Summary
In its 2010 annual report filed in early 2011, General Electric Company (GE) demonstrated resilience following the challenging economic climate of the preceding years. The company reported an increase in earnings from continuing operations attributable to the company, a 15% rise in 2010 compared to 2009, signaling a stabilization in both industrial and financial services sectors. GE Capital, a significant segment, saw its earnings from continuing operations attributable to the Company increase substantially, driven by improved margins and lower provisions for losses on financing receivables, supported by GE Capital's strategic focus on repositioning as a more focused finance company with reduced asset levels. The company continued to invest in market-leading technologies across its key infrastructure segments, including Energy and Technology. Notably, NBC Universal, while undergoing significant restructuring with a transfer of assets to a new entity in partnership with Comcast, showed revenue growth. GE also highlighted its commitment to returning value to shareholders, with a Board-approved increase in its quarterly dividend, reflecting confidence in its strong backlog and projected economic improvements.
Financial Highlights
46 data points| Revenue | $148.88B |
| Cost of Revenue | $46.00B |
| Gross Profit | $102.88B |
| R&D Expenses | $3.94B |
| SG&A Expenses | $16.34B |
| Operating Expenses | $135.38B |
| Operating Income | $17.25B |
| Interest Expense | $15.54B |
| Net Income | $11.64B |
| EPS (Basic) | $8.48 |
| EPS (Diluted) | $8.48 |
Key Highlights
- 1Consolidated revenues for 2010 were $150.2 billion, a slight decrease from $155.3 billion in 2009, reflecting a continued recovery from the economic downturn.
- 2Earnings from continuing operations attributable to GE increased by 15% to $12.6 billion in 2010, up from $10.9 billion in 2009.
- 3GE Capital's earnings from continuing operations attributable to the Company saw a significant increase to $3.3 billion in 2010, up from $1.5 billion in 2009, driven by improved economic conditions and a strategic reduction in ending net investment.
- 4The company paid $5.2 billion in dividends in 2010, with the quarterly dividend per share increasing from $0.10 to $0.14 due to strong cash generation and improved performance.
- 5GE-funded research and development expenditures increased to $3.9 billion in 2010, up from $3.3 billion in 2009, with a significant portion allocated to the Technology Infrastructure segment's Aviation business.
- 6Total backlog of firm unfilled orders at the end of 2010 was $66.7 billion, a 1% decrease from 2009, with product services orders beyond the succeeding 12 months totaling approximately $108.7 billion, resulting in a total backlog of $175.4 billion.
- 7The company divested several businesses as part of its strategy to reduce GE Capital's size and focus on core financial services products, including the sale of BAC and agreements to sell Consumer RV Marine and Consumer Mexico.