GENERAL ELECTRIC CO Quarterly Report for Q3 Ended Sep 30, 2011

Summary

General Electric Company (GE) reported its third-quarter and year-to-date results for 2011. The company demonstrated solid year-over-year growth in net earnings attributable to common shareholders, increasing by 36% for the nine-month period. Total revenues remained relatively flat year-over-year for the third quarter but showed a 1% increase for the nine-month period, driven by organic growth, a weaker U.S. dollar, and strategic acquisitions, partially offset by dispositions. The industrial segments, particularly Energy Infrastructure, Aviation, Healthcare, and Transportation, showed revenue growth, with Energy Infrastructure benefiting significantly from acquisitions. GE Capital also reported revenue growth, driven by stronger gains and a weaker dollar, with improved net earnings due to lower loss provisions. The company successfully reduced its GE Capital ending net investment and completed the redemption of its preferred stock held by Berkshire Hathaway. The company is actively managing its financial services portfolio, with a decrease in total borrowings and financing receivables. GE's overall financial position appears stable, with a continued focus on liquidity management and strategic capital allocation. The company also addressed operational changes, including segment realignments and changes in pension plan cost allocation. Despite a challenging economic environment, GE's diversified business model and strategic initiatives appear to be yielding positive results in terms of profitability and financial stability.

Key Highlights

• 1Net earnings attributable to GE common shareowners increased 36% year-over-year for the first nine months of 2011, reaching $9.39 billion.
• 2Total revenues for the nine months ended September 30, 2011, increased 1% to $109.3 billion, driven by organic growth, a weaker U.S. dollar, and acquisitions, despite some dispositions.
• 3The Energy Infrastructure segment saw significant revenue growth of 16% for the nine months, bolstered by acquisitions like Converteam and Dresser, Inc.
• 4GE Capital reported a 79% increase in net earnings for the third quarter, primarily due to lower provisions for financing receivables and improved asset management.
• 5GE successfully redeemed its 10% cumulative perpetual preferred stock from Berkshire Hathaway for $3.3 billion in October 2011, eliminating future preferred dividend payments.
• 6The company's liquidity position remained strong, with $91.4 billion in cash and equivalents at September 30, 2011, and a reduction in GE Capital's net investment.
• 7Industrial sales, excluding the impact of NBC Universal, showed strong organic revenue growth of 13% for the nine months ended September 30, 2011.

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