GE 2005 Annual Report Download - page 45

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(45)
Global Operations
Our global activities span all geographic regions and primarily encompass manufacturing for local and export
markets, import and sale of products produced in other regions, leasing of aircraft, sourcing for our plants domiciled
in other global regions and provision of financial services within these regional economies. Thus, when countries or
regions experience currency and/or economic stress, we often have increased exposure to certain risks, but also often
have new profit opportunities. Potential increased risks include, among other things, higher receivable delinquencies
and bad debts, delays or cancelations of sales and orders principally related to power and aircraft equipment, higher
local currency financing costs and slowdown in established financial services activities. New profit opportunities
include, among other things, more opportunities for lower cost outsourcing, expansion of industrial and financial
services activities through purchases of companies or assets at reduced prices and lower U.S. debt financing costs.
Estimated results of global activities include the results of our operations located outside the United States
plus all U.S. exports. We classify certain GECS operations that cannot meaningfully be associated with specific
geographic areas as “Other Global” for this purpose.
GLOBAL REVENUES BY REGION
(In millions) 2005 2004 2003
Europe $36,900 $ 32,400 $ 24,400
Pacific Basin 16,000 13,000 13,000
Americas
7,500 7,000 5,600
Other Global 6,100 5,700 4,600
66,500 58,100 47,600
Exports from the U.S. to external customers 11,400 8,800 6,700
Total(a) $77,900 $ 66,900 $ 54,300
(a) Included $6.6 billion, $5.8 billion and $4.7 billion of intercompany revenues in 2005, 2004 and 2003, respectively.
Global revenues rose 16% to $77.9 billion in 2005 compared with $66.9 billion and $54.3 billion in 2004 and 2003,
respectively. Global revenues to external customers as a percentage of consolidated revenues were 48% in 2005,
compared with 45% and 44% in 2004 and 2003, respectively. The effects of the weaker U.S. dollar on reported
results were to increase revenues by $0.9 billion, $4.1 billion and $3.1 billion in 2005, 2004 and 2003, respectively;
and to increase earnings by $0.1 billion, $0.1 billion and $0.2 billion in 2005, 2004 and 2003, respectively.
GE global revenues were $48.2 billion in 2005, up 15% over 2004, led by increases at Infrastructure and
NBC Universal, mainly in Europe and the Pacific Basin. Exports from the U.S. were up 30%, led by Infrastructure,
again showing strength in Europe and the Pacific Basin. GE global revenues in 2004 were $41.7 billion, up 27%
over 2003, led by Healthcare, including the effects of the Amersham acquisition, and NBC Universal, reflecting the
combination of NBC and VUE. U.S. exports grew 31% in 2004 on strong growth at Infrastructure.