GE 2007 Annual Report Download - page 51

ge 2007 annual report 49
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COMMERCIAL FINANCE
(In millions) 2007 2006 2005
REVENUES $34,288 $30,853 $27,273
SEGMENT PROFIT $ 6,039 $ 5,297 $ 4,487
December 31 (In millions) 2007 2006
TOTAL ASSETS $310,412 $252,901
(In millions) 2007 2006 2005
REVENUES
Capital Solutions $14,354 $14,169 $13,162
Real Estate 7,021 5,020 3,492
SEGMENT PROFIT
Capital Solutions $ 1,889 $ 1,789 $ 1,522
Real Estate 2,285 1,841 1,282
December 31 (In millions) 2007 2006
ASSETS
Capital Solutions $122,527 $100,882
Real Estate 79,285 53,786
Commercial Finance 2007 revenues and net earnings increased
11% and 14%, respectively, compared with 2006. Revenues in
2007 and 2006 included $2.4 billion and $0.1 billion from acquisi-
tions, respectively, and in 2007 were reduced by $2.7 billion as a
result of dispositions. Revenues in 2007 also increased $3.7 billion
as a result of organic revenue growth ($2.7 billion) and the weaker
U.S. dollar ($1.0 billion). The increase in net earnings resulted from
core growth ($0.5 billion), acquisitions ($0.2 billion), the weaker
U.S. dollar ($0.1 billion), and investment income ($0.1 billion), par-
tially offset by dispositions ($0.1 billion) and lower securitization
income ($0.1 billion). Core growth included $0.5 billion representing
the total year’s tax benefi t on the disposition of our investment
in SES, partially offset by $0.2 billion of higher credit losses and
$0.1 billion in charges related to mark-to-market adjustments to
loans held for sale. Investment income included higher SES gains
($0.1 billion) offset by impairments of securitization retained
interests ($0.1 billion).
Real Estate assets at December 31, 2007, increased $25.5 billion,
or 47%, from December 31, 2006, of which $12.6 billion was
real estate investments, also up 47%. Real Estate net earnings
increased 24% compared with 2006, primarily as a result of a
$0.5 billion increase in net earnings from sales of real estate
investments.
Commercial Finance 2006 revenues and net earnings
increased 13% and 18%, respectively, compared with 2005.
Revenues in 2006 and 2005 included $1.2 billion and $0.1 billion
from acquisitions, respectively, and in 2006 were reduced by
$0.1 billion as a result of dispositions. Revenues in 2006 also
increased as a result of organic revenue growth ($2.5 billion)
and the second quarter 2006 consolidation of GE SeaCo, an
entity previously accounted for using the equity method
($0.2 billion). The increase in net earnings resulted from core
growth ($0.7 billion), including growth in lower-taxed earnings
from global operations, and acquisitions ($0.1 billion).
Real Estate assets at December 31, 2006, increased $18.5 billion,
or 52%, from December 31, 2005, of which $12.4 billion was real
estate investments, up 76%. Real Estate net earnings increased
44% compared with 2005, primarily as a result of a $0.6 billion
increase in net earnings from real estate investments. See Corporate
Items and Eliminations for a discussion of items not allocated to
this segment.
GE MONEY
(In millions) 2007 2006 2005
REVENUES $25,019 $19,783 $17,072
SEGMENT PROFIT $ 4,280 $ 3,267 $ 2,527
December 31 (In millions) 2007 2006
TOTAL ASSETS $210,952 $179,284
GE Money 2007 revenues and net earnings increased 26% and
31%, respectively, compared with 2006. Revenues in 2007
included $0.4 billion from acquisitions. Revenues in 2007 also
increased $4.8 billion as a result of organic revenue growth
($3.5 billion) and the weaker U.S. dollar ($1.4 billion). The increase
in net earnings resulted primarily from core growth ($0.4 billion),
higher securitization income ($0.4 billion) and the weaker U.S.
dollar ($0.2 billion). Core growth included growth in lower-taxed
earnings from global operations ($0.4 billion) and the sale of
part of our Garanti investment ($0.2 billion), partially offset by
declines in fair value of retained interests in securitizations
($0.1 billion) and lower results in the U.S. refl ecting the effects of
higher delinquencies.
GE Money 2006 revenues and net earnings increased 16%
and 29%, respectively, compared with 2005. Revenues in 2006
included $0.9 billion from acquisitions. Revenues in 2006 also
increased $1.8 billion as a result of organic revenue growth.
The increase in net earnings resulted primarily from core growth
($0.5 billion), including growth in lower-taxed earnings from global
operations, acquisitions ($0.2 billion) and higher securitizations
($0.1 billion). See Corporate Items and Eliminations for a discussion
of items not allocated to this segment.
HEALTHCARE revenues rose 3% to $17.0 billion in 2007 as the
effects of the weaker U.S. dollar ($0.5 billion) and higher volume
($0.4 billion) more than offset lower prices ($0.5 billion). Increased
sales in the international diagnostic imaging, clinical systems and
life sciences businesses were partially offset by price pressures
on U.S. equipment sales and lower sales of surgical imaging
equipment resulting from regulatory suspensions of equipment
shipments. Segment profi t of $3.1 billion in 2007 was 3% lower
than in 2006 as lower prices ($0.5 billion) and higher labor and
other costs ($0.2 billion) were substantially offset by the effects
of productivity ($0.4 billion) and higher volume ($0.1 billion).