GE reports record third-quarter 2005 financial results
16 October 2005
Fairfield, Conn. USA. GE's third-quarter 2005 earnings were a record $4.7
billion, 15% higher than last year's third quarter. Healthcare increased
total orders 8% over third quarter 2004 to $3.7 billion.
- 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.
"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 healthcare business highlights
- Announced agreement to acquire IDX Systems Corporation, a leader in
information technology software.
- Increased total orders 8% over third quarter 2004 to $3.7 billion,
driven by 9% growth in services, to $1.4 billion, and 7% growth in
equipment, to $2.3 billion.
- Grew equipment with strength in computed tomography (CT), ultrasound,
and nuclear orders with strong demand for Imagination Breakthrough
products, including more than $200 million in orders for the
LightSpeed(TM) Volume CT scanner.
- Grew Services with strength in Core Services and PACS (picture
archiving and communications systems).
- Signed an exclusive marketing agreement with InSightec Image Guided
Treatment Ltd. to sell devices, which non-invasively treat uterine
For further information
See full financial statement
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