Summary
General Electric Company (GE) in 2009 navigated a challenging economic landscape, reporting consolidated revenues of $84.3 billion, a decrease from $97.2 billion in 2008. The company's diversified business segments, including Energy Infrastructure, Technology Infrastructure, NBC Universal, Capital Finance, and Consumer & Industrial, all experienced impacts from the weakened global economy. GE Capital, the financial services arm, saw a significant decline in earnings, down 80% in 2009, reflecting broader financial market disruptions, increased loan loss provisions, and a strategic initiative to reduce its ending net investment. Despite these challenges, GE maintained its focus on core industrial businesses and initiated strategic actions such as the planned sale of NBC Universal to Comcast, which would result in GE owning a 49% stake in the new entity. GE continued to invest in research and development, totaling $3.3 billion in 2009, with a significant portion allocated to its Technology Infrastructure segment, particularly in Aviation. The company also took steps to strengthen its liquidity position, including reducing its dividend and managing its commercial paper borrowings. While facing headwinds, GE expressed optimism about a potential stabilization in the global economy and a strong backlog positioning it for future growth.
Financial Highlights
47 data points| Revenue | $154.40B |
| Cost of Revenue | $50.58B |
| Gross Profit | $103.82B |
| R&D Expenses | $3.29B |
| SG&A Expenses | $14.84B |
| Operating Expenses | $144.57B |
| Operating Income | $15.61B |
| Interest Expense | $17.70B |
| Net Income | $11.03B |
| EPS (Basic) | $8.08 |
| EPS (Diluted) | $8.08 |
Key Highlights
- 1Consolidated revenues for 2009 were $84.3 billion, down from $97.2 billion in 2008, reflecting challenging economic conditions.
- 2GE Capital's earnings declined significantly (down 80% in 2009), attributed to financial market disruptions and a strategic reduction in its investment base.
- 3The company announced a significant strategic move to sell NBC Universal assets to Comcast, retaining a 49% interest in the new entity.
- 4GE invested $3.3 billion in research and development, with a substantial portion directed towards the Technology Infrastructure segment, particularly Aviation.
- 5GE took actions to bolster liquidity, including a 68% reduction in its quarterly common stock dividend, saving approximately $9 billion annually.
- 6The company maintained a strong backlog, entering 2010 with a positive outlook for growth in 2011 and 2012, indicating confidence in its industrial segments.
- 7GE's credit ratings were downgraded by S&P and Moody's in March 2009 but maintained stable outlooks, with short-term ratings affirmed at the highest levels.