Some Good News For The Market - GE

GE Reports Second Quarter 2008 EPS of $.54;Revenues of $46.9 billion, up 11%;Global Revenues of $25 billion, up 24%;Orders of $27 billion, up 8%;Infrastructure Segment Profit of $3.2 billion, up 24%

2Q 2008 Highlights (Continuing Operations)
>Earnings per share (EPS) of $.54, flat year-over-year
>Revenues of $46.9 billion, up 11%; organic revenue growth of 5%; Industrial organic revenue growth of 9%
>Financial Services earnings of $2.8 billion, up 15%
>Global revenues of $25 billion, up 24%; emerging markets revenues of $10 billion, up 20%
>Services orders of $9.5 billion, up 19%; major equipment orders of $13.7 billion, up 4%, outpacing shipments 1.3x; total orders of $26.9 billion, up 8%
>Major equipment backlog of $55 billion, up 25%; customer service agreements (CSA) backlog of $113 billion, up 17%
>Return on average total capital (ROTC) of 17.6%
>Industrial cash flow from operating activities growth of 5%
>Stock repurchase $2.5 billion YTD; $1.4 billion for second quarter
>Reaffirming 2008 full-year continuing EPS guidance of $2.20 – 2.30, up 0-5%

Second Quarter 2008 Financial Highlights:
Earnings from continuing operations were $5.4 billion, down 4% from $5.6 billion in the second quarter of 2007. EPS from continuing operations were $.54, unchanged from last year. Segment profit rose 7%, led by GE Infrastructure’s strong double-digit growth of 24% in the quarter.
Including the effects of discontinued operations, second quarter net earnings were $5.1 billion ($.51 per share) in 2008 and $5.4 billion ($.52 per share) in the second quarter of 2007.
Revenues grew 11% to $46.9 billion. GE Capital Services’ (GECS) revenues grew 11% over last year to $19.1 billion. Industrial sales were $27.8 billion, an increase of 15% from the second quarter of 2007.
Cash generated from GE operating activities in the first six months of 2008 totaled $9.3 billion, down 20% from $11.6 billion last year, reflecting a $2.7 billion decrease in GECS’ dividends due to the non-repeat of a special $2.7 billion dividend related to proceeds from the sale of Swiss Re common stock and GE Life in the first half of 2007. The Company had solid Industrial cash flow from operating activities of $7.3 billion, an increase of 5%, for the first six months of 2008.
“Our business fundamentals remain strong. We have a significant equipment backlog and growing, high margin service revenues. Our products and services help make our customers more productive in times of high energy costs. We have solid cash flow to reinvest in the businesses, pay an attractive dividend and execute a stock buyback program. We are positioned for long-term growth. For the third quarter 2008, we are forecasting EPS from continuing operations of $.50-.54, up 0-8% over comparable 2007 earnings, and reaffirming guidance of $2.20-2.30, up 0-5% for the full year,” Immelt said