GE 2008 Annual Report Download - page 29

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management’s discussion and analsis
ge 2008 annual report 27
TECHNOLOGY INFRASTRUCTURE
(In millions) 2008 2007 2006
REVENUES $46,316 $42,801 $37,687
SEGMENT PROFIT $ 8,152 $ 7,883 $ 7,308
(In millions) 2008 2007 2006
REVENUES
Aviation $19,239 $16,819 $13,017
Enterprise Solutions 4,710 4,462 3,951
Healthcare 17,392 16,997 16,560
Transportation 5,016 4,523 4,159
SEGMENT PROFIT
Aviation $ 3,684 $ 3,222 $ 2,802
Enterprise Solutions 691 697 620
Healthcare 2,851 3,056 3,142
Transportation 962 936 774
Technology Infrastructure revenues rose 8%, or $3.5 billion, in
2008 on higher volume ($3.0 billion), the effects of the weaker
U.S. dollar ($0.3 billion) and higher prices ($0.2 billion). The increase
in volume reflected the effects of acquisitions and increased sales
of military and commercial engines and services at Aviation;
increased sales in the international diagnostic imaging, clinical
systems and life sciences businesses of Healthcare; increased
equipment sales at Transportation; and increases at Sensing and
Inspection Technologies and Digital Energy at Enterprise Solutions.
The effects of the weaker U.S. dollar were primarily at Healthcare
and Enterprise Solutions. Higher prices were primarily at Aviation
and Transportation, partially offset by lower prices at Healthcare.
Segment profit rose 3% to $8.2 billion in 2008, compared with
$7.9 billion in 2007, as the effects of productivity ($0.5 billion),
higher volume ($0.4 billion) and higher prices ($0.2 billion) more
than offset the effects of higher material and other costs
($0.9 billion). The effects of productivity were primarily at
Healthcare and Aviation. Volume increases were primarily at
Aviation and Transportation. The increase in material costs was
primarily at Aviation and Transportation, partially offset by a
decrease at Healthcare. Labor and other costs increased across
all businesses of the segment.
Technology Infrastructure revenues rose 14%, or $5.1 billion,
in 2007 on higher volume ($4.6 billion) and the effects of the
weaker U.S. dollar ($0.6 billion), partially offset by lower prices
($0.1 billion). The increase in volume reflected the effects of
acquisitions and increased sales of commercial engines and
services at Aviation; increased sales in the international diag-
nostic imaging, clinical systems and life sciences businesses of
Healthcare; primarily the effects of acquisitions at Enterprise
Solutions; and increased sales of equipment and services at
Transportation. The effects of the weaker U.S. dollar were primarily
at Healthcare and Enterprise Solutions.
ENERGY INFRASTRUCTURE
(In millions) 2008 2007 2006
REVENUES $38,571 $30,698 $25,221
SEGMENT PROFIT $ 6,080 $ 4,817 $ 3,518
(In millions) 2008 2007 2006
REVENUES
Energy $29,309 $22,456 $19,406
Oil & Gas 7,417 6,849 4,340
SEGMENT PROFIT
Energy $ 4,880 $ 3,835 $ 2,918
Oil & Gas 1,127 860 548
Energy Infrastructure revenues rose 26%, or $7.9 billion, in 2008
on higher volume ($6.0 billion), higher prices ($1.4 billion) and
the effects of the weaker U.S. dollar ($0.5 billion). The increase in
volume reflected increased sales of thermal and wind equipment
at Energy, and the effects of acquisitions and increased sales of
services at Oil & Gas. The increase in price was primarily at
Energy, while the effects of the weaker U.S. dollar were primarily
at Energy and Oil & Gas.
Segment profit rose 26% to $6.1 billion in 2008, compared with
$4.8 billion in 2007, as higher prices ($1.4 billion), higher volume
($1.0 billion) and the effects of the weaker U.S. dollar ($0.1 billion)
more than offset the effects of higher material and other costs
($0.7 billion) and lower productivity ($0.5 billion). Volume and
material and other costs increased across all businesses of the
segment. The effects of productivity were primarily at Energy.
Energy Infrastructure revenues rose 22%, or $5.5 billion, in
2007 on higher volume ($4.0 billion), higher prices ($0.8 billion)
and the effects of the weaker U.S. dollar ($0.7 billion). The increase
in volume reflected increased sales of thermal and wind equip-
ment at Energy, and the effects of acquisitions and increased sales
of equipment and services at Oil & Gas. The increase in price
was primarily at Energy, while the effects of the weaker U.S. dollar
were primarily at Oil & Gas and Energy.
Segment profit rose 37% to $4.8 billion in 2007, compared
with $3.5 billion in 2006, as higher prices ($0.8 billion), higher
volume ($0.7 billion) and productivity ($0.1 billion) more than off-
set the effects of higher material and other costs ($0.4 billion).
The increase in volume primarily related to Energy and Oil & Gas.
Energy Infrastructure orders were $43.2 billion in 2008, up from
$36.9 billion in 2007. The $32.5 billion total backlog at year-end
2008 comprised unfilled product orders of $23.0 billion (of which
75% was scheduled for delivery in 2009) and product services
orders of $9.5 billion scheduled for 2009 delivery. Comparable
December 31, 2007, total backlog was $29.3 billion, of which
$21.0 billion was for unfilled product orders and $8.3 billion, for
product services orders. See Corporate Items and Eliminations
for a discussion of items not allocated to this segment.