General Electric Company
24 September 2001
GE Remains On Track For Double-Digit Earnings Growth in 2001;
Positioned for Continued Double-Digit Growth in 2002
NEW YORK, Sept. 21, 2001 - General Electric is on track to deliver double-
digit earnings growth in 2001 and is well-positioned to grow at double-digit
levels in 2002 despite last week's terrorist attack and the economic downturn,
GE Chairman and CEO Jeff Immelt told the financial community in a meeting here
today.
Immelt said that in 2001, even after absorbing the 4 cents per share reduction
for terrorist-related insurance losses announced last week, GE is targeting
earnings per share growth of 11 percent, to $1.41 per share from $1.27 in
2000. Before September 11, the Company had targeted earnings per share of
$1.45-plus and was on track to achieve it.
'GE is built to outperform,' Immelt said. 'Our long-cycle Power Systems and
Medical Systems businesses, as well as our diversified GE Capital business,
continue their strong growth. Their performance will help us mitigate the
effects the terrorist attack had on GE businesses: a reduction in advertising
revenues at NBC, the severe downturn in the airline industry, and our
insurance losses. Despite the events of September 11 and their damage to an
already weak economy, we are confident that GE will grow earnings at double
digits in 2001.'
As for 2002, Immelt said the strength and resilience created by the breadth of
GE's portfolio positions the Company to continue double-digit earnings growth
in the difficult environment it foresees today. As is its practice, GE plans
to provide further guidance on next year in December, but Immelt noted today
that the Company's long-cycle and financial services businesses are expected
to maintain their momentum. Long-cycle businesses, including Power Systems
and Medical Systems, are expected to grow earnings by more than 20 percent; GE
Capital is expected to grow by more than 20 percent through its diversified
portfolio, productivity improvements and completed acquisitions.
Immelt made the following observations about the impact on GE businesses of
the terrorist tragedy:
Employers Reinsurance Corporation's estimate of approximately $600 million in
pre-tax insurance losses from the terrorist attacks has not changed.
The impact of the airlines' cutbacks in scheduled flights on GE Aircraft
Engines and GE Capital Aviation Services is manageable.
GE's short-cycle businesses are seeing order rates approximating pre-September
11 levels. They were managing through a slowdown before September 11 and will
continue to do so.
'The terrible events of September 11 have brought out the best in Americans -
most of all, the determination to work through an overpowering grief and anger
and look past those feelings to the future,' Immelt said. 'At GE we intend to
live up to that determination, and focus on building our businesses and
accelerating our growth. We have the employees and the resources to set the
pace, and we will achieve that mission.'
GE (NYSE:GE), with 2000 revenues of $130 billion, is a diversified technology,
services and manufacturing company with a commitment to achieving customer
success. GE operates in more than 100 countries and employs 313,000 people
worldwide. For more information, visit the company's Web site at
http://www.ge.com.
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 these
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.
Contact: David Frail, (203) 373-3387
david.frail@corporate.ge.com
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