OREANDA-NEWS. July 20, 2012. GE Reports 2Q’12 Operating EPS USD 0.38 +12%; Industrial Segment Revenues of USD 25B, +9%; Organic Growth +10%; Record backlog of USD 204B, Orders pricing up 1.2%; GE Capital paid USD 3B dividend, CFOA year-to-date of USD 6.8B, +55%
 

2Q 2012 Highlights

• Ninth consecutive quarter of strong operating earnings growth

 2Q Operating EPS of USD 0.38, up 12%

 2Q Continuing EPS of USD 0.34, up 3%

• YTD orders up 8%, 2Q Infrastructure orders, down 1%, up 1% excluding FX

• Total Revenues of USD 36.5 billion, up 2%

 FX negatively impacted revenues by USD 0.9 billion

 GE Capital revenues down 8% driven by planned shrinkage

• Executing on our growth strategy

 Industrial growth market orders up 14%, revenues up 17%

 Energy segment profit up 15%, Oil & Gas up 11%, Transportation up 58%

• GE Capital earned USD 2.1 billion, up 31%, returned USD 3 billion to parent; Tier One Common at 10.1%

• No change in company outlook; on track to deliver on double-digit earnings growth in 2012

GE [NYSE: GE] announced today second-quarter 2012 Operating Earnings of USD 4.0 billion, or USD 0.38 per share, up 7% and 12% respectively from the second-quarter of 2011. GAAP earnings from continuing operations (attributable to GE) were USD 3.7 billion, up 2%, or USD 0.34 per share, up 3%. Revenues were USD 36.5 billion for the quarter, up 2%. Industrial segment revenue grew by 9%, with organic growth of 10%. The strength of GE’s Industrial portfolio was underscored by strong segment profit increases in Energy, Oil & Gas and Transportation. The company is performing well and is on track to deliver double-digit earnings growth in 2012 for both Industrial and GE Capital segments.

“Today’s results demonstrate that we are executing on our growth strategy in the midst of a still volatile global economy,” said GE Chairman and CEO Jeff Immelt. “GE Capital’s strong operating performance and capital position allowed it to return a USD 3 billion dividend to the parent, and our Industrial segments delivered another quarter of double-digit organic revenue growth. Our strategy to invest in growth markets is paying off, as we achieved orders expansion in growth markets of 14% and revenue growth of 17%. We ended the quarter with a record backlog.”

Infrastructure orders were USD 23.1 billion, down 1% primarily driven by a 37% decrease in orders for wind turbines. Orders were up 8% on a year-to-date basis. Total orders performance included: Aviation up 5% and Transportation up 2%. Orders for the quarter included: GE Transportation orders for 176 locomotives from railroad customers in North America, up 28% from second-quarter 2011. In Australia, GE Energy is supplying 5 Frame 6B gas turbines, 3 SC4 single-flow steam turbines and 5 heat recovery generators to provide 500 megawatts of installed power capacity for a combined cycle power plant for the Ichthys liquefied natural gas (LNG) project. It will enable the facility to produce more than 8 million tons of LNG each year. In Russia, GE Energy signed a deal with REP Holding for the assembly of 28 GE MS 5002E gas turbines.

Total revenues for the quarter were USD 36.5 billion, up 2%. Revenues were negatively impacted by USD 0.9 billion due to FX and further shrinkage of our GE Capital business. GE’s second-quarter Industrial segment revenues were USD 25.0 billion, up 9%. Industrial segment organic revenues were up 10% for the quarter. Industrial growth market revenues were up 17%, driven by double-digit growth in Australia, Canada, China, Latin America, the Middle East/North Africa, Southeast Asia and Russia.

Industrial segment profit was up 7% to USD 3.7 billion and segment operating profits were strong in Energy Infrastructure and Transportation, up 13% and 58%, respectively. In addition, pricing on orders was up 1.2% in total with higher prices in 4 out of 5 businesses. Energy Infrastructure pricing was up 1.8%. Cash generated from operating activities was up 55% at USD 6.8 billion. GE ended the quarter with USD 74 billion of consolidated cash and cash equivalents.

Immelt concluded, “Our Industrial outlook remains positive. Margins have stabilized and Energy, Oil & Gas, and Transportation performed very well with double-digit profit increases. We are confident in our double-digit EPS growth expectations for 2012 and are raising our operating cash expectations to USD 17-19 billion based upon the restart of the GE Capital dividend.”

Second-quarter Highlights:

Second-quarter operating earnings were USD 4.0 billion, up 7% from second quarter 2011 and operating EPS was USD 0.38, up 12% from USD 0.34 in the second quarter of last year. GAAP earnings from continuing operations (attributable to GE) were USD 3.7 billion, up 2%, or USD 0.34 per share, up 3% from the second quarter of 2011.

Including the effects of discontinued operations, second-quarter net earnings attributable to GE were USD 3.1 billion (USD 0.29 per share attributable to common shareowners) in 2012 compared with USD 3.7 billion (USD 0.35 per share attributable to common shareowners) in the second quarter of 2011. Discontinued Operations included USD 0.05 per share of charges primarily related to WMC and GE Money Japan reserve adjustments. Positive one-time tax items of USD 0.02 per share were offset by USD 0.02 per share of restructuring and other charges.

Second-quarter revenues increased 2% to USD 36.5 billion. Industrial sales of USD 25.1 billion increased 9% versus the second quarter of 2011. GE Capital (GECC) revenues of USD 11.5 billion decreased 8% from last year, driven by lower assets in-line with plan.

Cash generated from GE operating activities in the first six months of 2012 totaled USD 6.8 billion, up 55% from USD 4.4 billion last year. Cash generated from GE Industrial operating activities in the first six months of 2012 totaled USD 3.8 billion, down 13% from last year.

The accompanying tables include information integral to assessing the Company’s financial position, operating performance and cash flow.