GE 2013 Annual Report Download - page 4

The diffi cult part about progress
is that great results take time. But,
the pay-back can be huge. Last
November, we received $40 billion
of engine wins at the Dubai Air
Show — in two days. These commit-
ments were for revolutionary new
products that have come to market
in the past few years. They are based
on big bet technologies, years in
the making and delivered ahead of
the competition.
Leading these results was the GE9X,
which is the sole-source engine for the
Boeing 777X. This plane is 20% more
fuel effi cient than the one it replaced,
saving airlines $11 million per airplane
per year. The GE engine drives
50% of this improvement based on
innovative new technology in com-
pressors and combustors. This new
engine — the largest and most fuel
effi cient in the world — has only 16 fan
blades, down from 22 in its prede-
cessor. This achieves effi ciency and
reliability for our customers. And,
to further performance, it is based
on a GE invention: a new material
called ceramic matrix composite.
This material retains its strength at
2200°F — 500°F higher than metal —
at one-third the weight.
Our wins in Dubai came primarily
from three customers: Emirates,
Etihad and Qatar Airways. None of us
grew up at GE with them as custom-
ers. Each has emerged as a global
leader in the past decade. And, we
have built an excellent relationship
with them based on solid operational
performance and mutual trust. The
combination of superior technol-
ogy and strong relationships is the
essence of competitiveness and
allowed GE to win virtually all of
the commitments at the show.
Winning takes bold commitments,
a dedicated team and resilience.
There were at least two “moments of
truth” as we invested in our new
engine line-up. After the 9/11 tragedy,
the commercial aviation industry
was in full crisis. Instead of panicking,
we increased our investment in the
business and our customers. This
has created trust and loyalty for GE
that is unmatched. In 2008, during
the depth of the fi nancial crisis, we
substantially increased our invest-
ment in commercial engine R&D.
Because we made the right bets, we
have the best products at the right
time, securing decades of leader-
ship for your Company. The desire to
compete and win runs deep across
the Company.
GE’s ability to innovate is particularly
crucial in the slow-growth and volatile
economy we live in today. Frequently
I tell investors that if we ever see a U.S.
economy like the ones we had in the
’90s, GE will have earnings upside.
While we don’t expect that soon, there
are signs that the U.S. economy is
getting a little better each day.
LETTER TO SHAREOWNERS
MAKING PROGRESS
GE has stayed competitive for more than a century—not
because we are perfect—but because we make progress.
Progress is about getting better, being better, doing better;
this is why GE people get up every day. We are mission-
based. GE technology and people move, power, build
and cure the world. As investors, you can expect us
to listen, learn, adapt and change. You should expect
us to get better every day, to make progress.
2 GE 2013 ANNUAL REPORT