Ge Monthly Update February2009


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Ge Monthly Update February2009

  1. 1. February 2009 Investor Update February 2, 2009 To the Investment Community, GE announced fourth-quarter 2008 earnings on January 23rd including: 3 4Q earnings per share (EPS) of $.37 before preferred dividend (including charges), or $.36 attributable to common shareowners (including charges); 4Q earnings of $3.9 billion 3 Full-year (FY) EPS of $1.79 before preferred dividend, or $1.78 attributable to common Business highlights shareowners; FY earnings of $18.1 billion 3 Infrastructure and Media earnings up 3% in 4Q and 10% for the year GE Technology page 2 3 Capital Finance earned $1 billion in 4Q and $8.6 billion for the year Infrastructure 3 4Q revenues of $46.2 billion, impacted by stronger U.S. dollar and business exits; FY GE Energy page 3 revenues of $183 billion, up 6%; FY Industrial organic revenue growth of 8%; global Infrastructure revenue growth of 13% GE Capital page 4 3 Recorded $1.5 billion of restructuring, including increased reserves in current NBC Universal page 5 environment, versus guidance of up to $1.4 billion 3 Through January 23rd, achieved 64% of 2009 long-term debt goal; commercial paper Film and DVD release page 5 balance of $72 billion at year-end, a decrease of $29 billion year-over-year schedule 3 Infrastructure 4Q orders declined 6%; total equipment and services backlog grew to Citizenship and page 6 $172 billion, up 9% ecomaginationsm 3 We run the company to have a Triple-A credit rating, and we have significantly Upcoming investor page 6 strengthened our liquidity position events 3 We are committed to our plan for $1.24 per share dividend for 2009; we believe that the GE dividend provides our investors with a solid return in this uncertain time Contact For details please visit: Trevor A. Schauenberg Moody’s informed us on January 27th that it placed General Electric Company’s and General Vice President Electric Capital Corporation’s (GECC) long-term Aaa ratings on review for possible downgrade. Corporate Investor Communications This review does not affect GE’s and GECC’s short-term funding ratings of Prime-1, which 3135 Easton Turnpike were affirmed by Moody’s. This action is a follow-up to Moody’s December review of GE’s Fairfield, CT 06828 2009 operating plan. Our objective is to maintain our Triple-A rating but we do not anticipate USA any major operational impacts should that change. Full Text Here T 203 373 2468 On January 26th GE paid the Q1 2009 dividend of $.31 per share as approved by the board F 203 373 2071 on December 16th, 2008. For presentations, news and other helpful information please visit our investor web site at Regards,
  2. 2. GE Technology Infrastructure • GE Healthcare announced the launch of India’s first affordable true digital flat panel X-ray system, Tejas DR-F. The system will usher in a new standard of safety and affordability to radiology practices in India. Despite X-ray being the most widely used diagnostic imaging tool in India, it is the most under-developed imaging specialty. Tejas DR-F can bring signifi- cant operational cost efficiency to the estimated $30 million market with a cost 40% less than imported digital X-ray. Full Text Here • GE Transportation announced that it has been awarded a $15.5 million contract from the Golden Gate Bridge Highway and Transportation District to provide a new advanced communications and information system. The new system is designed to improve commu- nications for the district’s three operating divisions: Golden Gate Bridge, Golden Gate Ferry and Golden Gate Transit, supporting improvements for security, safety and operational reliability. Full Text Here • GE Drivetrain Technologies, a unit of GE Transportation, and A-Power Energy Generation Systems announced that they have signed two letters of intent, the first for GE to supply A-Power with 2.7 megawatt wind turbine gearboxes and a second to establish a Joint Venture partnership for a wind turbine gearbox assembly plant. Under the agreement GE will supply more than 900 2.7 MW gearboxes beginning in 2010. Full Text Here • GE Security, a unit of GE Enterprise Solutions, announced that more than 100 CTX 9400 DSiTM in-line baggage explosive detection units and upgrades have been sold to major airports around the world. Still in its first year of availability, CTX 9400 represents the first in a series of enhancements scheduled as part of GE Security’s product plan for in-line baggage explosives detection systems. Full Text Here • GE Digital Energy, a unit of GE Enterprise Solutions, announced that its Uninterruptible Power Supply technology will help CBS4 and ABC7 stations in Denver alleviate concern over power outages. Ensuring power stability and best-in-class back-up power technology was a top priority for CBS4 and ABC7 when they constructed the new consolidated digital television tower and building on Lookout Mountain in suburban Denver, and they chose the strength and reputation of GE’s UPS products to fulfill that need. Full Text Here • GE Aviation will provide integrated systems and structures for the eight P-8I long-range maritime reconnaissance and anti-submarine warfare aircraft Boeing is developing for the Indian Navy. The government of India recently selected Boeing to provide the aircraft to help meet its unique maritime patrol requirements. GE’s flight management system, stores management system, fuselage and wing pylon structures for the P-8I are designed for growth, and provide outstanding capabilities tailored to India’s unique requirements. Full Text Here • GE Aviation has signed an exclusive distributor agreement with Aviall Services, Inc., a unit of Aviall, Inc., a wholly-owned subsidiary of The Boeing Company, that covers unique spare parts of the widely-popular GE CF34-3 aircraft engines for the remaining life of the engine. Under the agreement, Aviall will become responsible for forecasting, ordering, and deliv- ering all genuine Original Equipment Manufacturer replacement parts that are unique to CF34-3 engines. Full Text Here February 2009 Investor Update 2
  3. 3. GE Energy Infrastructure • GE Energy announced that Edipower, a leading Italian generation company, has selected ecomaginationSM certified gas turbine emissions control tech- nology to meet regional greenhouse gas emissions standards at the compa- ny’s Sermide facility. Edipower will achieve the new NOx emissions standards for combined-cycle power plants with the help of GE’s DLN 2.6+ system. Edipower provides nearly eight percent of Italy’s energy needs, generating 7,700 megawatts (MW) of capacity annually, including 750 MW generated by renewable energy resources. Full Text Here • GE Oil & Gas announced that three key products in its technology portfolio have recently received GE ecomaginationSM certification. They are: — GE’s proven, highly reliable PGT25+ dry low emissions aeroderivative gas turbine, which was designed specifically for oil and gas applications — GE’s PGT25+G4 DLE aeroderivative gas turbine. It is the growth version of the PGT25+ and will dramatically increase the power of facilities including pipeline compressor stations, onshore/offshore production sites and liquefaction sites — The ORegen (a trademark of Nuovo Pignone, SpA.) waste heat recovery system, which can produce additional power without any further emis- sions and no water use Full Text Here • GE Energy and Mitsubishi Heavy Industries, Ltd., two manufacturers of power generation equipment, have signed a memorandum of understanding to co-develop the “next generation” steam turbine for use in gas turbine combined-cycle power plants. Development of a new advanced steam turbine is viewed by both companies as an important step in meeting customer requirements for increased combined-cycle efficiency and performance worldwide. Full Text Here February 2009 Investor Update 3
  4. 4. GE Capital Finance • GE Capital has completed the acquisition of Interbanca S.p.A., a leading Italian corporate bank, from Banco Santander. Within the transaction, GE Capital also completed the sale of former GE Money businesses in Germany, Austria, Finland, its credit card and auto businesses in the U.K., and its credit card business in Ireland to Santander. Interbanca is a well-established corporate finance bank with around €6 billion in assets, over 300 employees and 11 branches throughout Italy. With this acquisition Interbanca becomes GE’s growth engine for financial services operations in Italy. Full Text Here • GE Commercial Aviation Services announced that its engine leasing unit signed 120 new engine lease agreements in 2008, its 10th year of operation. The unit has grown a portfolio of 350 owned and managed engines since beginning with a team of four people as a trial venture within GE Aviation in 1998. Full Text Here • TPI Composites, Inc., a leading supplier of high-technology wind turbine blades to Mitsubishi Power Systems and GE, announced it has received $20 million from GE’s investment arm, Landmark Growth Capital Partners, NGP Energy Technology Partners and Angeleno Group to support its growth. Full Text Here • GE Energy Financial Services, as co-owner, and Renewable Energy Systems Americas, a national leader in the development and construction of wind power projects, announced completion and commencement of commercial operations of its Hackberry Wind Project, a $350 million wind farm in Shack- elford County, Texas. Power produced by Hackberry will be purchased by the City of Austin, moving them closer to their goal of securing 30% of the city’s electricity from renewable sources by 2020. Full Text Here • Healthcare Financial Services served as lead arranger and administrative agent on a $25 million senior secured credit facility to Akorn, Inc., a leading specialty pharmaceutical company focused on developing, manufacturing and marketing pharmaceutical products. Full Text Here • GE Capital Solutions is expanding its award winning telematics solution to Canada. The offering, which was rolled out in the United States in 2006, gives companies with fleets of vehicles the critical line of sight into how their assets are performing in real time. The integrated solution not only allows customers to see in real time where their assets are; it offers clear strategies for improving performance and efficiency. Full Text Here • GE Money won the “Best Advertising Campaign” at the Retail Banking Awards 2009 by Asian Banking & Finance Magazine’s for its innovative James personal loan. The award follows the launch of the new and enhanced James personal loan in March 2008 when, in response to consumers desire for more flexible personal loans, GE responded with a first-in-market product that empowers customers to make their own choices. Full Text Here February 2009 Investor Update 4
  5. 5. NBC Universal • Universal Pictures recorded its biggest year ever for the second year in a row with global theatrical grosses totaling $2.8 billion for 2008. Universal’s domestic box-office tally of over $1.1 billion outpaced the record it previously set in 2007. Internationally, Universal shattered last year’s box-office mark of $1.0 billion, with a 2008 total of $1.7 billion, for an incredible 66 percent improvement. Full Text Here • Universal Pictures International was the number one studio in the United Kingdom in 2008 in only its second year of operation. • Mamma Mia! The Movie became the biggest selling DVD of all time in the U.K., crossing the five million sell-out threshold, meaning that one in four U.K. households has a DVD copy of the film. • Universal Pictures and Focus Features International (FFI) made a groundbreaking deal with a leading Italian production company, Cattleya, in which Universal will acquire a minority share in Cattleya and FFI will partner with the company to develop and distribute Cattleya films. • NBC broadcast the Super Bowl on Sunday February 1st for the first time in 11 years. Due to NBC’s sales strategy of establishing pricing early and aggressively selling during the upfront period, the network realized a similar sales pace to recent years despite the economic downturn. NBC’s 30 Rock was named Best Television Series - Comedy or Musical at the 66th Annual • Golden Globe Awards, with stars Tina Fey and Alec Baldwin winning for Best Actress and Best Actor in a Television Series - Comedy or Musical. Ratings highlights: • NBC’s primetime lineup is running within 0.4 of a rating point of first place in adults 18-49 for the 2008-09 season through 18 weeks. USA’s hit originals Monk and Psych launched with all new episodes as the No. 1 and No. 2 • shows in primetime, making USA No. 1 on their premier night. • was named the number one news site for December 2008 by Nielsen Online, marking the site’s seventh consecutive month as America’s top news site. Upcoming films The Last House on the Left (Sara Paxton, Monica Potter) • March 13: Duplicity (Julia Roberts, Clive Owen) • March 20: • April 3: (Vin Diesel, Paul Walker) Upcoming DVD releases Changeling (Angelina Jolie, John Malkovich) • February 17: Flash of Genius (Greg Kinnear, Lauren Graham) • February 17: Role Models (Paul Rudd, Seann William Scott) • March 10: February 2009 Investor Update 5
  6. 6. Citizenship and ecomaginationsm • GE and Masdar, Abu Dhabi’s investment in the development and commercialization of innovative technologies in renewable, alterna- tive and sustainable energies as well as sustainable design, announced that GE will be an anchor partner in Masdar City. The two companies outlined plans to house a new ecomaginationSM center, focused on sustainable business solutions and to form a broader R&D relationship that will support the development and deployment of new and innova- tive technologies. This center is part of a multi-faceted strategic part- nership signed by Mubadala and GE in July 2008. Full Text Here • GE Capital Solutions Fleet Services was named a recipient of the Best Workplaces for CommutersSM designation at the Commuter Choice Awards and was recognized as the only Minnesota company to receive national status. The Commuter Choice Awards recognize organizations and individuals for their creative solutions in promoting alternatives to driving alone to work. Full Text Here • GE Money Indonesia won the “Best CSR Program” at the Retail Banking Awards by Asian Banking & Finance Magazine. GE Money’s effort to empower under-privileged women with financial knowledge and skills in Indonesia through its Bijak Dana Perempuan program was also recog- nized with the Certificate of Merit Award from Global CSR Awards. Full Text Here. Upcoming investor events (subject to changes) • February 10:* Keith Sherin, GE Vice Chairman and CFO, at the Barclay’s Industrials Conference. • February 10:* John Rice, GE Vice Chairman and President & CEO GE Technology Infrastructure, at the CLSA Asia Investors Forum. March 11: Steve Fludder, Vice President, ecomaginationSM, at the Merrill Lynch • Cleantech Leaders Conference. • Please visit our investor website for other events as they are scheduled for 2009 *Meeting will be webcast. Webcast replays are retained on our web site for 14 days. Podcasts are also available by accessing the following link: February 2009 Investor Update 6