OREANDA-NEWS. GE [NYSE: GE] announced today fourth-quarter 2013 operating earnings of USD 5.4 billion, with earnings per share of USD 0.53, up 20% from the fourth quarter of 2012. GAAP earnings from continuing operations were USD 5.0 billion, with earnings per share of USD 0.49, up 20%. Revenues were USD 40.4 billion for the quarter, up 3% from the year-ago period, and USD 146.0 billion for the year.

“GE ended the year with strong fourth-quarter earnings and margin growth in an improving but mixed environment,” said GE Chairman and CEO Jeff Immelt. “We saw good conditions in growth markets, strength in the U.S., and a mixed environment in Europe. We had strong operating performance for the year and are pleased with our execution in 2013, taking USD 1.6 billion of cost out, growing margins, reducing the size of GE Capital, and returning more than USD 18 billion to shareholders.“

Industrial segment profits rose 12% to USD 5.5 billion. Six of seven Industrial segments had positive earnings growth. Industrial segment margins improved 100 basis points over the prior-year period. Infrastructure orders for the quarter were USD 30.7 billion, up 8%. GE’s backlog of equipment and services at the end of the quarter was its highest ever at USD 244 billion, up USD 15 billion from the third quarter. Industrial segment revenues grew 6%, with organic growth of 5%. Growth market revenues were up 10% for the quarter, with double-digit growth in six of nine growth regions, and growth market orders were up 13%. Services revenue grew 6%, with gains in most segments.

During the quarter, GE and CFM (a 50/50 joint venture between GE and Snecma) announced Dubai Airshow wins of more than USD 40 billion at list price, including GE’s largest airline commitment ever, valued at USD 11 billion at list price, for 300 GE9X engines for Emirates. GE also announced a nearly USD 700 million contract with Saudi Electricity Company for F-class combined-cycle gas turbines and services, and was awarded 545 megawatts of commitments for wind turbines in Brazil’s A-3 auction. GE’s investment in research & development continued to yield new products in 2013, including the release of 14 new Industrial Internet technologies to help airlines, energy companies, hospitals and other customers cut downtime, improve productivity, save fuel and reduce emissions.

GE Capital continued to execute on its strategy of becoming a smaller, more focused financial services business. GE Capital earnings rose 38% including gains from the IPO of our Swiss consumer business, and the BAY disposition. ENI (excluding cash and equivalents) was USD 380 billion at quarter-end. Volume was up 5% for the quarter, with attractive returns. General Electric Capital Corporation’s (GECC) estimated Tier 1 common ratio (Basel 1) rose 1.2% to 11.4%, and net interest margin was strong at 5%. During the quarter, GECC paid USD 2 billion in dividends to the parent.

Full-year cash from GE operating activities (CFOA), excluding NBCUniversal deal-related taxes, was USD 17.4 billion. GE ended the quarter with USD 89 billion of consolidated cash and cash equivalents. GE’s strong cash performance for the quarter and the year supported its balanced capital allocation plan. The Company returned USD 18.2 billion to shareowners in 2013, including USD 7.8 billion of dividends and USD 10.4 billion of stock buyback. During the quarter, GE announced a 16% increase in its quarterly dividend to USD 0.22 per share, the fifth increase in just over three years. GE also completed USD 9 billion of acquisitions in 2013.

GE made a number of investments in the quarter to strengthen the company in 2014 and beyond. The Company recorded USD 0.05 per share of Industrial restructuring and other charges, partially offset by USD 0.03 per share of Industrial gains. This, and other moves, should allow GE to increase its planned cost-out efforts in 2014 to more than USD 1 billion. GE Capital strengthened its balance sheet, reduced non-core assets and took portfolio actions to decrease ENI, per the Company’s plan.

Immelt concluded, “GE ended the year with great strength. We are well positioned to achieve our framework for 2014.”

Fourth-quarter and Full-year 2013 Highlights:

Fourth-quarter operating earnings were USD 5.4 billion, up 16% from fourth-quarter 2012, and operating EPS was USD 0.53, up 20%. GAAP earnings from continuing operations (attributable to GE) were USD 5.0 billion, up 16%, or USD 0.49 per share, up 20% from the fourth quarter of 2012.

Including the effects of discontinued operations, fourth-quarter net earnings attributable to GE were USD 4.2 billion (USD 0.41 per share) in 2013 compared with USD 4.0 billion (USD 0.38 per share) in the fourth quarter of 2012. This included Grey Zone charges of USD 0.04 per share, WMC charges of USD 0.01 per share, and charges for a disposition in Russia of USD 0.02 per share.

Fourth-quarter revenues increased 3% to USD 40.4 billion. Industrial sales of USD 28.8 billion increased 6% compared to the fourth quarter of 2012. GECC revenues of USD 11.1 billion decreased 5% from last year.

Full-year operating earnings were USD 16.9 billion, up 5%, from USD 16.0 billion in 2012, and operating EPS was USD 1.64, up 9% from USD 1.51 in 2012. GAAP earnings from continuing operations (attributable to GE) were USD 15.2 billion, or USD 1.47 per share, up 4% and 7% respectively from 2012.
Including the effects of discontinued operations, full-year net earnings attributable to GE were USD 14.1 billion (USD 1.36 per share) in 2013 compared with USD 13.6 billion (USD 1.29 per share attributable to common shareowners) in 2012.

Full-year revenues were USD 146.0 billion, flat with last year. Industrial sales of USD 101.0 billion were flat with last year. GECC revenues of USD 44.1 billion were down 3% from 2012.

Cash generated from GE operating activities in 2013 totaled USD 17.4 billion excluding USD 3.2 billion of NBCUniversal deal-related taxes. Cash generated from Industrial operating activities, excluding the NBCUniversal deal-related taxes, totaled USD 11.5 billion.

The accompanying tables include information integral to assessing the Company’s financial position, operating performance and cash flow.