How did GE's industrial segments perform in Q2 2010?

GE's industrial segments showed mixed performance. Energy Infrastructure revenues decreased 9% due to lower volume, but segment profit increased 3% driven by higher prices and cost efficiencies. Technology Infrastructure revenues were down 6% due to lower volume and transactions, with segment profit decreasing 11%.

What was the impact of the adoption of new accounting standards (ASU 2009-16 & 17)?

The adoption of ASU 2009-16 & 17 on January 1, 2010, led to the consolidation of previously off-balance sheet entities, resulting in an increase of approximately $31.1 billion in assets and $33.0 billion in liabilities. This also caused a net reduction of about $1.9 billion in total equity.

What is the outlook for GE Capital's asset reduction strategy?

GE Capital continues to execute its strategy to reduce asset levels. In the first six months of 2010, financing receivables decreased by $17.3 billion through collections exceeding originations, and total borrowings were reduced by $38.2 billion.

What is the company's approach to managing market risk?

GE primarily uses derivatives for risk management, not speculation, focusing on mitigating interest rate and currency risk within its financial services businesses. The company actively monitors counterparty credit risk and has policies in place to manage exposures.

What is the company's capital allocation strategy regarding dividends and share repurchases?

GE's Board of Directors increased the quarterly dividend by 20% to $0.12 per share. Additionally, the company extended its share repurchase program through 2013 and plans to resume repurchases in the third quarter of 2010.

GE 10-Q Quarterly Report Q2 FY2010 — Revenue, Net Income, EPS

Summary

General Electric (GE) reported solid results for the second quarter of 2010, demonstrating resilience despite ongoing economic challenges. The company saw a 14% increase in earnings from continuing operations attributable to the Company, reaching $3.297 billion, with diluted EPS from continuing operations rising to $0.30. This performance was driven by improvements across several key industrial segments, including Energy Infrastructure and Technology Infrastructure, which benefited from higher prices and some cost efficiencies. However, overall revenues saw a 4% decline year-over-year, reflecting ongoing weakness in some industrial markets and the net impact of acquisitions and dispositions. The financial services segment, GE Capital, also experienced revenue headwinds but improved profitability due to lower provisions for losses and a significant gain on the deconsolidation of Regency Energy Partners. The company is actively managing its financial services asset levels, with a reduction in financing receivables and borrowings as planned. Investors should note the ongoing impact of new accounting standards (ASU 2009-16 & 17) which led to the consolidation of previously off-balance sheet entities, increasing both assets and liabilities.

Financial Highlights

42 data points

Beta

Revenue

$36.93B

0.2% Gross Margin

Net Income

$3.11B

0.1% Net Margin

EPS (Diluted)

$2.24

Total Assets

$749.93B

Cash & Equivalents

$72.06B

Free Cash Flow

$7.72B

Financial Statements

Beta

Revenue	$36.93B
Cost of Revenue	$11.13B
Gross Profit	$7.29B
Operating Expenses	$32.76B
Operating Income	$4.36B
Net Income	$3.11B
EPS (Basic)	$2.24
EPS (Diluted)	$2.24

Key Highlights

1Earnings from continuing operations attributable to the Company increased by 14% to $3.297 billion for the second quarter of 2010, compared to $2.883 billion in the same period of 2009.
2Diluted earnings per share (EPS) from continuing operations rose by 15% to $0.30 in the second quarter of 2010.
3Total consolidated revenues for the second quarter of 2010 decreased by 4% to $37.444 billion, influenced by organic revenue declines and the net impact of acquisitions/dispositions, partially offset by a weaker U.S. dollar.
4GE Capital's segment profit saw a significant increase of 93% to $830 million in the second quarter, driven by lower provisions for losses and a gain from the Regency Energy Partners transaction.
5The company continues to reduce its financial services asset levels, with a net decrease in GE Capital's financing receivables and a net reduction in borrowings.
6Adoption of new accounting standards (ASU 2009-16 & 17) resulted in the consolidation of previously off-balance sheet entities, increasing total assets and liabilities.
7GE announced a 20% increase in its quarterly dividend to $0.12 per share and extended its share repurchase program through 2013.

GENERAL ELECTRIC CO Quarterly Report for Q2 Ended Jun 30, 2010

Summary

Financial Highlights

Key Highlights

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