GE 2015 Annual Report Download - page 59

Download and view the complete annual report

Please find page 59 of the 2015 GE annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 252

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252

MD&A CONSOLIDATED RESULTS
GE 2015 FORM 10-K 31
CONSOLIDATED RESULTS
(Dollars in billions)
EARNINGS OPERATING EARNINGS*
COMMENTARY: 2015 ± 2014 2014 ± 2013
Consolidated earnings decreased $7.9 billion or 83%, primarily
due to lower Financial Services income.
x Industrial segment profit increased 1% with growth driven by
Aviation, Appliances & Lighting, Transportation, Energy
Management, and Power, partially offset by lower
performance for Oil & Gas, Renewable Energy and
Healthcare.
x Industrial segment margin increased 30 basis points (bps)
driven by higher productivity, pricing and impacts of material
deflation, partially offset by effects of Alstom results.
Excluding Alstom, Industrial segment margins increased 80
bps.* to 17.0%.
x Financial Services net earnings decreased $9.2 billion,
primarily due to charges associated with the GE Capital Exit
Plan. See the GE Capital and Capital segment sections for
more details.
x The effects of acquisitions on our consolidated net earnings
were insignificant in 2015 and a $0.2 billion increase in 2014.
The effects of dispositions on net earnings were an increase
of $0.9 billion in 2015 and a decrease of $1.6 billion in 2014.
x Industrial SG&A as a percentage of total sales remained flat
at 14% as a result of global cost reduction initiatives, primarily
at Oil & Gas, Healthcare and Corporate. This was partially
offset by lower revenues and higher acquisition-related costs.
Consolidated earnings increased $1.9 billion or 25%, 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 Renewable Energy.
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 net earnings increased $0.8 billion as a
result of core increases, equipment leased to others (ELTO)
impairments related to our operating lease portfolio of
commercial aircraft, and higher gains, partially offset by the
effects of dispositions.
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 $1.6 billion in 2014 and an increase of
$0.1 billion in 2013.
x Industrial SG&A as a percentage of total sales decreased to
14% as a result of global cost reduction initiatives, primarily at
Power and Healthcare. This was partially offset by higher
acquisition-related costs.
See the Other Consolidated Information section within the MD&A for a discussion of postretirement benefit plans costs, income taxes
and geographic data.
*Non-GAAP Financial Measure
GE 2015 FORM 10-K 31