GE 2007 Annual Report Download - page 50

48 ge 2007 annual report
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Segment profi t always excludes the effects of principal pension
plans, results reported as discontinued operations and accounting
changes. Segment profi t excludes or includes interest and other
fi nancial charges and income taxes according to how a particular
segment’s management is measured — excluded in determining
segment profi t, which we sometimes refer to as “operating
profi t,” for Healthcare, NBC Universal, Industrial and the industrial
businesses of the Infrastructure segment; included in determining
segment profi t, which we sometimes refer to as “net earnings,”
for Commercial Finance, GE Money, and the fi nancial services
businesses of the Infrastructure segment (Aviation Financial
Services, Energy Financial Services and Transportation Finance).
In addition to providing information on segments in their
entirety, we have also provided supplemental information for
certain businesses within the segments.
We have reclassifi ed certain prior-period amounts to conform
to the current period’s presentation. For additional information
about our segments, see note 25.
INFRASTRUCTURE
(In millions) 2007 2006 2005
REVENUES $57,925 $46,965 $41,695
SEGMENT PROFIT $10,810 $ 8,848 $ 7,711
(In millions) 2007 2006 2005
REVENUES
Aviation $16,819 $13,017 $11,826
Aviation Financial Services 4,605 4,177 3,504
Energy 21,825 18,793 16,501
Energy Financial Services 2,405 1,664 1,349
Oil & Gas 6,849 4,340 3,598
Transportation 4,523 4,159 3,577
SEGMENT PROFIT
Aviation $ 3,222 $ 2,802 $ 2,525
Aviation Financial Services 1,155 1,108 764
Energy 3,824 2,906 2,662
Energy Financial Services 724 695 646
Oil & Gas 860 548 411
Transportation 936 774 524
Infrastructure revenues rose 23%, or $11.0 billion, in 2007 on
higher volume ($7.9 billion), higher prices ($1.1 billion) and the
effects of the weaker U.S. dollar ($0.8 billion) at the industrial
businesses in the segment. The increase in volume refl ected the
effects of acquisitions at Aviation and Oil & Gas and increased
sales of commercial engines and services at Aviation, thermal
and wind equipment at Energy, and equipment and services at
Oil & Gas and Transportation. The increase in price was primarily
at Energy and Aviation, while the effects of the weaker U.S. dollar
were primarily at Oil & Gas and Energy. Revenues also increased
as a result of acquisitions ($0.7 billion) and organic revenue
growth ($0.6 billion), primarily at Energy Financial Services and
Aviation Financial Services.
Segment profi t rose 22% to $10.8 billion in 2007, compared
with $8.8 billion in 2006, as higher volume ($1.3 billion), higher
prices ($1.1 billion), productivity ($0.1 billion), the effects of the
weaker U.S. dollar ($0.1 billion) and higher sales of minority inter-
ests in engine programs ($0.1 billion) more than offset the effects
of higher material and other costs ($0.9 billion) at the industrial
businesses in the segment. The increase in volume primarily
related to Aviation, Energy and Oil & Gas. Segment profi t from
the fi nancial services businesses increased $0.1 billion, primarily
as a result of core growth at Aviation Financial Services.
Infrastructure revenues rose 13%, or $5.3 billion, in 2006 on
higher volume ($4.4 billion), higher prices ($0.3 billion) and the
effects of late 2006 weakening of the U.S. dollar ($0.1 billion) at
the industrial businesses in the segment. The increase in volume
refl ected increased sales of power generation equipment at
Energy, commercial and military services and commercial
engines at Aviation, equipment at Oil & Gas, and locomotives at
Transportation. The increase in price was primarily at Energy and
Transportation. Revenues also increased as a result of organic
revenue growth at Aviation Financial Services ($0.7 billion) and
Energy Financial Services ($0.3 billion). Intra-segment revenues,
which increased $0.5 billion, were eliminated from total
Infrastructure revenues.
Segment profi t rose 15% to $8.8 billion in 2006, compared
with $7.7 billion in 2005, as higher volume ($0.6 billion), higher
prices ($0.3 billion) and productivity ($0.3 billion) more than offset
the effects of higher material and other costs ($0.4 billion) at the
industrial businesses in the segment. The increase in volume
primarily related to Aviation, Energy, Transportation and Oil & Gas.
Segment profi t from the fi nancial services businesses increased as
a result of core growth at Aviation Financial Services ($0.3 billion),
including growth in lower-taxed earnings from global operations
that were more than offset by lower one-time benefi ts from
our aircraft leasing business reorganization, and core growth at
Energy Financial Services.
Infrastructure orders were $64.4 billion in 2007, up from
$51.0 billion in 2006. The $58.5 billion total backlog at year-end
2007 comprised unfi lled product orders of $44.4 billion (of which
61% was scheduled for delivery in 2008) and product services
orders of $14.1 billion scheduled for 2008 delivery. Comparable
December 31, 2006, total backlog was $39.2 billion, of which
$27.0 billion was for unfi lled product orders and $12.2 billion, for
product services orders. See Corporate Items and Eliminations
for a discussion of items not allocated to this segment.