GE GE Aerospace

Date of Report (Date of earliest event reported) October 17, 2014
		General Electric Company
		(Exact name of registrant as specified in its charter)
New York				001-00035		14-0689340
(State or other jurisdiction of incorporation)				(Commission File Number)		(IRS Employer Identification No.)
3135 Easton Turnpike, Fairfield, Connecticut						06828-0001
(Address of principal executive offices)						(Zip Code)
Registrant's telephone number, including area code   (203) 373-2211
(Former name or former address, if changed since last report.)

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

		General Electric Company
		(Registrant)
Date: October 17, 2014		/s/ Jan R. Hauser
		Jan R. Hauser Vice President and Controller

GE Reports 3Q'14 Operating EPS $0.38, +6%

3Q Industrial Profit +9%; Operating Margins +90 Basis Points;

3Q Industrial Organic Revenues +4%; On Track for Higher End of +4-7% for 2014;

Orders +22%; Record Backlog of $250B, +$21B from Year-Ago

Total-Year Framework on Track

 

·	3Q operating EPS $0.38,  +6%

·	3Q Industrial segment profit +9%, YTD +10%

·	3Q Industrial segment organic revenues +4%, YTD +5%

·	3Q margins +90 bps, YTD +50 bps

·	3Q orders +22%, Growth market orders +34%, U.S. orders +25%

·	Cash generation of $7.2 billion year-to-date, $3.8 billion generated in 3Q

·	GE Capital ENI (excluding cash and equivalents) at $365 billion, down 5% vs. year-ago

FAIRFIELD, Conn. – October 17, 2014 – GE [NYSE: GE] announced today third-quarter 2014 operating earnings of $3.8 billion, with operating earnings per share of $0.38, up 6% from the third quarter of 2013.  GAAP earnings from continuing operations were $3.5 billion, with earnings per share of $0.34, up 6% from last year.  Revenues were $36.2 billion for the quarter, up 1% from the year-ago period.

"GE performed well in the quarter, with industrial segment profit growth of 9% and significant margin expansion," said GE Chairman and CEO Jeff Immelt.  "The environment is volatile, but infrastructure growth opportunities exist, and GE is executing well.  This is reflected in healthy order growth and margin expansion.  During the quarter we continued to execute on our portfolio strategy, including the successful IPO of Synchrony Financial and announcing the sale of our Appliances business."

Industrial segment profits rose 9% in the third quarter to $4.3 billion and industrial segment margins expanded 90 basis points.  Industrial segment organic revenue growth was 4%.  Orders were up 22% in the quarter, with increases in five of six segments.  Growth market orders rose 34% with increases in five of nine growth regions.  GE expects industrial organic revenue growth for the year to be at the higher end of the 4-7% range.

GE's backlog of equipment and services at the end of the quarter was a record $250 billion, up $21 billion over the year-ago period.  New technologies drove a 31% increase in equipment orders in the quarter; these included orders for more than 1,000 Tier 4-compliant locomotives, 4 HA gas turbines, and launch orders for the GE9X aircraft engine.  Services orders grew 10% in the quarter.  As part of GE's strategy to grow its services business, the Company also announced in October the opening of its Predix™ Industrial Internet platform to all users starting in 2015, and that GE Predictivity™ solutions revenues are expected to exceed $1 billion in 2014.

During the quarter GE completed the IPO of its North American Retail Finance business, Synchrony Financial, the first step of a planned, staged exit from the business.  GE is targeting a complete exit from Synchrony Financial through a split-off transaction in late 2015.  In the third quarter GE also agreed to sell its Appliances business to Electrolux for $3.3 billion, bringing total announced dispositions to $4.7 billion for the year.  The sale is expected to generate an approximate after-tax gain of $0.05-$0.07 per share at closing.  Both transactions are subject to customary regulatory and other approvals. GE continues to work through approvals for its acquisition of Alstom's Power and Grid businesses, targeted to close in 2015.  GE expects Alstom to be accretive to earnings in 2015, and add $0.06-$0.09 per share in 2016.  Through these transactions, GE is executing on its strategy to achieve 75% of its earnings from its Industrial businesses by 2016.

 

 

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Third-quarter Highlights:

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GE (NYSE: GE) works on things that matter.  The best people and the best technologies taking on the toughest challenges.  Finding solutions in energy, health and home, transportation and finance.  Building, powering, moving and curing the world.  Not just imagining.  Doing.  GE works.  For more information, visit the company's website at www.ge.com.

GE's Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE's Facebook page and Twitter accounts, including @GE_Reports, contain a significant amount of information about GE, including financial and other information for investors.  GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.

This document contains "forward-looking statements" – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," or "target." Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about expected income; earnings per share; revenues; organic growth; margins; cost structure; restructuring charges; cash flows; return on capital; capital expenditures, capital allocation or capital structure; dividends; and the split between Industrial and GE Capital earnings. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including interest and exchange rate volatility, commodity and equity prices and the value of financial assets; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation's (GECC) funding, GECC's exposure to counterparties and our ability to reduce GECC's asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flows and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; GECC's ability to pay dividends to GE at the planned level, which may be affected by GECC's cash flows and earnings, financial services regulation and oversight, and other factors; our ability to convert pre-order commitments/wins into orders; the price we realize on orders since commitments/wins are stated at list prices; customer actions or developments such as early aircraft retirements or reduced energy demand and other factors that may affect the level of demand and financial performance of the major industries and customers we serve; the effectiveness of our risk management framework; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; adverse market conditions, timing of and ability to obtain required bank regulatory approvals, or other factors relating to us or Synchrony Financial that could prevent us from completing the Synchrony split-off as planned; our capital allocation plans, as such plans may change including with respect to the timing and size of share repurchases, acquisitions, joint ventures, dispositions and other strategic actions; our success in completing announced transactions, such as the proposed transactions and alliances with Alstom, and our ability to realize anticipated earnings and savings; our success in integrating acquired businesses and operating joint ventures; the impact of potential information technology or data security breaches; and the other factors that are described in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2013. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.

Investor Contact:

Matt Cribbins, 203.373.2424

matthewg.cribbins@ge.com

Media Contact:

Seth Martin, 203.572.3567

seth.martin@ge.com

 

 

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(a)	Refers to the Industrial businesses of the Company including GECC on an equity basis.

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