GE Chairman and CEO Jeff Immelt said today that GE's third-quarter 2002 earnings of $4.1 billion, or U.S. $0.41 per share, increased 25 percent over third quarter 2001, and year-to-date cash flow from operations, excluding progress collections, increased 16 percent.
"GE delivered 41 cents per share and strong cash flow growth in what continues to be a more difficult economic environment than anticipated," Mr. Immelt said. "We are managing through a variety of short-term challenges at some of our businesses. However, in total, GE continues to deliver. This is a tribute to the strength of the GE business model - a great set of leading businesses with strong growth capability and exceptional cash discipline."
Earnings rose 25 percent to $4.087 billion from $3.281 billion in third quarter 2001, and earnings per share (EPS) increased 24 percent to $0.41 from $0.33 last year. Comparisons reflect charges in third quarter 2001 of approximately $400 million for Sept. 11-related reinsurance losses.
As required by new accounting rules, as of Jan. 1, 2002, goodwill is no longer amortized. Without goodwill amortization in third quarter 2001, EPS in third quarter 2002 would have increased 14 percent; adjusted for two significant non-cash items, goodwill and pension income, EPS would have increased 19 percent.
GE Consumer Products
GE Consumer Products, the new division formed in August with the merging of GE Appliances and GE Lighting, showed total revenues of $2.116 billion for the third quarter of 2002, compared to $2.153 billion for the third quarter of 2001. Year to date the Consumer Products combined businesses showed revenues of $6.236 billion for 2002, compared to $6.124 billion in 2001.
The appliances segment of Consumer Products showed third quarter 2002 revenues of $1.540 billion, compared to $1.535 billion in third quarter 2001. Appliance business 2002 year-to-date revenues were $4.554 billion, compared to $4.252 in 2001.
GE Medical Systems (GEMS)
GE Medical Systems (GEMS) revenues grew 7 percent to $2.1 billion, as some U.S. and Asia projects and financing approvals were extended into future quarters. Demand for new GEMS technology drove third quarter orders up 11 percent, to $2.5 billion. The new GE Voluson™ 730 4D and GE LOGIQBook™ Portable Ultrasound System led ultrasound order growth of 20 percent, or $185 million. The GE Lightspeed16, GE's 16-slice CT (computed tomography) scanner, drove CT orders 12 percent to more than $300 million. MR (magnetic resonance) orders, led by new GE EXCITE MRI systems, grew 9 percent to more than $305 million. X-Ray orders, fueled by demand for the GE Innova digital cardiac X-ray system, grew 12 percent to more than $305 million. Orders for healthcare information technology systems grew 43 percent to more than $325 million.
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