GE 2005 Annual Report Download - page 41

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(41)
Industrial revenues rose 23%, or $5.7 billion, in 2004 on higher volume ($2.0 billion), primarily at
Consumer & Industrial and Plastics, the weaker U.S. dollar ($0.5 billion) and higher prices ($0.1 billion) at the
industrial businesses in the segment. Higher prices at Plastics, as demand for plastic resins increased, were partially
offset by lower prices at Consumer & Industrial. On January 1, 2004, we consolidated Penske Truck Leasing Co.,
L.P. (Penske), previously accounted for using the equity method. As a result, consolidated operating lease rentals
and other income increased by $2.6 billion and $0.6 billion, respectively, from 2003 levels. Segment profit rose
32%, or $0.4 billion in 2004, as productivity ($0.8 billion), primarily at Consumer & Industrial and Plastics, higher
volume ($0.1 billion) and higher prices ($0.1 billion) more than offset higher material and other costs ($0.8 billion),
primarily from commodities such as benzene and natural gas at Plastics. Segment profit at Equipment Services also
rose on improved operating performance ($0.2 billion). See Corporate Items and Eliminations for a discussion of
items not allocated to this segment.
HEALTHCARE revenues increased 13% to $15.2 billion in 2005 as higher volume ($2.1 billion), including $0.8
billion from the Amersham acquisition in the second quarter of 2004, and the weaker U.S. dollar ($0.1 billion) more
than offset lower prices ($0.4 billion). Operating profit of $2.7 billion was 17% higher than in 2004 as productivity
($0.5 billion) and higher volume ($0.4 billion) more than offset lower prices ($0.4 billion) and higher labor and
other costs ($0.1 billion).
Healthcare revenues increased 32% to $13.5 billion in 2004 as higher volume ($3.3 billion), primarily from
acquisitions including Amersham ($2.2 billion) and Instrumentarium ($1.0 billion), and the weaker U.S. dollar ($0.4
billion) more than offset lower prices ($0.4 billion). Operating profit of $2.3 billion in 2004 was 34% higher than in
2003 as the effects of higher volume ($0.5 billion) and productivity ($0.5 billion) more than offset the effects of
lower prices ($0.4 billion). See Corporate Items and Eliminations for a discussion of items not allocated to this
segment.
Orders received by Healthcare in 2005 were $15.6 billion, compared with $13.7 billion in 2004. The $5.4
billion total backlog at year-end 2005 comprised unfilled product orders of $3.5 billion (of which 90% was
scheduled for delivery in 2006) and product services orders of $1.9 billion scheduled for 2006 delivery. Comparable
December 31, 2004, total backlog was $4.7 billion, of which $2.8 billion was for unfilled product orders and $1.9
billion for product services orders.
NBC UNIVERSAL revenues rose 14%, or $1.8 billion, to $14.7 billion in 2005, reflecting a number of factors, the
largest of which was the full-year contribution from the May 2004 combination of NBC with VUE. The full-year
ownership of VUE was reflected in higher film revenues ($1.6 billion), growth of our entertainment cable business
($0.6 billion), and higher revenues from television production operations ($0.3 billion) and theme parks operations
($0.1 billion). Also contributing to the increase in 2005 revenues was $0.6 billion, partially from settling obligations
related to preferred interests previously issued by VUE and partially from settling certain contracts as part of our
MSNBC restructuring. Partial offsets arose from the lack of a current-year counterpart to the 2004 Olympic Games
broadcasts ($0.9 billion), effects of lower ratings on network and station ad sales ($0.4 billion) and an investment
impairment ($0.1 billion). Segment profit rose 21%, or $0.5 billion, in 2005 as the full-year ownership of VUE
contributed $0.6 billion to higher earnings, including improvements in the film ($0.3 billion), entertainment cable
($0.3 billion) and television production ($0.2 billion) businesses. Effects of the preferred interests and restructuring
transactions ($0.6 billion) were more than offset by the effects of lower earnings from network and station
operations ($0.6 billion) and the investment impairment loss ($0.1 billion).