4th Quarter & Final Results

General Electric Company 20 January 2000 GE Reports Record Results 4Q EPS $.93, Up 16% - 1999 EPS $3.22, Up 15% Earnings Break New Thresholds - 4Q at $3.09 Billion, 1999 at $10.7 Billion Momentum Strong for 2000 Fairfield, Conn. - January 20, 2000 - GE achieved record revenues, earnings and cash generation in 1999, Chairman John F. Welch reported today. 'This year's double-digit increases again demonstrate the benefits of the Company's continuing emphasis on globalization, growth in services, Six Sigma quality and e-business,' Welch said. Highlights of the Company's preliminary 1999 results include: * Earnings per share increased 15% to $3.22, up from last year's $2.80, and earnings increased 15% to a record $10.7 billion. * Revenues rose 11% to a record $112 billion, reflecting continued growth from global activities and product services. * GE's total year operating margin was a record 17.8% of sales, up from last year's 16.7%, excluding unusual 1999 charges of $326 million in GE's industrial businesses. The growth in margin reflects the increasing benefits from GE's focus on product services and Six Sigma quality initiatives. * GE Capital Services' earnings for 1999 were $4.44 billion, 17% over last year's $3.80 billion. These record results reflect the globalization and the diversity of its 28 businesses with strong double-digit increases in its Specialized Financing, Consumer Services and Mid-Market Financing segments. * Cash generated from GE's operating activities for 1999 was a record $11.7 billion, up 17% from last year's $10.0 billion. As part of the $22 billion share repurchase program, GE has purchased a cumulative $15.4 billion - 304 million share - since December 1994. * Fourth-quarter earnings per share increased 16% to $.93, up from last year's $.80, and earnings increased 16% to $3.09 billion. Both earnings per share and earnings were records for the quarter. Revenues in the fourth quarter were a record $32.9 billion, 15% higher than last year's $28.6 billion. * During the fourth quarter, GE recorded an after tax gain of $252 million in connection with NBC's contribution of certain internet assets into NBCi.com, a publicly traded internet company. At its December meeting, the GE Board of Directors voted to split GE's stock 3 for 1, subject to shareowner approval on April 26, 2000, of an increase in authorized shares, and increased the Company's quarterly dividend 17% to $.41 per share, the 24th consecutive year of increased dividends. GE's $17 billion share repurchase program was increased to $22 billion. Highlights of 1999 earnings and other recent activities include: Power Systems earnings grew 30% in 1999 as demand for new GE power generation continued at record levels. Fourth quarter shipments were up 240% and total year orders reached $14 billion, 33% above last year's record. Demand for smaller gas turbines at S&S Energy Products hit record levels with orders reaching $1.6 billion, up 255% for the year. Power Systems closed 40 new long-term service agreements in the quarter, bringing the 1999 total to 76 new contracts valued at more than $7 billion. During the fourth quarter, Power Systems completed the acquisition of Glegg Water Technologies, announced a definitive agreement to acquire selected assets of Kvaerner Thermal, and launched a tender offer for Showpower, a leading provider of temporary power. NBC delivered a strong double-digit increase in earnings in 1999, benefiting from a strong advertising market, and launched successful hits including West Wing and Law and Order SVU. CNBC turned in a strong fourth quarter performance with CNBC Business Day exceeding CNN in viewership during November and December. Sports programming was strengthened by securing broadcast rights for NASCAR and horse racing's Triple Crown. NBC completed its announced deal to combine certain of its internet assets with XOOM.com to create NBCi.com. and expanded its internet equity portfolio with nine new investments. GE Capital had another strong, broad-based earnings performance in 1999 and positioned itself for continued growth through acquisitions, new products and businesses, and e-business. Global Consumer Finance, Commercial Finance, Commercial Equipment Finance, Mortgage Insurance, Vendor Financial Services, GE Financial Assurance, and GE Equity Capital all grew net income in excess of 25% for the year. In the fourth quarter, GECS acquired the JC Penney private label credit card business ($4 billion in assets), announced plans to assume the policies and related assets of Toho Insurance of Japan (1.6 million new policyholders), and purchased Lisca AG, a Swiss provider of equipment financing, consumer credit and auto leasing. It also announced it will administer and finance the Wal-Mart credit card, signing more than one million customers in just four months. GE Aircraft Engines delivered strong double-digit earnings growth in 1999 as it continued to win more than 50% of the world's engine orders for passenger jets and grow its service business. Significant wins in the quarter were recorded with Lufthansa and Air France with a value of more than $200 million. The growth in regional jets continued with GE recording engine orders in excess in $1 billion for 1999. GE won an order in excess of $100 million for fighter engines to support the U.S. Air Force and Egyptian air forces. GE Engine Services entered into multi-year service agreements valued in excess of $2 billion (increasing the multi-year service commitments to greater than $15 billion), expanded its global breadth with the opening of new On-Wing Support operations in the U.S. and Asia, and entered into service ventures in Mexico and Eastern Europe. GE Transportation had strong double-digit earnings growth in 1999 on record locomotive deliveries and strong service growth. In the quarter, GE Locomotive signed an agreement with CSX Transportation to manage locomotive maintenance service for more than 1,450 GE units in the CSX fleet. Its GE- Harris joint venture also completed a contract with CSX for the Pinpoint locomotive tracking system, making CSX the first railroad in North America to equip its entire fleet with a remote tracking system. GE Medical Systems earnings grew 25% in 1999 with strong global acceptance of its Six Sigma-designed products. In the fourth quarter, Medical Systems introduced a powerful new high-field open MRI system, the GE Sigma Open Speed, three times faster than any other open MRI system and with better image quality than more powerful MRI systems. The U.S. Food and Drug Administration recommended marketing clearance for GE's Senographe 2000D full-field digital mammography system, the industry's first. Medical Systems completed its acquisition of OEC Medical Systems, a global leader in mobile and surgical x- ray systems, and announced plans to acquire Medicor Rontgen, a Hungarian leader in fluoroscopic x-ray systems. To enhance customer value over the internet, Medical Systems announced an agreement to acquire MECON, a global leader in healthcare data mining and benchmarking services. Mr. Welch concluded: 'We are extremely proud of the record 1999 results achieved by the collective efforts of GE's 340,000 employees around the world and are confident that GE with its strong business positions, its current order rates, and record backlog is well positioned to deliver another year of record performance to our share owners in 2000.' GE is traded on the New York Stock Exchange (NYSE: GE). GENERAL ELECTRIC COMPANY All amounts except per-share earnings are in millions of U.S. dollars. FOURTH QUARTER 1999 1998 V% Revenues $32,855 $28,637 15 Earnings $3,089 $2,671 16 Per-Share Earnings - diluted $0.93 $0.80 16 - basic $0.94 $0.82 15 TWELVE MONTHS ENDED DECEMBER 31 1999 1998 V% Revenues $111,630 $100,469 11 Earnings $10,717 $9,296 15 Per-Share Earnings - diluted $3.22 $2.80 15 - basic $3.27 $2.84 15 Segment Information FOURTH QUARTER 1999 1998 V% Revenues Aircraft Engines $2,953 $2,899 2 Appliances 1,545 1,486 4 Industrial Products and Systems 3,329 3,288 1 NBC 1,752 1,341 31 Plastics 1,895 1,735 9 Power Systems 3,578 2,789 28 Technical Products and Services 2,142 1,742 23 GE Capital Services 15,986 13,726 16 TWELVE MONTHS ENDED DECEMBER 31 1999 1998 V% Revenues Aircraft Engines $10,558 $10,294 3 Appliances 5,671 5,619 1 Industrial Products and Systems 11,555 11,222 3 NBC 5,790 5,269 10 Plastics 6,941 6,633 5 Power Systems 10,046 8,466 19 Technical Products and Services 6,863 5,323 29 GE Capital Services 55,749 48,694 14 Segment profit FOURTH QUARTER 1999 1998 V% Aircraft Engines 577 506 14 Appliances 180 202 (11) Industrial Products and Systems 671 619 8 NBC 433 373 16 Plastics 396 346 14 Power Systems 629 537 17 Technical Products and Services 447 364 23 GE Capital Services Net Earnings 1,057 900 17 Segment profit TWELVE MONTHS ENDED DECEMBER 31 1999 1998 V% Aircraft Engines 2,105 1,769 19 Appliances 655 755 (13) Industrial Products and Systems 2,095 1,880 11 NBC 1,576 1,349 17 Plastics 1,651 1,584 4 Power Systems 1,693 1,306 30 Technical Products and Services 1,359 1,109 23 GE Capital Services Net Earnings 4,443 3,796 17 GENERAL ELECTRIC COMPANY Condensed Statement of Earnings Consolidated Fourth quarter ended December 31 1999 1998 Revenues Sales of goods and services $19,333 $16,833 Earnings of GECS - - GECS revenues from services 13,120 11,622 Other income 402 182 Total revenues 32,855 28,637 Costs and expenses Cost of sales, operating and administrative expenses 21,868 18,796 Interest and other financial charges 2,891 2,814 Insurance losses and policyholder and annuity benefits 2,940 2,756 Provision for losses on financing receivables 630 562 Minority interest in net earnings of consolidated 111 80 affiliates Total costs and expenses 28,440 25,008 Earnings before income taxes 4,415 3,629 Provision for income taxes (1,326) (958) Net earnings $3,089 £2,671 GE Fourth quarter ended December 31 1999 1998 Revenues Sales of goods and services $16,655 $14,846 Earnings of GECS 1,057 900 GECS revenues from services - - Other income 418 187 Total revenues 18,130 15,933 Costs and expenses Cost of sales, operating and administrative expenses 13,876 12,200 Interest and other financial charges 215 273 Insurance losses and policyholder and annuity benefits - - Provision for losses on financing receivables - - Minority interest in net earnings of consolidated 57 36 affiliates Total costs and expenses 14,148 12,509 Earnings before income taxes 3,982 3,424 Provision for income taxes (893) (753) Net earnings $3,089 $2,671 GECS Fourth quarter ended December 31 1999 1998 Revenues Sales of goods and services $2,787 $2,049 Earnings of GECS - - GECS revenues from services 13,199 11,677 Other income - - 15,986 13,726 Total revenues Costs and expenses Cost of sales, operating and administrative expenses 8,154 6,693 Interest and other financial charges 2,718 2,566 Insurance losses and policyholder and annuity benefits 2,940 2,756 Provision for losses on financing receivables 630 562 Minority interest in net earnings of consolidated 54 44 affiliates Total costs and expenses 14,496 12,621 Earnings before income taxes 1,490 1,105 Provision for income taxes (433) (205) Net earnings $1,057 $900 Per share amounts (in dollars) Diluted earnings per share $0.93 $0.80 Basic earnings per share $0.94 $0.82 Dividends declared per share (in dollars) $0.41 $0.35 Dollar amounts in millions; per-share amounts in dollars; unaudited. Supplemental consolidating data are shown for 'GE' and 'GECS'. Transactions between GE and GECS have been eliminated from the 'consolidated' columns. See note 1 to the consolidated financial statements in the 1998 Annual Report to Share Owners for further information about consolidation matters. GENERAL ELECTRIC COMPANY Condensed Statement of Earnings Consolidated Years ended December 31 1999 1998 Revenues Sales of goods and services $64,068 $58,687 Earnings of GECS - - GECS revenues from services 46,764 41,133 Other income 798 649 Total revenues 111,630 100,469 Costs and expenses Cost of sales, operating and administrative expenses 72,969 65,757 Interest and other financial charges 10,013 9,753 Insurance losses and policyholder and annuity benefits 11,028 9,608 Provision for losses on financing receivables 1,678 1,609 Minority interest in net earnings of consolidated 365 265 affiliates Total costs and expenses 96,053 86,992 Earnings before income taxes 15,577 13,477 Provision for income taxes (4,860) (4,181) Net earnings $10,717 $9,296 GE Years ended December 31 1999 1998 Revenues Sales of goods and services $55,645 $51,546 Earnings of GECS 4,443 3,796 GECS revenues from services - - Other income 856 684 Total revenues 60,944 56,026 Costs and expenses Cost of sales, operating and administrative expenses 46,031 42,913 Interest and other financial charges 810 883 Insurance losses and policyholder and annuity benefits - - Provision for losses on financing receivables - - Minority interest in net earnings of consolidated 179 117 affiliates Total costs and expenses 47,020 43,913 Earnings before income taxes 13,924 12,113 Provision for income taxes (3,207) (2,817) Net earnings $10,717 $9,296 GECS Years ended December 31 1999 1998 Revenues Sales of goods and services $8,740 $7,374 Earnings of GECS - - GECS revenues from services 47,009 41,320 Other income - - Total revenues 55,749 48,694 Costs and expenses Cost of sales, operating and administrative expenses 27,402 23,203 Interest and other financial charges 9,359 8,966 Insurance losses and policyholder and annuity benefits 11,028 9,608 Provision for losses on financing receivables 1,678 1,609 Minority interest in net earnings of consolidated 186 148 affiliates Total costs and expenses 49,653 43,534 Earnings before income taxes 6,096 5,160 Provision for income taxes (1,653) (1,364) Net earnings $4,443 $3,796 Per share amounts (in dollars) Diluted earnings per share $3.22 $2.80 Basic earnings per share $3.27 $2.84 Dividends declared per share (in dollars) $1.46 $1.25 Dollar amounts in millions; per-share amounts in dollars; unaudited. Supplemental consolidating data are shown for 'GE' and 'GECS'. Transactions between GE and GECS have been eliminated from the 'consolidated' columns. See note 1 to the consolidated financial statements in the 1998 Annual Report to Share Owners for further information about consolidation matters.

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