GE 2012 Annual Report Download - page 45

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management’s discussion and analsis
GE 2012 ANNUAL REPORT 43
POWER & WATER revenues of $28.3 billion increased $2.6 billion, or
10%, in 2012 as higher volume ($3.4 billion), driven by an increase
in sales of equipment at Wind, and an increase in other income
($0.2 billion) were partially offset by the effects of the stronger
U.S. dollar ($0.6 billion) and lower prices ($0.4 billion).
Segment profit of $5.4 billion increased $0.4 billion, or 8%,
in 2012 as higher volume ($0.7 billion), increased other income
($0.2 billion) and the impacts of deflation ($0.1 billion), were
partially offset by lower prices ($0.4 billion), lower produc-
tivity ($0.1 billion) and the effects of the stronger U.S. dollar
($0.1 billion).
Power & Water revenues of $25.7 billion increased $0.9 billion
(including $0.3 billion from acquisitions), or 4%, in 2011 as higher
volume ($0.9 billion) and the effects of the weaker U.S. dollar
($0.4 billion) were partially offset by lower prices ($0.5 billion).
Segment profit of $5.0 billion decreased $0.8 billion, or 13%, in
2011 as lower productivity ($0.7 billion), and lower prices ($0.5 bil-
lion), driven primarily by Wind, were partially offset by higher
volume ($0.2 billion) and the effects of deflation ($0.1 billion).
Power & Water segment orders decreased 10% to $24.2 billion
in 2012. Total Power & Water backlog increased 1% to $58.8 bil-
lion at December 31, 2012, composed of equipment backlog of
$8.6 billion and services backlog of $50.2 billion. Comparable
December 31, 2011 equipment and service order backlogs
were $12.0 billion and $45.9 billion, respectively. See Corporate
Items and Eliminations for a discussion of items not allocated to
this segment.
OIL & GAS revenues of $15.2 billion increased $1.6 billion (includ-
ing $0.7 billion from acquisitions), or 12%, in 2012 as higher
volume ($2.3 billion) driven by acquisitions and an increase in
sales of both equipment and services was partially offset by the
effects of the stronger U.S. dollar ($0.7 billion).
Segment profit of $1.9 billion increased $0.3 billion, or 16%, in
2012 as higher volume ($0.3 billion) and increased productivity
($0.1 billion), reflecting increased equipment margins, were par-
tially offset by the effects of the stronger U.S. dollar ($0.1 billion).
Oil & Gas revenues of $13.6 billion increased $4.2 billion
(including $2.9 billion from acquisitions), or 44%, in 2011 as higher
volume ($3.8 billion) and the effects of the weaker U.S. dollar
($0.4 billion) were partially offset by lower prices ($0.1 billion).
Segment profit of $1.7 billion increased $0.3 billion, or 18%,
in 2011 as higher volume ($0.6 billion) was partially offset by
lower productivity ($0.3 billion) and lower prices ($0.1 billion).
Oil & Gas segment orders increased 16% to $18.2 billion
in 2012. Total Oil & Gas backlog increased 24% to $14.8 bil-
lion at December 31, 2012, composed of equipment backlog of
$10.2 billion and services backlog of $4.5 billion. Comparable
December 31, 2011 equipment and service order backlogs
were $8.5 billion and $3.5 billion, respectively. See Corporate
Items and Eliminations for a discussion of items not allocated to
this segment.
ENERGY MANAGEMENT revenues of $7.4 billion increased $1.0 bil-
lion (including $1.0 billion from acquisitions), or 15%, in 2012 as
higher volume ($1.1 billion) primarily driven by acquisitions, higher
prices ($0.1 billion) and increased other income ($0.1 billion)
were partially offset by the effects of the stronger U.S. dollar
($0.2 billion).
Segment profit of $0.1 billion increased $0.1 billion, or 68%, in
2012 as a result of higher prices ($0.1 billion) and increased other
income ($0.1 billion).
Energy Management revenues of $6.4 billion increased $1.3 bil-
lion (including $0.8 billion from acquisitions), or 24%, in 2011 as
higher volume ($1.2 billion), mainly driven by acquisitions, the effects
of the weaker U.S. dollar ($0.1 billion) and higher prices ($0.1 billion)
were partially offset by decreased other income ($0.1 billion).
Segment profit of $0.1 billion decreased $0.1 billion, or 50%,
in 2011 as the effects of inflation ($0.1 billion) and decreased
other income ($0.1 billion) were partially offset by higher prices
($0.1 billion).
Energy Management segment orders increased 16% to
$7.9 billion in 2012. Total Energy Management backlog increased
6% to $3.8 billion at December 31, 2012, composed of equip-
ment backlog of $3.2 billion and services backlog of $0.6 billion.
Comparable December 31, 2011 equipment and service order
backlogs were $2.8 billion and $0.8 billion, respectively. See
Corporate Items and Eliminations for a discussion of items not
allocated to this segment.
AVIATION revenues of $20.0 billion increased $1.1 billion, or 6%, in
2012 due primarily to higher prices ($0.8 billion) and higher vol-
ume ($0.4 billion), which were driven by increased commercial
and military engine sales.
Segment profit of $3.7 billion increased $0.2 billion, or 7%, in
2012 due primarily to higher prices ($0.8 billion) and higher vol-
ume ($0.1 billion), partially offset by higher inflation ($0.3 billion)
and lower productivity ($0.3 billion).
Aviation revenues of $18.9 billion increased $1.2 billion, or
7%, in 2011 due primarily to higher volume ($1.1 billion) and
higher prices ($0.2 billion), partially offset by lower other income
($0.1 billion). Higher volume and higher prices were driven by
increased services ($0.9 billion) and equipment sales ($0.4 bil-
lion). The increase in services revenue was primarily due to higher
commercial spares sales while the increase in equipment revenue
was primarily due to commercial engines.
Segment profit of $3.5 billion increased $0.2 billion, or 6%,
in 2011 due primarily to higher volume ($0.2 billion) and higher
prices ($0.2 billion), partially offset by higher inflation, primar-
ily 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 equipment orders increased 8% to $13.0 billion
in 2012. Total Aviation backlog increased 3% to $102.4 bil-
lion at December 31, 2012, composed of equipment backlog of
$22.9 billion and services backlog of $79.5 billion. Comparable
December 31, 2011 equipment and service order backlogs
were $22.5 billion and $76.5 billion, respectively. See Corporate
Items and Eliminations for a discussion of items not allocated to
this segment.