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Ge Ar2007 Full Book

Ge Ar2007 Full Book

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Published by kirkhere
2007 GE annual report
2007 GE annual report

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Published by: kirkhere on May 07, 2014
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05/07/2014

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GE Annual Report 2007
Invest and Deliver Every Day
 
Delivering for You
152137124105
173
2003200420052006
2007
CONSOLIDATED REVENUES
(In $ billions)
Compoundedannual growthrate of 13%
19.417.415.613.3
22.5
2003200420052006
2007
EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGES
(In $ billions)
Compoundedannual growthrate of 14%
Third straight year of organic revenue growth of 2 to 3 times GDP growth
Earnings per share (EPS) of $2.20, an increase of 18%
Global revenue growth of 22%, more than half of revenues outside the U.S.
Orders growth of 18%
Equipment backlog of $49 billion, an increase of 54%; service backlog of $109 billion, an increase of 17%
Financial services assets growth of 16%
Free cash flow of $19 billion; industrial cash from operating activities growth of 15%
Dividend increase of 11%, 32
nd
 straight annual increase
$25.4 billion returned to investors through the dividend and stock buyback
One of five “Triple-A”-rated U.S. industrial companies
 
Note:
 Financial results from continuing operations unless otherwise noted
TOP TEN 2007 GROWTH FACTS ABOUT YOUR COMPANYCONTENTS
 1 Letter to Investors 12 Invest and Deliver Every Day 36 Governance 38 Citizenship 39 Financial Section 114 Corporate Management 116 Corporate Information
 
Housing was particularly challenged. After fueling consumer wealth for many years, U.S. housing prices declined for the first time in 40 years. Subprime lending standards and complex investment products with risks that were not clearly understood created a “hangover” for consumers and financial institutions. The environment we face today is a challenging one. How will the U.S. consumer respond to falling housing prices? Should we worry about inflation or recession or both? Can the global markets expand while the U.S. contracts? What impact will the U.S. election have? Will banks resume lending money again at normal levels when, and at what price? You could try to pick the perfect investment for this environ-ment, but it would be a challenge. Maybe it is in technology, or emerging markets, or commodities, or Treasury bills.Or, you could pick GE. A company leading in the essential themes of this global era. A high-performance company filled with strong businesses. A company dedicated to developing leaders. A company built to perform in good times and bad.One reason for my confidence is our performance. Even in these difficult markets, 2007 was another record-setting year. Revenues grew 14% to $173 billion. Earnings from continuing operations grew 16% to $22.5 billion. We generated record indus-trial cash flow, and returned $25.4 billion to investors through the dividend and stock buyback. We performed well against the operating metrics that we use to measure our progress. Organic revenue growth was 9%, surpassing our goal of growing at 2 to 3 times GDP growth. Earnings per share (EPS) from continuing operations grew 18%, well above our double-digit goal. Our operating profit margin grew 70 basis points, below our 100-basis-point goal, but we made good progress. Returns reached 18.9%, and we are on track for 20% in 2008. Industrial cash from operations grew 15%, well above our target, and our free cash flow was $19 billion. Can we continue to perform well in 2008? It will be challenging, as we expect U.S. consumer spending to slow and credit to tighten and be more expensive. However, GE is well-suited for this environment and any other. This is because we invest and deliver. We do this every day, every quarter, and every year.
To Our Investors, Bubbles burst and excess ends in an ugly fashion. The easy credit cycles that defined the recent past have given way to a tidal wave of financial crises. As I am writing, banks have written off almost $150 billion, entire classes of securities have disappeared, and rating agencies have been criticized. This transition — from easy credit to no liquidity — seemed to occur in the blink of an eye.

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