GE 2006 Annual Report Download - page 57

growth ($1.5 billion) and the weaker U.S. dollar ($0.3 billion).
The increase in net earnings resulted primarily from core growth
($0.6 billion), including growth in lower-taxed earnings from
global operations, and acquisitions ($0.1 billion), partially offset
by increased costs to launch new products and promote brand
awareness ($0.2 billion).
HEALTHCARE revenues rose 9% to $16.6 billion in 2006 as higher
volume ($1.8 billion) more than offset the effect of lower prices
($0.4 billion). The rise in volume related to increases in health-
care services, including the effects of the 2006 acquisition of
IDX Systems Corporation and stronger equipment sales. Segment
profit of $3.1 billion was 18% higher than in 2005 as productivity
($0.6 billion) and the effects of higher volume ($0.3 billion) more
than offset the effects of lower prices ($0.4 billion) and higher
material and other costs ($0.1 billion).
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). Segment 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).
Orders received by Healthcare in 2006 were $16.7 billion,
compared with $15.6 billion in 2005. The $5.9 billion total backlog
at year-end 2006 comprised unfilled product orders of $3.9 billion
(of which 84% was scheduled for delivery in 2007) and product
services orders of $2.0 billion scheduled for 2007 delivery.
Comparable December 31, 2005, total backlog was $5.4 billion, of
which $3.5 billion was for unfilled product orders and $1.9 billion
for product services orders. See Corporate Items and Eliminations
for a discussion of items not allocated to this segment.
NBC UNIVERSAL revenues rose 10%, or $1.5 billion in 2006,
primarily from the 2006 Olympic Games broadcasts ($0.7 billion),
improvements in the entertainment cable business ($0.6 billion),
improvements in the film business ($0.2 billion) and the effects of
exiting a film distribution agreement ($0.2 billion), partially offset
by the effects of lower ratings on network and station advertising
sales ($0.1 billion) and the net effects of certain strategic actions
in both years ($0.1 billion). Segment profit declined 6%, or
$0.2 billion, in 2006 as lower earnings from network and station
operations ($0.4 billion), the 2006 Olympic Games broadcasts
($0.1 billion), and the net effects of certain strategic actions in
both years ($0.1 billion) were partially offset by higher earnings
from the cable business ($0.2 billion) and the effects of exiting a
film distribution agreement ($0.1 billion).
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, which resulted 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 ($0.1 billion). Also contributing to the increase
was $0.5 billion from the effects of certain strategic actions.
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Partial offsets arose from the lack of a counterpart to the 2004
Olympic Games broadcasts ($0.9 billion) and the effects of lower
ratings on network and station advertising sales ($0.4 billion).
Segment profit rose 21%, or $0.5 billion, in 2005 as the full-year
ownership of VUE contributed $0.6 billion, including improve-
ments in the film ($0.3 billion), entertainment cable ($0.2 billion)
and television production ($0.1 billion) businesses. The effects of
certain strategic actions ($0.5 billion) were more than offset by
lower earnings from network and station operations ($0.6 billion).
See Corporate Items and Eliminations for a discussion of items
not allocated to this segment.
INDUSTRIAL
(In millions) 2006 2005 2004
REVENUES $33,494 $32,631 $30,722
SEGMENT PROFIT $ 2,694 $ 2,559 $ 1,833
(In millions) 2006 2005 2004
REVENUES
Consumer & Industrial $14,249 $14,092 $13,767
Equipment Services 7,061 6,627 6,571
Plastics 6,649 6,606 6,066
SEGMENT PROFIT
Consumer & Industrial $ 1,140 $ 871 $ 716
Equipment Services 269 197 82
Plastics 674 867 566
Industrial revenues rose 3%, or $0.9 billion, in 2006 as higher
volume ($0.7 billion) was partially offset by lower prices ($0.2 billion)
and the effects of the overall strengthening U.S. dollar ($0.1 billion)
at the industrial businesses in the segment. Volume increases
and price decreases were primarily at Plastics. Consumer &
Industrial volume was unchanged as volume from organic
growth ($0.9 billion) was offset by the effects of lost volume from
GE Supply, which was sold in the third quarter of 2006. Revenues
increased at Equipment Services as a result of the second quarter
2006 consolidation of GE SeaCo, an entity previously accounted
for using the equity method ($0.2 billion), and organic revenue
growth ($0.2 billion). Segment profit rose 5% as productivity
($0.9 billion), primarily at Consumer & Industrial and Plastics, and
higher volume ($0.1 billion) were partially offset by higher material
and other costs ($0.7 billion), primarily at Consumer & Industrial
and Plastics, and lower prices ($0.2 billion). Price increases were
realized at Consumer & Industrial to offset commodity infl ation,
but these increases were more than offset by price declines at
Plastics. Segment profit at Equipment Services increased as a
result of core growth ($0.1 billion).
Industrial revenues rose 6%, or $1.9 billion, in 2005 on higher
prices ($1.5 billion), higher volume ($0.2 billion) and the weaker
U.S. dollar ($0.2 billion) at the industrial businesses in the segment.
We realized price increases primarily at Plastics and Consumer &
Industrial. Volume increases related primarily to the acquisitions
of Edwards Systems Technology and InVision Technologies, Inc.
by our Security business, but were partially offset by lower volume
at Plastics. Revenues at Equipment Services also increased as a
result of organic revenue growth ($0.4 billion) and acquisitions
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