a five- year, $1.5 billion agreement covering both equipment and services. The business continued to accelerate growth by announcing agreements to acquire OEC Medical, Applicare and Prucka Engineering. During the quarter, GE Medical launched the new Senographe 2000D, the industry's first full-field digital mammography system. NBC demonstrated its network strength by winning key demographic and household ratings during the important first week of the new fall season. NBC solidified its station and cable position by making a significant investment in Paxson Communications, the nation's third-largest independent television broadcasting company. NBC enhanced its interest in ValueVision, the third- largest shopping network, by rebranding the service as SnapTV.com and integrating the service into Snap.com. CNBC made a strategic investment in Archipeligo, an electronic trading network, and NBC also continued to expand its Internet equity portfolio with investments in Replay, Net2Phone, Wink and Telescan. GE Capital announced an agreement to invest $200 million in Crown Castle -- the leading owner/operator of communications towers and transmission networks. This investment will provide synergies with GE Americom and NBC. GE Capital's purchase of 13,000 commercial cars and trucks, with a net asset value of $177 million from Bank of America, provided geographic expansion for its fleet business and significantly increased its small fleet leasing business. During the quarter, GE Capital continued to aggressively invest in the Internet sector and currently has a portfolio of 45 e-business companies. Transportation Systems shipped a record 192 locomotives in the quarter. The GE- Harris service joint venture won two major contracts: at Canadian National Railway Company, GE-Harris will provide a new Computer Aided Dispatch system; and at Kansas City Southern Railroad, GE-Harris will provide a LOCOTROL EB (electronic brake distributed power system). GE Appliances experienced strong demand for new products introduced in the third quarter including the ultra-quiet Triton dishwasher, and the Advantium speedcooking oven, which can cook in one-fourth the time of a conventional oven. Appliances announced a strategic investment and partnership in ImproveNet.Com, a site that helps homeowners and remodeling professionals. GE Lighting won WalMart's supplier of the quarter award and was voted the supplier of the year by major retailers. GE Plastics continued to expand in the high-growth Asian region by beginning construction of a compounding plant in Thailand and announcing plans for a compounding plant in Shanghai. Mr. Welch concluded: 'The record third-quarter results -- driven by a combination of global growth, expansion of our product services, rapid introduction of new products and our Six Sigma quality initiatives -- position GE to deliver another year of record performance in 1999.' GENERAL ELECTRIC COMPANY All amounts except per- share earnings are in millions of U.S. dollars. THIRD QUARTER 1999 1998 V% Revenues $ 27,200 $ 24,136 13 Earnings $ 2,653 $ 2,284 16 Per-Share Earnings - diluted $ 0.80 $ 0.69 16 - basic $ 0.81 $ 0.70 16 Segment Information 1999 1998 V% Revenues Aircraft Engines $ 2,610 $ 2,525 3 Appliances 1,449 1,469 (1) Industrial Products and 2,802 2,571 9 Systems NBC 1,076 1,039 4 Plastics 1,690 1,612 5 Power Systems 2,451 1,913 28 Technical Products and 1,601 1,227 30 Services GE Capital Services 14,002 12,016 17 Segment profit Aircraft Engines 535 417 28 Appliances 137 189 (28) Industrial Products and 491 393 25 Systems NBC 265 202 31 Plastics 390 412 (5) Power Systems 383 254 51 Technical Products and 316 249 27 Services GE Capital Services net 1,262 1,082 17 earnings GENERAL ELECTRIC COMPANY All amounts except per-share earnings are in millions of U.S. dollars. NINE MONTHS ENDED SEPTEMBER 30 1999 1998 V% Revenues $ 78,775 $ 71,832 10 Earnings $ 7,628 $ 6,625 15 Per-Share Earnings - diluted $ 2.29 $ 1.99 15 - basic $ 2.33 $ 2.03 15 Segment Information 1999 1998 V% Revenues Aircraft Engines $ 7,605 $ 7,395 3 Appliances 4,126 4,133 - Industrial Products 8,226 7,934 4 and Systems NBC 4,038 3,928 3 Plastics 5,046 4,898 3 Power Systems 6,468 5,677 14 Technical Products 4,721 3,581 32 and Services GE Capital Services 39,763 34,968 14 Segment profit Aircraft Engines 1,528 1,263 21 Appliances 475 553 (14) Industrial Products 1,424 1,261 13 and Systems NBC 1,143 976 17 Plastics 1,255 1,238 1 Power Systems 1,064 769 38 Technical Products 912 745 22 and Services GE Capital Services 3,386 2,896 17 net earnings CONSOLIDATED Nine months ended September 30 1999 1998 Revenues Sales of goods and services $44,735 $41,854 Earnings of GECS - - GECS revenues from services 33,644 29,511 Other income 396 467 Total revenues 78,775 71,832 Costs and expenses Cost of sales, operating and 51,101 46,961 administrative expenses Interest and other financial 7,122 6,939 charges Insurance losses and 8,088 6,852 policyholder and annuity benefits Provision for losses on 1,048 1,047 financing receivables Minority interest in net 254 185 earnings of consolidated affiliates Total costs and expenses 67,613 61,984 Earnings before income taxes 11,162 9,848 Provision for income taxes (3,534) (3,223) Net earnings $7,628 $6,625 Per share amounts (in dollars) Diluted earnings per share $2.29 $1.99 Basic earnings per share $2.33 $2.03 Dividends declared per share (in $1.05 $0.90 dollars) GE Nine months ended September 30 1999 1998 Revenues Sales of goods and services $ 38,990 $36,700 Earnings of GECS 3,386 2,896 GECS revenues from services - - Other income 438 497 Total revenues 42,814 40,093 Costs and expenses Cost of sales, operating and 32,155 30,713 administrative expenses Interest and other financial 595 610 charges Insurance losses and - policyholder and annuity benefits - Provision for losses on - financing receivables - Minority interest in net 122 81 earnings of consolidated affiliates Total costs and expenses 32,872 31,404 Earnings before income taxes 9,942 8,689 Provision for income taxes (2,314) (2,064) Net earnings $7,628 $6,625 Per share amounts (in dollars) Diluted earnings per share Basic earnings per share Dividends declared per share (in dollars) GECS Nine months ended September 30 1999 1998 Revenues Sales of goods and services $5,953 $5,325 Earnings of GECS - - GECS revenues from services 33,810 29,643 Other income - - Total revenues 39,763 34,968 Costs and expenses Cost of sales, operating and 19,248 16,510 administrative expenses Interest and other financial 6,641 6,400 charges Insurance losses and 8,088 6,852 policyholder and annuity benefits Provision for losses on 1,048 1,047 financing receivables Minority interest in net 132 104 earnings of consolidated affiliates Total costs and expenses 35,157 30,913 Earnings before income taxes 4,606 4,055 Provision for income taxes (1,220) (1,159) Net earnings $3,386 $2,896 Per share amounts (in dollars) Diluted earnings per share Basic earnings per share Dividends declared per share (in dollars) 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. CONSOLIDATED Third quarter ended September 30 1999 1998 Revenues Sales of goods and services $15,515 $13,814 Earnings of GECS - - GECS revenues from services 11,597 10,164 Other income 88 158 Total revenues 27,200 24,136 Costs and expenses Cost of sales, operating and 17,844 15,763 administrative expenses Interest and other financial 2,455 2,361 charges Insurance losses and 2,764 2,239 policyholder and annuity benefits Provision for losses on 227 306 financing receivables Minority interest in net 92 68 earnings of consolidated affiliates Total costs and expenses 23,382 20,737 Earnings before income taxes 3,818 3,399 Provision for income taxes (1,165) (1,115) Net earnings $2,653 $2,284 Per share amounts (in dollars) Diluted earnings per share $0.80 $0.69 Basic earnings per share $0.81 $0.70 Dividends declared per share (in $0.35 $0.30 dollars) GE Third quarter ended September 30 1999 1998 Revenues Sales of goods and services $13,228 $12,075 Earnings of GECS 1,262 1,082 GECS revenues from services - - Other income 95 169 Total revenues 14,585 13,326 Costs and expenses Cost of sales, operating and 11,016 10,200 administrative expenses Interest and other financial 191 199 charges Insurance losses and - policyholder and annuity benefits - Provision for losses on - financing receivables - Minority interest in net 43 30 earnings of consolidated affiliates Total costs and expenses 11,250 10,429 Earnings before income taxes 3,335 2,897 Provision for income taxes (682) (613) Net earnings $2,653 $2,284 Per share amounts (in dollars) Diluted earnings per share Basic earnings per share Dividends declared per share (in dollars) GECS Third quarter ended September 30 1999 1998 Revenues Sales of goods and services $2,352 $1,806 Earnings of GECS - - GECS revenues from services 11,650 10,210 Other income - - Total revenues 14,002 12,016 Costs and expenses Cost of sales, operating and 6,926 5,661 administrative expenses Interest and other financial 2,291 2,188 charges Insurance losses and 2,764 2,239 policyholder and annuity benefits Provision for losses on 227 306 financing receivables Minority interest in net 49 38 earnings of consolidated affiliates Total costs and expenses 12,257 10,432 Earnings before income taxes 1,745 1,584 Provision for income taxes (483) (502) Net earnings $1,262 $1,082 Per share amounts (in dollars) Diluted earnings per share Basic earnings per share Dividends declared per share (in dollars) 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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