GE 2014 Annual Report Download - page 49

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GE 2014 FORM 10-K 29
MD&A CONSOLIDATED RESULTS
CONSOLIDATED RESULTS
(Dollars in billions)
EARNINGS INDUSTRIAL SELLING, GENERAL &
ADIMINSTRATIVE (SG&A) AS A % OF SALES
COMMENTARY:
2014 – 2013
2013 – 2012
Consolidated earnings increased 1% primarily due to an
increase in the operating profit of the industrial segments,
partially offset by lower financial services income and the
absence of the NBCU LLC related income.
x Industrial segment profit increased 10% with growth
driven by Aviation, Oil & Gas and Power & Water.
x Industrial segment margin increased 50 basis points
(bps) driven by higher productivity and pricing, partially
offset by negative business mix and the effects of
inflation.
x Financial Services earnings decreased 12% as a result
of the effects of dispositions, core decreases and lower
gains, partially offset by lower impairments and lower
provisions for losses on financing receivables.
x The effects of acquisitions on our consolidated net
earnings were increases of $0.2 billion and $0.1 billion
in 2014 and 2013, respectively. The effects of
dispositions on net earnings were a decrease of $2.6
billion in 2014 and an increase of $1.4 billion in 2013.
x Industrial SG&A as a percentage of total sales
decreased to 14.0% as a result of global cost reduction
initiatives, primarily at Power & Water and Healthcare.
This was partially offset by higher acquisition-related
costs.
Consolidated earnings increased 4% on strong industrial
segment growth and continued stabilization in financial
services.
x Industrial segment profit increased 5% with growth driven
by Aviation and Oil & Gas.
x Industrial segment margin increased 60 bps driven by
higher pricing and favorable business mix, partially offset
by the effects of inflation.
x Financial Services
earnings increased 10%, as a result of
the effects of dispositions and higher gains, partially
offset by higher impairments and higher provisions for
losses on financing receivables.
x The effects of acquisitions on our consolidated net
earnings were increases of $0.1 billion in both 2013 and
2012. The effects of dispositions on net earnings were an
increase of $1.4 billion in 2013 and a decrease of $0.3
billion in 2012.
x Industrial SG&A as a percentage of total sales decreased
to 15.9% as a result of global cost reduction initiatives
related to simplification efforts both in the industrial
segments and corporate. This was partially offset by
increased acquisition-related costs and higher
restructuring.
See the “Other Consolidated Information” section within the MD&A of this Form 10-K for a discussion of postretirement benefit
plans costs, income taxes and geographic data.
*Non-GAAP Financial Measure
Earnings Operating Earnings*