GE 2013 Annual Report Download - page 37

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GE 2013 ANNUAL REPORT 35
Healthcare (12% and 13% of consolidated three-year revenues
and total segment profi t, respectively) revenues were slightly lower
in 2013 on lower prices and the effects of a stronger U.S. dollar,
partially offset by higher volume. Revenues increased 1% in 2012
due to higher volume in international equipment sales, with the
strongest growth in emerging markets and other income, par-
tially offset by the stronger U.S. dollar and lower prices. Segment
profi t increased 4% in 2013 as a result of increased productivity
and volume, partially offset by lower prices, the effects of infl a-
tion and the stronger U.S. dollar. Segment profi t increased 4% in
2012 as increased productivity, higher volume and other income
were partially offset by lower prices and the effects of infl ation.
Transportation (4% and 4% of consolidated three-year reve-
nues and total segment profi t, respectively) revenues increased
5% in 2013 due to higher volume, primarily from acquisitions.
Revenues increased 15% in 2012 due to higher volume and
higher prices related to increased equipment sales and services.
Segment profi t increased 13% in 2013 as a result of the effects
of defl ation, higher volume and increased productivity. Segment
profi t increased 36% in 2012 as a result of higher volume,
higher prices and increased productivity, refl ecting improved
service margins.
Appliances & Lighting (formerly Home & Business Solutions)
(5% and 1% of consolidated three-year revenues and total
segment profi t, respectively) revenues increased 5% in 2013
primarily on higher volume at Appliances. In 2012, revenues
increased 4% refl ecting higher prices at Appliances, partially
offset by lower volume. Segment profi t increased 23% in 2013
primarily as a result of improved productivity and higher prices.
Segment profi t increased 31% in 2012 as a result of higher prices,
partially offset by the effects of infl ation and lower productivity.
GE Capital (31% and 33% of consolidated three-year reve-
nues and total segment profi t, respectively) revenues decreased
3% in 2013 and 6% in 2012, refl ecting a reduction in ending net
investment (ENI). Net earnings increased 12% in 2013 and 13%
in 2012 as a result of dispositions and higher gains, partially off-
set by higher impairments and higher provisions for losses on
fi nancing receivables. We reduced ENI, excluding cash and equiv-
alents, to $380 billion at December 31, 2013. GECC is a diversely
funded and smaller, more focused fi nance company with strong
positions in several commercial mid-market and consumer
fi nancing segments.
We integrate acquisitions as quickly as possible. Only reve-
nues and earnings from the date we complete the acquisition
through the end of the following fourth quarter are attributed to
such businesses. Overall, the effects of acquisitions increased
consolidated revenues $1.6 billion, $2.0 billion and $4.5 billion
in 2013, 2012 and 2011, respectively. The effects of acquisitions
on our consolidated net earnings were increases of $0.1 bil-
lion, $0.1 billion and an insignifi cant amount in 2013, 2012 and
2011, respectively. Dispositions also affected our ongoing
results through lower revenues of $0.1 billion, $5.1 billion and
$12.6 billion in 2013, 2012 and 2011, respectively. The effects of
dispositions on net earnings were an increase of $1.4 billion in
2013 and decreases of $0.3 billion in both 2012 and 2011.
DISCONTINUED OPERATIONS. In 2013, we sold our CLL trailer
services business in Europe (CLL Trailer Services) and announced
the planned sale of our Consumer banking business in Russia
(Consumer Russia). These actions are consistent with our goal
of reducing GECC ENI and focusing our businesses on selective
fi nancial services products where we have deep domain expe-
rience, broad distribution, and the ability to earn a consistent
return on capital, while managing our overall balance sheet size
and risk. Discontinued operations also includes GE Money Japan
(our Japanese personal loan business, Lake, and our Japanese
mortgage and card businesses, excluding our investment in
GE Nissen Credit Co., Ltd.), our U.S. mortgage business (WMC),
our U.S. recreational vehicle and marine equipment fi nancing
business (Consumer RV Marine), Consumer Mexico, Consumer
Singapore, our Consumer home lending operations in Australia
and New Zealand (Australian Home Lending) and our Consumer
mortgage lending business in Ireland (Consumer Ireland).
All of these operations were previously reported in the GE
Capital segment.
We reported the operations described above as discontin-
ued operations for all periods presented. For further information
about discontinued operations, see the Segment Operations—
Discontinued Operations section and Note 2.
WE DECLARED $8.1 BILLION IN DIVIDENDS IN 2013. Common per-
share dividends increased 13% to $0.79 in 2013 after an increase
of 15% to $0.70 in 2012. We increased our quarterly dividend
four times between 2011 and 2013, and on February 7, 2014, our
Board of Directors approved a quarterly dividend of $0.22 per
share of common stock, which is payable April 25, 2014, to shar-
eowners of record at close of business on February 24, 2014. In
2011, we declared $1.0 billion in preferred stock dividends (includ-
ing $0.8 billion as a result of our redemption of preferred stock).
See Note 15.
Except as otherwise noted, the analysis in the remainder of
this section presents the results of GE (with GECC included on a
one-line basis) and GECC. See the Segment Operations section
and Note 27 for a more detailed discussion of the businesses
within GE and GECC.
Signifi cant matters relating to our Statement of Earnings are
explained below.
GE SALES OF PRODUCT SERVICES were $44.8 billion in 2013, an
increase of 3% compared with 2012, and operating profi t from
product services was $13.4 billion in 2013, an increase of 7%
compared with 2012. Both the sales and operating profi t of
product services increases were at Oil & Gas, Aviation, Energy
Management and Transportation. GE sales of product services
were $43.4 billion in 2012, an increase of 4% compared with 2011,
and operating profi t from product services was $12.5 billion in
2012, an increase of 6% compared with 2011. Both the sales and
operating profi t of product services increases were at Power &
Water, Oil & Gas, Transportation and Energy Management.