GE 2015 Annual Report Download - page 67

MD&A SEGMENT OPERATIONS | POWER
GE 2015 FORM 10-K 39
FINANCIAL OVERVIEW
(Dollars in billions)
SEGMENT REVENUES SEGMENT PROFIT SEGMENT PROFIT MARGIN
(a) $20.6 billion, excluding $0.9 billion related to
A
lstom*
(a) $4.6 billion, excluding $(0.1) billion related
to Alstom*
(a) 22.3%, excluding (1.4)% related to Alstom*
SEGMENT REVENUES & PROFIT WALK: COMMENTARY:
2015 ± 2014 2015 ± 2014
Segment revenues up $0.9 billion (4%);
Segment profit was flat as a result of:
x The increase in revenues was mainly driven by higher
volume, primarily at Power Services, as well as the effects of
the Alstom acquisition, partially offset by the impact of a
stronger U.S. dollar.
x Profit was flat as higher volume, the effects of deflation,
higher prices, and favorable business mix were offset by
lower productivity, including an increase in SG&A cost, the
impact of a stronger U.S. dollar, and the effects of the Alstom
acquisition.
Revenues Profit
2014 $ 20.6 $ 4.5
Volume 0.8 0.2
Price 0.1 0.1
Foreign Exchange (0.8) (0.1)
(Inflation)/Deflation N/A 0.2
Mix N/A 0.1
Productivity N/A (0.4)
Other - -
Alstom 0.9 (0.1)
2015 $ 21.5 $ 4.5
2014 ± 2013 2014 ± 2013
Segment revenues up $1.3 billion (7%);
Segment profit up $0.2 billion (4%) as a result of:
x The increase in revenues was driven by higher volume,
primarily higher equipment sales at Gas Power Systems,
partially offset by lower prices and the impact of a stronger
U.S. dollar.
x The increase in profit was mainly due to the higher volume at
Gas Power Systems, and higher productivity reflecting a
reduction in SG&A cost, partially offset by negative business
mix, driven by higher gas turbine shipments, and lower
prices.
Revenues Profit
2013 $ 19.3 $ 4.3
Volume 1.7 0.4
Price (0.2) (0.2)
Foreign Exchange (0.1) -
(Inflation)/Deflation N/A 0.1
Mix N/A (0.2)
Productivity N/A 0.3
Other (0.2) (0.1)
2014 $ 20.6 $ 4.5
*Non-GAAP Financial Measure
Equipment
Services
GE 2015 FORM 10-K 39