Daniel C. Janki
Vice President
Corporate Investor Communications
3135 Easton Turnpike
Fairfield, CT 06828
USA
May 2, 2006
T 203 373 2468
F 203 373 2071
dan.janki@ge.com
To the Investment Community,
GE released its first quarter results on April 13, 2006. Our first quarter financial results showed
double-digit growth in revenue, earnings and cash flow - with five of six businesses delivering doubledigit profits. We achieved 9% organic revenue growth, surpassing our goal of 8%. Orders were up a
strong 33%. We earned $.39 per share, an increase of 18%; we generated $37.8 billion in revenue, up
10%; and we grew our cash flow 132% to $6.7 billion. We had a number of standout performances
from segments such as Healthcare and Commercial Finance, and businesses such as Aviation,
Transportation and Consumer & Industrial. Looking ahead, we forecast that five of six businesses will
generate double-digit profit in the second quarter and earnings per share will grow 12-17%.
We are nearing the first anniversary of our ecomagination initiative and we are on track to reach our
goal of $20 billion in revenues by 2010. Customers have responded positively and estimated orders of
ecomagination products have nearly doubled, growing from $9 billion in 2004 to $17.5 billion in 2005.
We are sold out of wind turbines and solar energy panels. We have a deep backlog of nearly 1,600
Evolution locomotive orders and airlines around the world are ordering our GEnx and GE90-115B jet
engines. We are also on track to reach our internal ecomagination commitments: increasing our own
energy efficiency and reducing our emissions. Ecomagination draws on the strength of our portfolio
but it also succeeds because GE people are driving it forward.
We continue to make inroads with customers by providing new products and technology that meet
emerging needs. Starbucks recognized this when it recently became the first commercial purchaser
of CommerceGuard, GE's advanced-technology system for container security and tracking.
Starbucks is installing CommerceGuard on shipments of coffee beans originating in Guatemala,
bound for the U.S. and Europe. Equipment Services scored a huge win when Wal-Mart agreed to
equip its entire fleet of 46,000 truck trailers with GE VeriWise(tm) monitoring technology, which will
help Wal-Mart increase security and productivity and reduce transportation costs. The deal sets the
stage for further collaboration with Wal-Mart on supply-chain solutions.
Business Spotlights
GE Infrastructure
− CFM International, a 50/50 joint company between Snecma and GE, won multiple orders for
CFM56-5B -- Hamburg International placed $170 million order to purchase of CFM56-5B engines
to power 14 Airbus A319 aircraft; GoAir, India's newest low-cost carrier announced a $120 million
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order for CFM56-5B engines to power its new fleet of 10 firm and 10 option Airbus A320 family
aircraft; Southwest Airlines announced a $1 billion order (at list price) for CFM56-7B engines to
power 79 firm Boeing Next-Generation 737-700 aircraft; Singapore Aircraft Leasing Enterprise
(SALE) announced a firm order of approximately $140 million at list price for 10 more Boeing NextGeneration 737 aircraft powered by CFM56-7B engines. The deal also includes 10 options and 10
purchase rights.
GE Energy's PowerOn* product suite was selected by PPL Electric Utilities, a division of PPL
Corporation, as the enterprise outage management system (OMS) for its electric division,
replacing an internally developed program that has served the company for 30 years.
GE Energy recently completed seven gas turbine uprates at the SeoInchon combined-cycle power
plant in Inchon City, Korea. The project will result in a 180-megawatt increase in output for the
facility, which is owned by Korea Western Power Co., Ltd. (KOWEPO).
GE Energy and its Chinese joint venture partners, Harbin Power Equipment Company (HPEC) and
Nanjing Turbine & Electric Machinery Company (NTC), celebrated the opening of a new multimillion dollar facility that will offer advanced service and repair technologies for GE gas turbines
in China. Owned 51% by GE, 41% by HPEC and 8% by NTC, the new service center is the only
venture in China that can provide repair services for GE’s advanced technology 9FA gas turbines,
6B gas turbine fleet, and GE steam turbines and generators.
GE Energy will supply a Frame 6FA gas turbine-generator for the expansion of a combinedcycle/district heating plant in Zagreb, Croatia. Hrvatska Elektroprivreda d.d., the Croatian electric
power utility, is the owner of the plant while HEP-Proizvoidnja d.o.o. is the plant operator.
GE Energy Financial Services closed an expanded syndicated loan facility it structured for
Trinidad Drilling Ltd., a leading Canada-based drilling rig company. The facility represents a
combined debt capacity of CDN $494 million, increasing the principal available from a $250
million facility arranged last year. The facility is comprised of a CDN $250 million revolver, a CDN
$100 million five-year term facility, and, a US $125 million five-year term facility for Trinidad USA
LLLP, a U.S. subsidiary of Trinidad.
GE Energy Financial Services, PowerLight Corporation and Catavento Lda announced the world's
largest solar photovoltaic power project. The 11-megawatt solar power plant, comprising 52,000
photovoltaic modules, will be built at a single site in Serpa, Portugal, 200 kilometers (124 miles)
southeast of Lisbon in one of Europe's sunniest areas. GE Energy Financial Services will finance
and own the facility in a $75 million transaction.
GE Consumer Finance
− GE Consumer Finance's Retail Sales Finance unit and Yamaha Corporation of America announced
a new private label credit card offering through more than 1,400 Yamaha music dealers
nationwide beginning April 11, 2006.
− GE Consumer Finance's Retail Sales Finance announced a five-year agreement with Craft-Bilt
Manufacturing to provide a new consumer credit program that will enable customers to finance
sunrooms and awnings. The new Betterliving program includes revolving credit and installment
lending options.
− GE Consumer Finance's Retail Sales Finance unit today announced a new multi-year partnership
with Ultra Motorcycle Company Inc., to provide Ultra customers with installment financing for
their custom V-Twin engine motorcycles.
GE Healthcare
− GE Healthcare received U.S. Food and Drug Administration (FDA) approval for its new
mammography platform that will improve the standard of care for millions of women around the
world. The Senographe(R) Essential is the next-generation of GE's proven Senographe Full Field
Digital Mammography systems.
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GE Healthcare received clearance from the U.S. Food and Drug Administration for the company's
new wide bore computed tomography (CT) system. This new technology, the world's most
powerful 16-slice wide bore CT system, will be available in two configurations. The LightSpeed
RT16 enables advanced imaging for radiation therapy planning, and the LightSpeed Xtra is a
premium 16-slice CT scanner designed for radiology needs such as trauma, interventional and
bariatric procedures.
GE Commercial Finance
− GE Commercial Finance - Technology Lending, a unit of Global Media & Communications, in
conjunction with GE Energy Financial Services, extended a loan facility of $2.6 million (GBP 1.5
million) to UK-based Ocean Power Delivery, Ltd. (OPD), developer of the world's first commercial
facility that will generate electricity from offshore ocean waves.
− GE Commercial Finance - Technology Lending, a unit of Global Media & Communications,
provided a credit facility totaling $1.5 million for Syntricity Inc., a San Diego-based provider of
enterprise yield management software for the semiconductor industry.
− GE Commercial Finance - Global Media & Communications closed a deal to provide senior
financing to SV Investment Partners ("SV"), and its affiliate, GE Capital Markets, arranged
mezzanine financing for SV as part of SV's acquisition of Pennysaver Group, Inc., a leading
publisher of freely distributed shopper magazines. With GE's financial backing, SV is acquiring
Pennysaver from Seaport Capital. The deal closed on Wednesday, April 5, 2006.
− GE Antares Capital today announced that it is sole lead arranger and bookrunner of a $202
million senior secured credit facility for Farley's & Sathers Candy Co., a leading branded candy
manufacturer.
NBC Universal
− NBC Universal announced that it has formed the Technology Growth Center (TGC), a central
technology division, dedicated to facilitating new business opportunities in digital media
− “Inside Man” starring Denzel Washington and Judy Foster continued to perform well on box
office. The movie grossed over $95 MM worldwide since its release on March 24, 2006.
− “United 93” ranked #2 during its debut on the weekend of April 28th. The movie grossed over
$11MM during its first weekend on the box office.
GE Industrial
− GE Advanced Materials, Silicones announced a new, and first completely formulated, pressure
sensitive adhesive (PSA) based on SPUR+ technology. The new product is named SPUR+ 2000 PSA
and it is an excellent candidate for the manufacture of high-performance labels, tapes and
decals.
− GE Fanuc Automation, Inc, a unit of GE Industrial, announced that Evergreen Solar, a developer
and manufacturer of solar power products with its proprietary string ribbon technology, chose a
Proficy(TM) Plant Applications Manufacturing Execution System (MES) solution for its EverQ
production facility currently under construction in Thalheim, Germany. EverQ GmbH is a joint
venture between Evergreen Solar, German solar cell manufacturer Q-Cells AG, and silicon and
wafer manufacturer Renewable Energy Corporation ASA.
− GE's Innovative Lexan(1) Polycarbonate Sheet Now Graces Both Main Roof & Boarding Platform
Roof of Shanghai South Railway Station, the largest roof of its kind in the world.
Citizenship & Ecomagination
− General Electric and Greater Philadelphia Cares extended their 10-year relationship in a new
effort to boost literacy among grade school-aged children in Philadelphia. GE has issued a
$250,000 grant to fund the organization's Reading STARS program, a proven, volunteer-driven
one-on-one tutoring program offered to boost the core classroom curriculum within the School
District of Philadelphia. "A lifetime of learning begins with strong reading skills," said GE CEO Jeff
Immelt, who joined Greater Philadelphia Cares CEO Lissa Hilsee at Sheppard Elementary School
to announce the grant.
− GE has certified for official ecomagination status its NXT silane family of breakthrough coupling
agents that are used in the production of silica tires to improve manufacturing efficiency and
reduce emissions. NXT silanes met the environmental and operating performance criteria for
GE's ecomagination initiative, in part, by demonstrating the ability to help tire companies
streamline their manufacturing processes in ways that reduce material, equipment, labor and
energy costs. In addition, NXT Low V* silanes make it possible to significantly reduce the emission
of volatile organic compounds (VOCs) in both the manufacturing and use of silica tires. Future
generation NXT silanes are expected later this year.
* Trademarks of GE
Upcoming Calendar
*May 4, 2006, 8:30 AM: GE Technology & Services Meeting (NYC)
*May 10, 2006, 3:50 PM: Claudi Santiago at Merrill Lynch Conference (London)
May 24, 2006: Jeff Immelt at EPG Conference
*Meetings will be webcast. Webcast replays are retained on our web site for 14 days.
NBCU Film Release Schedule
June 2: The Breakup (Vince Vaughn, Jennifer Aniston)
June 16: The Fast and The Furious – Tokyo Drift (Lucas Black, Bow Wow)
Please see our calendar of events on www.ge.com/investor for more information on these
meetings.
Regards,