What was the overall financial performance of GE in Q2 2013 compared to Q2 2012?

GE reported a slight increase in net earnings attributable to the company, up 1% to $3.133 billion, and a modest rise in diluted EPS to $0.30. However, consolidated revenues decreased by 4% to $35.1 billion, primarily due to a stronger U.S. dollar and lower organic revenues across its businesses.

What were the key drivers of the revenue decline?

The primary drivers for the revenue decline were the strengthening U.S. dollar, which negatively impacted the translation of foreign currency revenues, and lower organic revenue growth across several segments. The Power & Water segment experienced a significant 17% revenue decrease, while GE Capital's revenues were down 3% due to reduced investment levels and increased impairments.

What significant strategic transactions occurred during the quarter?

GE completed the sale of its remaining 49% equity interest in NBCUniversal LLC to Comcast for $16.7 billion. This transaction significantly impacted the company's financial position and cash flows, with the proceeds providing a substantial cash inflow.

How did GE's industrial segments perform individually?

Performance varied across industrial segments. Power & Water saw a substantial revenue decrease of 17% due to lower volumes. In contrast, Aviation and Oil & Gas reported revenue increases of 9% and 9% respectively, driven by higher volumes and prices. Healthcare revenues were flat, while Transportation and Home & Business Solutions showed modest revenue growth.

What is the status of GE Capital (GECC) and its strategy?

GE Capital continued its strategy to manage its balance sheet size and focus on core, profitable businesses, exiting non-strategic or underperforming areas. GECC's revenues decreased by 3%, attributed to lower net investment and higher impairments, partially offset by gains. The company is actively working to reduce GECC's overall asset levels.

GE 10-Q Quarterly Report Q2 FY2013 — Revenue, Net Income, EPS

Summary

General Electric Company (GE) reported its second-quarter results for 2013, showing a slight increase in net earnings attributable to the company, reaching $3.133 billion, a 1% rise from the prior year's $3.105 billion. Diluted earnings per share also saw a modest increase to $0.30 from $0.29. Total consolidated revenues for the quarter were $35.1 billion, a 4% decrease compared to the same period in 2012, influenced by a stronger U.S. dollar and lower organic revenues. The industrial segments showed mixed performance, with Power & Water revenues declining significantly, while Aviation and Oil & Gas reported revenue growth. GE Capital's revenues decreased by 3%, primarily due to lower net investment and higher impairments, though this was partially offset by gains. The company continued its strategy of managing its balance sheet size and exiting non-strategic businesses. A significant event during the quarter was the completion of the sale of GE's remaining 49% interest in NBCUniversal LLC to Comcast for $16.7 billion, which included substantial cash proceeds. This transaction, along with other dispositions, impacted reported revenues and earnings. GE also managed its financial services arm, GECC, by reducing its overall asset levels and focusing on core businesses.

Financial Highlights

41 data points

Beta

Revenue

$35.06B

0.6% Gross Margin

Net Income

$3.13B

0.1% Net Margin

EPS (Diluted)

$2.40

Total Assets

$660.54B

Free Cash Flow

$3.75B

Financial Statements

Beta

Revenue	$35.06B
Cost of Revenue	$13.87B
Gross Profit	$21.19B
Operating Expenses	$31.33B
Operating Income	$5.63B
Net Income	$3.13B
EPS (Basic)	$2.40
EPS (Diluted)	$2.40
Shares Outstanding (Basic)	1.28B

Key Highlights

1Net earnings attributable to GE common shareholders increased slightly by 1% to $3.133 billion for the quarter.
2Total consolidated revenues decreased by 4% to $35.1 billion, impacted by currency fluctuations and lower organic revenues.
3GE completed the sale of its remaining 49% stake in NBCUniversal LLC to Comcast for $16.7 billion.
4Industrial segment performance was varied, with Power & Water revenues down 17% but Aviation and Oil & Gas revenues showing growth.
5GE Capital's revenues declined 3% due to lower investment levels and higher impairments.
6The company continued its efforts to reduce its financial services (GECC) balance sheet size.
7GE's operating cash flow from industrial businesses (GE CFOA) decreased to $3.7 billion from $6.8 billion year-over-year.

GENERAL ELECTRIC CO Quarterly Report for Q2 Ended Jun 30, 2013

Summary

Financial Highlights

Key Highlights

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