GE 4Q 2015 EARNINGS
GE 4Q 2015 EARNINGS GE INDUSTRIALOPERATING VERTICALS EPS4Q2015FullYear20154Q Industrial operating Verticals EPS 0.52, 27%4Q GAAP EPS from continuing operations 0.26, -26%Total Industrial margins*/** 18.3% for 4Q, 80 bps, 110 bps for 2015Orders 1% organic; record backlog of 315B, 18% vs. 4Q’14, 7% ex-AlstomReaffirms 2016 Industrial operating Verticals EPS guidance of 1.45–1.55GAAP EPS FROMCONTINUING OPSGE CFOAGE INDUSTRIAL VERTICALSREVENUESINDUSTRIALSEGMENTMARGINS*TOTAL INDUSTRIAL**PROFITMARGINS* 0.52 0.26 9.8B 33.8B 5.1B 18.3% 19.3% 27%-26% 1.31 0.17 17%-82% 23% 80 bps 50 bps 16.4B 117.0B 15.9B 15.3%17.0% 8% 1%-6% 3% organic0% 110 bps 3% 80 bps 10% organicHIGHLIGHTS Industrial segment operating profit -8%, -1% organicfor 4Q; 7% organic for 2015 Industrial segment organic revenues -1% for 4Q, 3% for 2015 GE CFOA for 2015 16.4 billion, 8% GE Digital 2015 revenue 5.0 billion, 22% 5.4 billion Appliances sale to Haier announced,expect to close mid-year (subject to customary closingconditions); 0.20 per share gain Alstom EPS impact of 0.00GE CAPITAL PORTFOLIO UPDATE Signed 157 billion of dispositions in 2015; 104 billionclosed, ahead of plan Verticals performing well, EPS of 0.04 for 4Q; 0.17 for 2015 4.3 billion dividend to parent in 2015; on track for 18 billion in 2016 Completed Synchrony share exchange in November;reduced share count by 671 million shares On track to submit application for SIFI de-designationin 1Q’16“GE executed well in a slow-growth environment.For 2015, we accomplished all of the goals weoutlined for investors. We recognize that the firstfew weeks of 2016 have been especially volatile.However, our orders in the fourth quartergrew 1% organically and our backlog grewto 315 billion with Alstom. We believe in thestrength of our business model and that there isenough growth out there to deliver in 2016.”Jeff ImmeltChairman and CEOINDUSTRIAL OPERATING EPS 0.47, 27%INDUSTRIAL PERFORMANCE4Q 2015REPORTEDOrdersSegment RevenuesSegment Op. ProfitTotal Industrial Profit**V% ORGANIC V% 32.5B 31.4B 5.5B 5.1B 3%-1%-8%-6% 1%-1%-1% 3% 105.9B 108.8B 18.0B 15.9B-5%-1% 1% 3%-3% 3% 7% 10%FULL-YEAR 2015OrdersSegment RevenuesSegment Op. ProfitTotal Industrial Profit**OPERATING PERFORMANCEINDUSTRIAL OPERATING VERTICALS EPSOPERATING EPS 0.52 0.41 0.04 0.39 0.04 0.31 27% 0.37 0.474Q’144Q’15Verticals EPS-21%4Q’144Q’15Industrial operating EPSINDUSTRIAL MARGINS*/**17.5% 18.3%INDUSTRIAL CASHGENERATION (TY CFOA) 12.2B 12.1B 80 bps-1%4Q’144Q’1520142015*Results excluding acquired Alstom businesses**Results excluding gains & restructuringGE 4Q 2015 EARNINGSJANUARY 22, 2016
2INDUSTRIAL DEAL HIGHLIGHTSTransportation: Largest-ever deal in India; 2.5 billion for 1,000 locomotives and servicesPower: 12 HA turbine orders (5 in U.S., 4 inPakistan, 3 in Asia), backlog at 33, with anadditional 49 technical selectionsRenewables: 400 million Alstom hydroelectricdeal for Three Gorges in ChinaPower: 1 billion contract for Saudi ElectricCompany combined-cycle power plant technologyOil & Gas: 610 million services win with CheniereHealthcare: Orders (ex-FX) in Life Sciences 8%,with Bioprocessing 16%Aviation: 17 billion in engine and services winsat Dubai airshow; GE to power Textron Aviation’snewest single-engine turboprop planeINDUSTRIAL OPERATING PERFORMANCEBACKLOG 266BORDERS 315B 31.5B 32.5B 89 18.4 18.7 71 18% 3% 195 226 13.1 OTAL INDUSTRIAL PROFIT** 5.4B 5.1B-6%4Q’144Q’15*Results excluding acquired Alstom businesses**Results excluding gains and restructuringEquipment28.8% 110 bps4Q’144Q GE CAPITAL HIGHLIGHTSGE CAPITAL EARNINGS WALK4Q’15VerticalsRun-off/HQ 438MM (2,053)MMContinuing operationsDiscontinued operations (1,615)MM 3,722MMNet earnings 2,107MMServicesSEGMENT GROSS MARGINS*27.7%GE STORE HIGHLIGHTSPredix: Launch of GE Health Cloud to connect500,000 imaging devicesPredix: Signed 15 Predix customers to Digital PowerPlant, software-related contracts of 100 millionGE Alstom: Largest French onshore wind deal inhistory (120 MW)GE Alstom: 3 combined-cycle plants in Pakistan,utilizing Alstom steam turbine technologyGlobal scale: Indonesia Power & Transportationdeals: 4 projects valued at more than 1 billionGRC: Researchers begin using 3-D printing andPower technology to design water desalinationtechniques4Q’15ENI (EX. LIQUIDITY)AS ORIGINALLY REPORTEDDIVIDENDTO PARENTGE CAPITAL TIER 1COMMON RATIO² 363B-77% 4.3B 14.5%20154Q’15 82B¹4Q’144Q’15¹ 167 billion including discontinued operations²Basel 3 Tier 1 Common ratio estimated based on U.S. standardized transitional basis“We are reaffirming the goals we have laid out for 2016: operating EPS of 1.45–1.55, 2–4% organic growth,core margin expansion, cash generation of 30–32 billion, and 26 billion returned to investors. We havemoved quickly to solidify our lead in the Industrial Internet with the formation of GE Digital, to drive ourdigital future with software solutions from across our businesses. In a time of uncertain global conditions,we have the unique ability to invest through cycles and use the diversity of our portfolio to our advantage. “Jeff ImmeltChairman and CEOGE 4Q 2015 EARNINGSJANUARY 22, 2016
3FOURTH-QUARTER 2015 HIGHLIGHTSFULL-YEAR 2015 HIGHLIGHTSREVENUESREVENUESREVENUESINDUSTRIAL SALESGE CAPITAL 33.9B 30.6B 2.6BINDUSTRIAL SEGMENTOP. PROFIT 5.5B 3.0BPERCENTAGE CHANGE-8% 5.1BEPS 0.31EPS 0.52GAAP EARNINGS FROM CONTINUING OPERATIONS(ATTRIBUTABLE TO GE)EARNINGS 2.6BEPS 0.26GAAP NET EARNINGS (ATTRIBUTABLE TO GE)EARNINGS 6.3BGE CAPITAL 117.4B 106.2B 10.8BOP. PROFIT 18.0BPERCENTAGE CHANGE 1%OPERATING EARNINGSINDUSTRIAL OPERATING VERTICALS EARNINGSEARNINGSINDUSTRIAL SALESINDUSTRIAL SEGMENTOPERATING EARNINGSEARNINGSREVENUESEPS 0.64Fourth-quarter resultswebcast at 8:30 a.m. ET todaywww.ge.com/investorRelated charts are now postedon our website for your review prior to the call.EARNINGS 3.5BEPS 0.35INDUSTRIAL OPERATING VERTICALS EARNINGSEARNINGS 13.1BEPS 1.31GAAP EARNINGS FROM CONTINUING OPERATIONS(ATTRIBUTABLE TO GE)EARNINGS 1.7BEPS 0.17GAAP NET EARNINGS (ATTRIBUTABLE TO GE)EARNINGS (6.1)BEPS (0.61)In this document, we sometimes use information derived from consolidatedfinancial data but not presented in our financial statements prepared inaccordance with U.S. generally accepted accounting principles (GAAP). Certainof these data are considered “non-GAAP financial measures” under the U.S.Securities and Exchange Commission rules. These non-GAAP financial measuressupplement our GAAP disclosures and should not be considered an alternativeto the GAAP measure. We have referred to: Industrial operating earnings and EPS and GE Capital operating earnings (loss)and EPS GE Industrial operating Verticals EPS GE Industrial Verticals revenues Industrial segment operating profit and operating margin (excluding Alstom) Industrial operating profit and operating margin (excluding Alstom) Segment gross margin (excluding Alstom) Industrial segment organic revenue growth Industrial organic operating profit growth Industrial cash flows from operating activities (Industrial CFOA) Capital ending net investment (ENI), excluding liquidity GE Capital Tier 1 Common ratio estimateThe reasons we use these non-GAAP financial measures and the reconciliationto their most directly comparable GAAP financial measure are included inthe accompanying tables, which include information integral to assessingthe Company’s financial position, operating performance and cash flow. Fora reconciliation of non-GAAP measures presented in this document, see theaccompanying supplemental information posted to the investor relations sectionof our website at www.ge.com.NOTE: Amounts reported in billions in graphs within this release are computedbased on the amounts in millions. As a result, the sum of the componentsreported in billions may not equal the total amount reported in billions due torounding. Certain columns and rows within the tables may not add due to the useof rounded numbers. Percentages presented are calculated from the underlyingnumbers in millions.GE 4Q 2015 EARNINGSJANUARY 22, 2016
4GE’s Investor Relations website at www.ge.com/investor and our corporate blogat www.gereports.com, as well as GE’s Facebook page and Twitter accounts,including @GE Reports, contain a significant amount of information about GE, includingfinancial and other information for investors. GE encourages investors to visit thesewebsites from time to time, as information is updated and new information is posted.Caution Concerning Forward-Looking Statements:This document contains “forward-looking statements” — that is, statements related to future events that by their nature address matters thatare, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different thanthose expressed in our forward-looking statements, visit ution-concerning-forwardlooking-statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update ourforward-looking statements. This document also includes certain forward-looking projected financial information that is based on currentestimates and forecasts. Actual results could differ materially.General Electric Capital Corporation (GECC) has been merged into GE and our financial services business is now operated by GE Capital GlobalHoldings LLC (GECGH). In this document, we refer to GECC and GECGH as “GE Capital.” We refer to the industrial businesses of the Companyincluding GE Capital on an equity basis as “GE.” “GE (ex-GE Capital)” and/or “Industrial” refer to GE excluding GE Capital. Our financial servicessegment previously referred to as GE Capital is now referred to as Capital.Investor Contact:Matt Cribbins, 203.373.2424matthewg.cribbins@ge.comMedia Contact:Seth Martin, 203.572.3567seth.martin@ge.comGE 4Q 2015 EARNINGSJANUARY 22, 2016
5GENERAL ELECTRIC COMPANYCONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)Three months ended December 312015Consolidated2014V%2015GE(a)Revenues and other incomeSales of goods and services 30,543 30,921(1)% 30,614 Other income1,135(15)1,143GE Capital earnings from continuing operations(1,465)GE Capital revenues from services2,2142,506Total revenues and other income33,89233,4121%30,292Costs and expensesCost of sales23,58423,65923,058Interest and other financial charges1,235646463Selling, general and administrative expenses4,7724,2003,878Investment contracts, insurance losses andinsurance annuity benefits663603Other costs and expenses1,735425Total costs and expenses31,98929,5348%27,399Earnings (loss) from continuing operationsbefore income taxes1,9033,878(51)%2,892Benefit (provision) for income taxes742(188)(204)Earnings (loss) from continuing operations2,6453,690(28)%2,688Earnings (loss) from discontinuedoperations, net of taxes3,7581,6493,716Net earnings6,4035,33920%6,404Less net earnings (loss) attributable tononcontrolling interests103187121Net earnings attributableto the Company6,3015,15222%6,283Preferred stock dividends declared(18)Net earnings attributable toGE common shareowners 6,283 5,15222% 6,283 Amounts attributable to GE commonshareowners:Earnings (loss) from continuing operations 2,645 3,690(28)% 2,688 Less net earnings (loss) attributableto noncontrolling interests, continuing operations60101121Earnings (loss) from continuing operationsattributable to the Company2,5853,589(28)%2,567GE Capital preferred stock dividends declared(18)Earnings (loss) from continuing operationsattributable to GE common shareowners2,5673,589(28)%2,567Earnings (loss) from discontinuedoperations, net of taxes3,7581,6493,716Less net earnings (loss) attributable tononcontrolling interests, discontinued operations4386Net earnings attributable to GEcommon shareowners 6,283 5,15222% 6,283 Per-share amounts - earnings fromcontinuing operationsDiluted earnings per share 0.26 0.35(26)%Basic earnings per share 0.26 0.36(28)%Per-share amounts - net earningsDiluted earnings per share 0.64 0.5125 %Basic earnings per share 0.64 0.5125 %Total average equivalent sharesDiluted earnings9,82110,127(3)%Basic earnings9,74510,050(3)%Dividends declared per common share 0.23 0.23-%Amounts attributable to GEcommon shareowners:Earnings from continuing operations 2,567 3,589(28)%Adjustment (net of tax): non-operatingpension costs447343 3,014 3,932(23)%Operating earnings (non-GAAP measure)Operating earnings - dilutedearnings per share (non-GAAP measure) 0.31 0.39(21)%(a) Refers to the Industrial businesses of the Company including GE Capital on an equity basis.2014V%31,0461734831,412Financial Services (GE Capital)20152014V%(1)% (4)%15 152-22%2,275(169)1,912(161)19%5,15222% 2,107 1,75120%(27)% (1,508) ,589(28)%(1,615)187U1,5633,7641,650-43865,15222% 2,107 1,75120%Amounts may not add due to rounding.Dollar amounts and share amounts in millions; per-share amounts in dollars. Supplemental data are shown for “GE” and “GE Capital.” Transactionsbetween GE and GE Capital have been eliminated from the “Consolidated” columns. See Note 1 to the 2014 consolidated financial statements atwww.ge.com/ar2014 and our Form 8-K filed on August 7, 2015 for further information about consolidation matters.GE 4Q 2015 EARNINGSJANUARY 22, 2016
6GENERAL ELECTRIC COMPANYCONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)Twelve months ended December 31Revenues and other incomeSales of goods and servicesOther incomeGE Capital earnings (loss) from continuingGE Capital revenues from servicesTotal revenues and other incomeCosts and expensesCost of salesInterest and other financial chargesSelling, general and administrative expensesInvestment contracts, insurance losses andinsurance annuity benefitsOther costs and expensesTotal costs and expensesEarnings (loss) from continuing operationsbefore income taxesBenefit (provision) for income taxesEarnings (loss) from continuing operationsEarnings (loss) from discontinuedoperations, net of taxesNet earnings (loss)Less net earnings (loss) attributable tononcontrolling interestsNet earnings (loss) attributable tothe CompanyPreferred stock dividends declaredNet earnings (loss) attributable toGE common shareownersAmounts attributable to GE commonshareowners:Earnings (loss) from continuing operationsLess net earnings (loss) attributableto noncontrolling interests, continuing operationsEarnings (loss) from continuing operationsattributable to the CompanyGE Capital preferred stock dividends declaredEarnings (loss) from continuing operationsattributable to GE common shareownersEarnings (loss) from discontinuedoperations, net of taxesLess net earnings (loss) attributable tononcontrolling interests, discontinued operationsNet earnings (loss) attributable to GEcommon shareownersPer-share amounts - earnings (loss) fromcontinuing operationsDiluted earnings (loss) per shareBasic earnings (loss) per sharePer-share amounts - net earnings (loss)Diluted earnings (loss) per shareBasic earnings (loss) per shareTotal average equivalent sharesDiluted earningsBasic earningsDividends declared per common shareConsolidated20142015 105,809 a)2014 106,206 107,3082,165707(7,672)1,532100,700109,546Financial Services (GE Capital)20152014V%V%(1)% (8)%79 28315,233-U (6,145) 15,233U 1,700 35)%(5)%27%UUU16215,233-U(15,450)(330)7,234(322)U (6,145) 15,233U (15,780) 6,912U 1,746 1,537U(45)839,485(82)%(50)(7,718) ,535312 2015157(6,145) 15,233U 0.17 0.17 0.940.95(82)%(82)% (0.61) (0.62) 1.501.51UU10,01610,1239,94410,045 0.92 0.89 (6,145) 15,233312U (15,780) 1576,912U(1)%(1)%3%Amounts attributable to GEcommon shareowners:Earnings from continuing operations 1,663 9,535 (83)%Adjustment (net of tax): non-operatingpension costs1,7971,378Operating earnings (non-GAAP measure) 3,460 10,913 (68)%Operating earnings - dilutedearnings per share (non-GAAP measure) 0.35 1.08 (68)%(a) Refers to the Industrial businesses of the Company including GE Capital on an equity basis.Amounts may not add due to rounding.Dollar amounts and share amounts in millions; per-share amounts in dollars. Supplemental data are shown for “GE” and “GE Capital.” Transactionsbetween GE and GE Capital have been eliminated from the “Consolidated” columns. See Note 1 to the 2014 consolidated financial statements atwww.ge.com/ar2014 and our Form 8-K filed on August 7, 2015 for further information about consolidation matters.GE 4Q 2015 EARNINGSJANUARY 22, 2016
7GENERAL ELECTRIC COMPANYSUMMARY OF OPERATING SEGMENTS (UNAUDITED)Three months ended December 3120152014(Dollars in millions)Revenues(a)PowerRenewable EnergyOil & GasEnergy es & LightingTotal industrial segment revenuesCapitalTotal segment revenuesCorporate items and eliminations(a)Consolidated revenues and other incomefrom continuing operationsSegment profit (loss)(a)PowerRenewable EnergyOil & GasEnergy es & LightingTotal industrial segment profitCapitalTotal segment profit (loss)Corporate items and eliminations(a)GE interest and other financial chargesGE provision for income taxesEarnings from continuing operationsattributable to GE common shareownersEarnings (loss) from discontinued operations,net of taxesLess net earnings attributable tononcontrolling interests, discontinued operationsEarnings (loss) from discontinued operations,net of tax and noncontrolling interestConsolidated net earnings (loss)attributable to GE common shareowners(a)V% 533,937(46) 934,691(1,279) 33,892 33,412 63)(204) (437)(492)(10)% (79)%(19)%(71)%12 %(8)%8%28 386(50)%3,7161,563F 6,283 5,1523% (16)%(16)%20 %5%(3)%2%(1)%(1)%(11)%(2)%(96)%1% 22 % Twelve months ended December ,751108,79610,801119,597(2,211) 711,320121,047(3,863)117,386 983)9,983(5,108)(1,706)(1,506) 5)(1,579)(1,634)-%(38)%(12)%10 %11 %(5)%13 %56 799 %5,698U15,233U312(7,807)(6,145) Segment revenues includes both revenues and other income related to the segment. Segment profit excludes results reported as discontinuedoperations, the portion of earnings attributable to noncontrolling interests of consolidated subsidiaries, and accounting changes. Segmentprofit excludes or includes interest and other financial charges and income taxes according to how a particular segment’s management ismeasured – excluded in determining segment profit, which we sometimes refer to as “operating profit,” f
GE 4Q 2015 EARNINGS JANUARY 22, 2016 GE Earnings Press Release 4Q15 043125 GE_PR15_4Q15_v5 01/22/16 page 2 2 INDUSTRIAL DEAL HIGHLIGHTS Transportation: Largest-ever deal
– Payout Ratio p: dividend/earnings DPS/EPS – Retained Earnings: (earnings - dividends) – Plowback Ratio b: retained earnings/total earnings – Book Value BV: cumulative retained earnings – Return on Book Equity ROE: earnings/BV Using these concepts, different valuation formulas may be derived
_Payout ratio: dividend/earnings DPS/EPS p _Retained earnings: (earnings - dividends) _Plowback ratio: retained earnings/total earnings b _Book value (BV): cumulative retained earnings _Return on book equity (ROE): earnings/BV 16 EPS and ROE
financial reporting in terms of quality of earnings, that is, the degree to which reported earnings reflect economic reality. Penman (2003) submitted that high quality earnings are the earnings that contain a good indicator for future earnings, with regard to the current performance of the company. In other words, quality of earnings currently .
Basic earnings per share 9–29 Earnings 12–18 Shares 19–29 Diluted earnings per share 30–63 Earnings 33–35 Shares 36–40 Dilutive potential ordinary shares 41–63 Options, warrants and their equivalents 45–48 Convertible instruments 49–51
City of Norwalk, Connecticut 2018 EMPLOYEE EARNINGS REPORT As of December 27, 2018 FIRST NAME LAST NAME EARNINGS JOB TITLE DEPARTMENT Page 1 of 60. City of Norwalk, Connecticut 2018 EMPLOYEE EARNINGS REPORT As of December 27, 2018 FIRST NAME LAST NAME EARNINGS JOB TITLE DEPARTMENT
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to respond to the Request for Earnings Information letter and Earnings Verification form. TWC uses earnings information to determine whether a claimant's unemployment benefits are paid correctly. When the earnings amounts provided by the claimant and employer differ, the claimant's unemployment benefits may be adjusted. 2
subjected to review, management was obsessed with the selection of a realistic estimate of L&LAE reserves and therefore the quality of reported pretax statutory earnings have held up. The earnings reported in the prior periods have withstood management’s re-evaluation of the initial L&LAE reserve estimate utilized by management.
