GE 2007 Annual Report Download - page 52

50 ge 2007 annual report
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Healthcare revenues rose 10% to $16.6 billion in 2006 as
higher volume ($2.0 billion) more than offset the effect of lower
prices ($0.4 billion). The rise in volume related to increases in
healthcare services, including the 2006 acquisition of IDX Systems
Corporation and stronger equipment sales. Segment profi t of
$3.1 billion was 21% higher than in 2005 as productivity ($0.6 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 were $16.7 billion in both 2007
and 2006. The $5.6 billion total backlog at year-end 2007 com-
prised unfi lled product orders of $3.5 billion (of which 94% was
scheduled for delivery in 2008) and product services orders of
$2.1 billion scheduled for 2008 delivery. Comparable December 31,
2006, total backlog was $5.9 billion, of which $3.9 billion was for
unfi lled product orders and $2.0 billion for product services orders.
See Corporate Items and Eliminations for a discussion of items
not allocated to this segment.
NBC UNIVERSAL revenues declined 5%, or $0.8 billion, in 2007,
primarily from the lack of current-year counterparts to the 2006
Olympic Games broadcasts ($0.7 billion) and 2006 sale of television
stations ($0.2 billion), lower revenues in our broadcast network
and television stations as a result of lower advertising sales
($0.5 billion) and lower motion picture revenues ($0.1 billion),
partially offset by higher revenues for cable ($0.4 billion) and
television production and distribution ($0.3 billion). Segment
profi t rose 6%, or $0.2 billion, in 2007 as improvements in cable
($0.2 billion), television production and distribution ($0.2 billion),
motion pictures ($0.1 billion) and the absence of Olympic broad-
casts in 2007 ($0.1 billion) were partially offset by the lack of a
current-year counterpart to the 2006 sale of four television stations
($0.2 billion) and lower earnings from our broadcast network and
television stations ($0.2 billion).
Revenues rose 10%, or $1.5 billion, in 2006, primarily from the
2006 Olympic Games broadcasts ($0.7 billion), improvements in
cable ($0.6 billion) and motion pictures ($0.2 billion), and the effects
of exiting a fi lm distribution agreement ($0.2 billion), partially offset
by the effects of lower broadcast network and television stations
ratings and advertising sales ($0.1 billion) and the net effects of
certain strategic actions in both years ($0.1 billion). Segment
profi t declined 6%, or $0.2 billion, in 2006 as lower earnings from
broadcast network and television 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 cable ($0.2 billion)
and the effects of exiting a fi lm distribution agreement ($0.1 billion).
See Corporate Items and Eliminations for a discussion of items
not allocated to this segment.
INDUSTRIAL
(In millions) 2007 2006 2005
REVENUES $17,725 $17,741 $17,060
SEGMENT PROFIT $ 1,743 $ 1,602 $ 1,308
(In millions) 2007 2006 2005
REVENUES
Consumer & Industrial $13,332 $13,790 $13,606
Enterprise Solutions 4,462 3,951 3,454
SEGMENT PROFIT
Consumer & Industrial $ 1,046 $ 981 $ 764
Enterprise Solutions 697 620 544
Industrial revenues were about the same in 2007 compared with
2006 as lower volume ($0.5 billion) was offset by the effects of
the weaker U.S. dollar ($0.3 billion) and higher prices ($0.2 billion).
The decrease in volume was primarily at Consumer & Industrial,
refl ecting the sale of GE Supply in the third quarter of 2006,
partially offset by increases in volume at Enterprise Solutions.
The effects of the weaker U.S. dollar were at both Consumer &
Industrial and Enterprise Solutions and price increases were
primarily at Consumer & Industrial. Segment profi t rose 9%, or
$0.1 billion, as productivity ($0.4 billion) and higher prices
($0.2 billion), primarily at Consumer & Industrial, were substantially
offset by higher material and other costs ($0.4 billion), primarily
at Consumer & Industrial.
Industrial revenues rose 4%, or $0.7 billion, in 2006 on
higher volume ($0.5 billion) and higher prices ($0.2 billion).
Volume increases were primarily at Enterprise Solutions and
price increases were primarily at Consumer & Industrial. Segment
profi t rose 22% as productivity ($0.5 billion), at both Consumer &
Industrial and Enterprise Solutions, and higher prices ($0.2 billion)
at Consumer & Industrial were partially offset by higher material
and other costs ($0.4 billion), primarily at Consumer & Industrial.
See Corporate Items and Eliminations for a discussion of items
not allocated to this segment.
CORPORATE ITEMS AND ELIMINATIONS
(In millions) 2007 2006 2005
REVENUES
Insurance activities $ 3,962 $ 3,692 $ 4,183
Eliminations and other 1,406 61 (408)
Total
$ 5,368 $ 3,753 $ 3,775
OPERATING PROFIT (COST)
Insurance activities $ 145 $ 57 $ 159
Principal pension plans (755) (877) (329)
Underabsorbed corporate overhead (437) (266) (426)
Other (733) (389) 221
Total
$(1,780) $(1,475) $ (375)
Corporate Items and Eliminations include the effects of eliminat-
ing transactions between operating segments; results of our
insurance activities remaining in continuing operations; cost of,
and cost reductions from, our principal pension plans; under-
absorbed corporate overhead; certain non-allocated amounts
described below; and a variety of sundry items. Corporate Items