GE 2014 Annual Report Download - page 71

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GE 2014 FORM 10-K 51
MD&A SEGMENT OPERATIONS | APPLIANCES & LIGHTING
OPERATIONAL OVERVIEW
(Dollar in billions)
2014 GEOGRAPHIC REVENUES: $8.4 BILLION 2014 SUB-SEGMENT REVENUES
SIGNIFICANT TRENDS & DEVELOPMENTS
x During the third quarter of 2014, GE signed an agreement to sell its Appliances business to Electrolux for $3.3 billion. The transaction
has been approved by the boards of directors of GE and Electrolux and remains subject to customary closing conditions and
regulatory approvals, and is targeted to close in mid-2015.
x While the demand in the professional non-LED market segment is slowing, there is a strong global shift to energy efficient lighting
including continued growth in LED products.
FINANCIAL OVERVIEW
(Dollar in billions)
SEGMENT REVENUES & PROFIT SEGMENT PROFIT MARGIN
COMMENTARY:
2014 – 2013
2013 – 2012
Segment revenues up $0.1 billion (1% ) as a result of:
x Higher volume ($0.1 billion) driven by higher sales at
Appliances.
Segment profit up $0.1 billion (13%) as a result of:
x Improved productivity ($0.1 billion) including the effects of
classifying Appliances as a business held for sale in the
third quarter of 2014.
Segment revenues up $0.4 billion (5%) as a result of:
x Higher volume ($0.4 billion) driven by higher sales at
Appliances.
Segment profit up $0.1 billion (23%) as a result of:
x Improved productivity ($0.1 billion) and higher prices.
Revenue Profit