What was the overall financial performance of General Electric in the third quarter of 2006?

General Electric reported a 10% increase in earnings from continuing operations to $5.059 billion and a 12% increase in total revenues to $40.9 billion for the third quarter of 2006 compared to the same period in 2005. Diluted earnings per share rose to $0.49 from $0.43.

What major divestitures or sales were completed or planned during this period?

GE completed the sale of its property and casualty insurance and reinsurance businesses and European life and health operations (GE Insurance Solutions) in June 2006. In October 2006, an agreement was reached to sell GE Life. These businesses are being reported as discontinued operations.

How did the different business segments perform?

The Infrastructure segment saw significant growth with revenues up 20% and segment profit up 24%. Industrial revenues grew 3%, Healthcare revenues up 9%, NBC Universal revenues up 20%, Commercial Finance revenues up 11%, and GE Money revenues up 14% in the third quarter of 2006. Most segments showed strong organic growth.

What is the status of GE's financial services arm (GECS)?

GE's Financial Services (GECS) segment generated $16.3 billion in revenues in the third quarter, an increase of 9%. Financing receivables, a key asset for GECS, grew to $310.3 billion. The company also continues to manage its portfolio of financing receivables, with delinquency rates remaining relatively stable in Commercial Finance and slightly increasing in GE Money.

GE 10-Q Quarterly Report Q3 FY2006 — Revenue, Net Income, EPS

Summary

General Electric Company (GE) reported solid financial results for the third quarter and first nine months of 2006, demonstrating continued growth across its diverse business segments. The company saw an increase in both revenues and earnings, driven by strong organic growth in its Infrastructure, Industrial, Healthcare, Commercial Finance, and GE Money segments. Significant progress was made in divesting non-core insurance operations, with the completed sale of GE Insurance Solutions and the planned sale of GE Life, which are being accounted for as discontinued operations. This strategic repositioning aims to streamline the business portfolio and enhance focus on core industrial and financial services activities. GE's financial services arm, GECS, continued to be a significant contributor to overall performance, showing growth in revenues and managing its financing receivables portfolio effectively, despite some increases in non-earning receivables. The company also repurchased a substantial amount of its own stock, signaling confidence in its financial health and commitment to returning value to shareholders. Looking ahead, GE appears well-positioned to continue its growth trajectory, supported by a strong balance sheet and diverse operating segments, while actively managing its strategic portfolio.

Key Highlights

1Consolidated revenues increased by 12% to $40.9 billion for the third quarter of 2006, driven by 10% organic revenue growth.
2Earnings from continuing operations rose by 10% to $5.059 billion in Q3 2006, with diluted EPS of $0.49, up from $0.43 in Q3 2005.
3Significant progress in divesting insurance businesses: sale of GE Insurance Solutions completed in June 2006, and agreement to sell GE Life in October 2006.
4Infrastructure segment showed strong performance with revenues up 20% and segment profit up 24% in Q3 2006.
5GE's financial services (GECS) revenues grew 9% in Q3 2006, and financing receivables increased by $22.6 billion year-to-date.
6The company repurchased approximately 48.8 million shares for $1.6 billion in the third quarter under its $25 billion share repurchase program.
7Adoption of SFAS 123R for stock-based compensation led to expensing of stock options, with total stock option expense of $27 million in Q3 2006.

GENERAL ELECTRIC CO Quarterly Report for Q3 Ended Sep 30, 2006

Summary

Key Highlights

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