proprietary material for authorized cwa use only. this material may not be reproduced, distributed,...

Proprietary material for authorized CWA use only. This material may not be reproduced, distributed, or used without permission from CWA.

Quick Overview

• Rank #7 in Fortune 500 in terms of revenues ($15 billion)

• If ranked separately, all of GE segments would appear on Fortune 500

• 1899-2006: 108 consecutive years of growth

• $51,750 = profit per employee (2005)

• “Most Admired Company” (Fortune Magazine)

• AAA credit rating

• Sole company from original Dow Jones Industrial Average

• 5 million shareowners


Six Operating Segments

• GE Infrastructure

• GE Industrial

• GE Healthcare

• NBC Universal

• GE Commercial Finance

• GE Money


Many Businesses

• GE Infrastructure– Aviation

– Aviation Financial Services

– Energy

– Energy Financial Services

– Oil & Gas

– Transportation

• GE Healthcare

• NBC Universal

• GE Commercial Finance– Capital Solutions

– Real Estate

• GE Money

• GE Industrial – (Advanced Materials)

– Consumer & Industrial

• Appliances

• Electrical Distribution Systems

• Lighting

– Equipment Services

– Fanuc Automation

– Inspection Technologies

– Plastics

– Security

– Sensing


Revenues Show Steady Increase

$163.4$147.9

$134.5

$112.9 $113.9$107.6

2006 2005 2004 2003 2002 2001

GE Consolidated Revenues ($ billion)


47% Increase in Revenues per Employee Over 6 Years

$510,597$473,741

$438,049

$370,118 $361,448$346,960

2006 2005 2004 2003 2002 2001

Note: 2006 is estimated (based on assumption of 320,000 employees)


High Profits Plateau, Then Jump in 2006

$20.8

$16.7 $16.8$15.2 $14.2

$13.8

2006 2005 2004 2003 2002 2001

GE Net Earnings ($ billion)


Profits per Employee Increase Slowly, Then Jump in 2006

$65,090

$51,750$54,785

$49,954$44,975

$44,487

2006 2005 2004 2003 2002 2001

Note: 2006 is estimated (based on assumption of 320,000 employees)


GE Infrastructure Revenues and Profits

$47.4

$41.8

$37.4$36.6

$40.1

$36.4

2006 2005 2004 2003 2002 2001

Infrastructure Revenues ($ billion)

$9.0

$7.8

$6.8

$7.4

$9.2

$7.9

2006 2005 2004 2003 2002 2001

Infrastructure Profit($ billion)


GE Industrial Revenues and Profits

$33.5

$32.6

$30.7

$25.0

$26.2$26.1

2006 2005 2004 2003 2002 2001

Industrial Revenues($ billion)

$2.7 $2.6

$1.8

$1.4

$1.8

$2.6

2006 2005 2004 2003 2002 2001

Industrial Profit($ billion)


GE Healthcare Revenues and Profits

$16.6$15.2

$13.5

$10.2$9.0 $8.4

2006 2005 2004 2003 2002 2001

Healthcare Revenues($ billion)

$3.1$2.7

$2.3

$1.7 $1.5 $1.5

2006 2005 2004 2003 2002 2001

Healthcare Profit($ billion)


NBC Universal Revenues and Profits

$16.2$14.7

$12.9

$6.9 $7.1$5.8

2006 2005 2004 2003 2002 2001

NBC U Revenues($ billion)

$2.9$3.1

$2.6

$2.0 $1.7$1.4

2006 2005 2004 2003 2002 2001

NBC U Profit($ billion)


GE Commercial Finance Revenues and Profits

$23.8 $20.6$19.5

$16.9$15.7

$14.6

2006 2004 2002

Commercial Finance Revenues ($ billion) $5.0

$4.3

$3.6

$2.9

$2.2$1.8

2006 2005 2004 2003 2002 2001

Commercial Finance Profit($ billion)


GE Money Revenues and Profits

$21.8$19.4

$15.7

$12.8

$10.3$9.5

2006 2004 2002

Consumer Finance Revenues($ billion)

$3.5

$3.0$2.5

$2.2$1.8 $1.6

2006 2005 2004 2003 2002 2001

Consumer Finance Profit($ billion)


GE Employees

Total Employees GE

310,000315,000305,000307,000316,000

2005 2004 2003 2002 2001

U.S. and Non-U.S. Employees GE

130,000

140,000

150,000

160,000

170,000

2005 2004 2003 2002 2001

U.S. Non-U.S.


GE Pension Plan

2005 2004 2003 2002 2001

Assets ($ millions) $49,096 $46,665

$43,879

$37,811

$45,006

Liabilities ($ millions)

$43,331 $39,969

$37,827

$33,266

$30,423

Funding Ratio 113% 114% 116% 114% 148%

• No company contributions since 1987

• Last pension increase in 2000

• Bargaining 2003: 13th month check


Stock Price

GE Stock Price Since September 2001

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

9/7/01 3/7/02 9/7/02 3/7/03 9/7/03 3/7/04 9/7/04 3/7/05 9/7/05 3/7/06 9/7/06

September 7, 2001: $39.66

January 19, 2007: $36.95


Executive Compensation

• Top executives made over $382.2 million 2001 through 2005

– Five named executives listed in proxy statement (6 in 2001 only)

• Pay for non-performance?

– GE stock price down 6.8% (9/7/2001 – 1/19/2007)

– S&P increased 31.74% (9/7/2001 – 1/19/2007)

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