“Despite a volatile environment, our fundamentals remain very strong, as we achieved double-digit earnings growth across all six of our businesses,” said GE Chairman and CEO Jeff Immelt. “Our businesses are generating solid top and bottom line growth. We increased revenue by 9% to $41.9 billion and produced another record for earnings in the quarter with $4.7 billion, an increase of 15%. “This was our third consecutive quarter of 8% organic revenue growth. We continue to optimize our growth initiatives for sustained and consistent performance,” Immelt said. “Orders were up 11%, services sales increased 9%, revenue from accelerating growth platforms, such as Healthcare IT and Oil & Gas, grew 24% , and we generated strong double-digit global revenue growth from markets such as China and Europe. “We delivered EPS at the high end of our previous guidance despite incurring over $377 million of hurricane-related reinsurance losses,” said Immelt. “Even in the face of significant natural disasters, our team once again delivered on our financial commitment to shareowners. “Year-to-date cash flow from operating activities increased 51%. For the full year 2005, we expect to generate approximately $20 billion in CFOA, up more than 30%,” Immelt said. “Because of this strong position, we increased our planned stock buyback from $3 billion to more than $4 billion for 2005, which puts us ahead in our three-year $15 billion buyback schedule. We will continue to explore additional ways to return cash to investors.” Third Quarter 2005 Financial Highlights — Earnings were a record $4.677 billion, up 15% from last year’s $4.071 billion. EPS grew 16% to $.44, compared with last year’s $.38 per share. All six of GE’s businesses – Commercial Finance, Consumer Finance, Healthcare, Industrial, Infrastructure and NBC Universal – contributed double-digit earnings growth. — Revenues of $41.9 billion were 9% higher than last year’s $38.3 billion. Industrial sales increased 8% (excluding the effects of the 2004 Summer Olympics broadcasts at NBCU) to $21.6 billion; and were up 3% including the ’04 Olympics. Financial services revenues of $20.4 billion were up 16% over last year. Organic revenue growth was 8%. — Cash generated from GE’s operating activities (CFOA) in the first nine months of 2005 was $14.7 billion, up 51% over last year’s $9.7 billion, reflecting a 20% increase in CFOA from industrial businesses. The GE Capital Services’ dividend of $5.5 billion for the nine months was up $3.4 billion over last year. “We are carrying our momentum into the fourth quarter,” said Immelt. “Our six businesses are aligned to better serve our customers. We are operating with greater efficiency, and we are identifying innovative ways to utilize our full portfolio of assets to offer new products and services. “We raised the lower end of our full year 2005 guidance from $1.80 to $1.81, for a full year EPS outlook range of $1.81-1.83, an increase of 12-14%. We see $.56-.58 EPS in 4Q ’05, up 10-14% (excluding the previously announced SFAS 133-related correction to the 4Q 2004), and up 6-9% as reported. And we expect organic revenue growth to hit our target of 8% for the full year,” said Immelt. “With our stable asset quality and continued strong orders, we are well positioned for a strong finish to the year and solid double-digit growth into 2006. Third Quarter 2005 Highlights — Revenues up 9% to $41.9 billion, with 8% organic revenue growth — Earnings of $4.7 billion up 15% — Earnings per share (EPS) of $.44 up 16% — All six GE businesses deliver double-digit earnings growth — Cash flow from operating activities (CFOA) up 51% to $14.7 billion, industrial CFOA up 20% — Full-year EPS target now $1.81-$1.83, up 12-14% — Stock buyback increased to more than $4 billion for 2005
