GE 2011 Annual Report Download - page 45

’   
GE 2011 ANNUAL REPORT 43
ENERGY INFRASTRUCTURE
(In millions) 2011 2010 2009
REVENUES $43,694 $37,514 $40,648
SEGMENT PROFIT $ 6,650 $ 7,271 $ 7,105
REVENUES
Energy $31,080 $29,040 $31,858
Oil & Gas 13,663 9,483 9,701
SEGMENT PROFIT
Energy $ 4,992 $ 5,887 $ 5,736
Oil & Gas 1,872 1,553 1,532
Energy Infrastructure revenues increased 16% or $6.2 billion
(including $4.1 billion from acquisitions) in 2011 as higher volume
($5.8 billion) and the effects of the weaker U.S. dollar ($0.9 billion)
were partially offset by lower prices ($0.5 billion). Higher volume
was mainly driven by acquisitions and an increase in sales of
services at both Energy and Oil & Gas. The effects of the weaker
U.S. dollar and lower prices were at both Energy and Oil & Gas.
Segment profi t decreased 9%, or $0.6 billion, as lower produc-
tivity ($1.4 billion), driven primarily by the wind turbines business,
acquisitions and investment in our global organization and new
technology, and lower prices ($0.5 billion), driven primarily by the
wind turbines business, were partially offset by higher volume
($1.1 billion), and the effects of defl ation ($0.1 billion). Lower pro-
ductivity, lower prices, higher volume and the effects of defl ation
were at both Energy and Oil & Gas.
Energy Infrastructure segment revenues decreased 8%, or
$3.1 billion, in 2010 as lower volume ($3.3 billion) and the stron-
ger U.S. dollar ($0.4 billion) were partially offset by higher prices
($0.5 billion) and higher other income ($0.1 billion). Lower volume
primarily refl ected decreases in thermal and wind equipment
sales at Energy. The effects of the stronger U.S. dollar were at
both Energy and Oil & Gas. Higher prices at Energy were partially
offset by lower prices at Oil & Gas. The increase in other income at
Energy was partially offset by lower other income at Oil & Gas.
Segment profi t increased 2% to $7.3 billion in 2010, compared
with $7.1 billion in 2009 as higher prices ($0.5 billion), the effects
of defl ation ($0.4 billion) and higher other income ($0.1 billion)
were partially offset by lower volume ($0.6 billion), the stronger
U.S. dollar ($0.1 billion) and decreased productivity ($0.1 billion).
Higher prices at Energy were partially offset by lower prices at
Oil & Gas. The effects of defl ation primarily refl ected decreased
material costs at both Energy and Oil & Gas. An increase in other
income at Energy was partially offset by lower other income at Oil
& Gas. Lower volume primarily refl ected decreases in wind and
thermal equipment sales at Energy and was partially offset by
higher volume at Oil & Gas. The effects of the stronger U.S. dollar
were at both Energy and Oil & Gas. The effects of decreased pro-
ductivity were primarily at Energy.
Energy Infrastructure equipment orders increased 39% to
$25.6 billion at December 31, 2011. Total Energy Infrastructure
backlog increased 8% to $72.7 billion at December 31, 2011, com-
posed of equipment backlog of $23.0 billion and services backlog
of $49.7 billion. Comparable December 31, 2010 equipment
and service order backlogs were $18.3 billion and $48.8 billion,
respectively. See Corporate Items and Eliminations for a discus-
sion of items not allocated to this segment.
AVIATION revenues of $18.9 billion in 2011 increased $1.2 billion,
or 7%, due primarily to higher volume ($1.1 billion) and higher
prices ($0.2 billion), partially offset by lower other income ($0.1 bil-
lion). Higher volume and higher prices were driven by increased
services ($0.9 billion) and equipment sales ($0.4 billion). The
increase in services revenue was primarily due to higher commer-
cial spares sales while the increase in equipment revenue was
primarily due to commercial engines.
Segment profi t of $3.5 billion in 2011 increased $0.2 billion, or
6%, due primarily to higher volume ($0.2 billion) and higher prices
($0.2 billion), partially offset by higher infl ation, primarily non-
material related ($0.1 billion), and lower other income ($0.1 billion).
Incremental research and development and GEnx product launch
costs offset higher productivity.
Aviation revenues of $17.6 billion in 2010 decreased $1.1 bil-
lion, or 6%, as lower volume ($1.2 billion) and lower other income
($0.1 billion), refl ecting lower transaction gains, were partially
offset by higher prices ($0.2 billion). The decrease in volume
refl ected decreased commercial and military equipment sales
and services. Lower transaction gains refl ect the absence of gains
related to the Airfoils Technologies International—Singapore
Pte. Ltd. (ATI) acquisition and the Times Microwave Systems dis-
position in 2009, partially offset by a gain on a partial sale of a
materials business and a franchise fee.
Segment profi t of $3.3 billion in 2010 decreased $0.6 billion,
or 16%, due to lower productivity ($0.4 billion), lower volume
($0.2 billion) and lower other income ($0.2 billion), refl ecting lower
transaction gains, partially offset by higher prices ($0.2 billion).
Lower productivity was primarily due to product launch and pro-
duction costs associated with the GEnx engine shipments.
Aviation equipment orders increased 33% to $11.9 billion
at December 31, 2011. Total Aviation backlog increased 24%
to $99.0 billion at December 31, 2011, composed of equipment
backlog of $22.5 billion and services backlog of $76.5 billion.
Comparable December 31, 2010 equipment and service order
backlogs were $20.0 billion and $59.5 billion, respectively. See
Corporate Items and Eliminations for a discussion of items not
allocated to this segment.