<PAGE>
1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended SEPTEMBER 30, 1994
------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 1-35
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GENERAL ELECTRIC COMPANY
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(Exact name of registrant as specified in its charter)
New York 14-0689340
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3135 Easton Turnpike, Fairfield, CT 06431-0001
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(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (203) 373-2459
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(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes x No
--- ---
There were 1,709,660,247 shares of common stock, par value of $0.32
per share, outstanding at September 30, 1994.
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2
Part I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Condensed Statement of Earnings
General Electric Company and consolidated affiliates
(Dollars, except per-share amounts, in millions)
<TABLE>
<CAPTION>
Third quarter ended September 30 (Unaudited)
--------------------------------------------------------------------------
Consolidated GE GECS
----------------------- ---------------------- ---------------------
1994 1993 1994 1993 1994 1993
---------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Sales of goods $7,414 $6,906 $7,419 $6,909 $ - $ -
Sales of services 1,952 1,865 1,965 1,870 - -
Net earnings of GECS - - 526 493 - -
GECS revenues from operations 6,597 5,898 - - 6,618 5,919
Other income 190 189 188 191 - -
---------- ---------- ---------- ---------- ---------- ----------
Total revenues 16,153 14,858 10,098 9,463 6,618 5,919
---------- ---------- ---------- ---------- ---------- ----------
Cost of goods sold 5,532 5,222 5,537 5,225 - -
Cost of services sold 1,393 1,351 1,406 1,356 - -
Interest and other financial charges 2,595 2,016 121 125 2,476 1,896
Insurance losses and policyholder and annuity benefits 1,089 809 - - 1,089 809
Provision for losses on financing receivables 186 200 - - 186 200
Other costs and expenses 3,387 3,288 1,243 1,178 2,161 2,128
Minority interest in net earnings of
consolidated affiliates 33 62 8 9 25 53
---------- ---------- ---------- ---------- ---------- ----------
Total costs and expenses 14,215 12,948 8,315 7,893 5,937 5,086
---------- ---------- ---------- ---------- ---------- ----------
Earnings before income taxes 1,938 1,910 1,783 1,570 681 833
Provision for income taxes (570) (704) (415) (364) (155) (340)
---------- ---------- ---------- ---------- ---------- ----------
Net earnings $1,368 $1,206 $1,368 $1,206 $526 $493
========== ========== ========== ========== ========== ==========
Net earnings per share -a) $0.80 $0.71
Dividends declared per share -a) $0.36 $0.315
<FN>
(a-1993 data have been adjusted to reflect the two-for-one stock split effective on April 28, 1994.
See notes to Condensed Consolidated Financial Statements. Consolidating data are shown for "GE" and "GECS." Transactions between GE
and GECS have been eliminated from the "consolidated" columns.
</TABLE>
<PAGE>
3
Condensed Statement of Earnings
General Electric Company and consolidated affiliates
<TABLE>
<CAPTION>
(Dollars, except per-share amounts, in millions) Nine months ended September 30 (Unaudited)
--------------------------------------------------------------------------
Consolidated GE GECS
----------------------- ---------------------- ---------------------
1994 1993 1994 1993 1994 1993
---------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Sales of goods $21,132 $20,249 $21,149 $20,260 $ - $ -
Sales of services 6,505 5,940 6,537 5,955 - -
Net earnings of GECS - - 1,319 1,358 - -
GECS revenues from operations 18,365 15,746 - - 18,434 15,811
Other income 529 540 529 546 - -
---------- ---------- ---------- ---------- ---------- ---------
Total revenues 46,531 42,475 29,534 28,119 18,434 15,811
---------- ---------- ---------- ---------- ---------- ---------
Cost of goods sold 15,506 15,626 15,523 15,637 - -
Cost of services sold 4,665 4,629 4,697 4,644 - -
Interest and other financial charges 7,126 5,314 316 426 6,820 4,903
Insurance losses and policyholder and annuity benefits 2,561 2,046 - - 2,561 2,046
Provision for losses on financing receivables 607 747 - - 607 747
Other costs and expenses 10,261 9,511 3,697 3,610 6,623 5,957
Minority interest in net earnings of consolidated
affiliates 120 111 21 13 99 98
---------- ---------- ---------- ---------- ---------- ---------
Total costs and expenses 40,846 37,984 24,254 24,330 16,710 13,751
---------- ---------- ---------- ---------- ---------- ---------
Earnings from continuing operations before
income taxes and accounting change 5,685 4,491 5,280 3,789 1,724 2,060
Provision for income taxes (1,727) (1,544) (1,322) (842) (405) (702)
---------- ---------- ---------- ---------- ---------- ---------
Earnings from continuing operations before
accounting change 3,958 2,947 3,958 2,947 1,319 1,358
---------- ---------- ---------- ---------- ---------- ---------
Earnings from discontinued operations (net of
income taxes of $44) - 75 - 75 - -
Gain on transfer of discontinued operations
(net of income taxes of $752) - 678 - 678 - -
---------- ---------- ---------- ---------- ---------- ---------
Earnings from discontinued operations - 753 - 753 - -
---------- ---------- ---------- ---------- ---------- ---------
Earnings before accounting change 3,958 3,700 3,958 3,700 1,319 1,358
Accounting change - cumulative effect to
January 1, 1993, of postemployment benefits - (862) - (862) - -
---------- ---------- ---------- ---------- ---------- ---------
Net earnings $3,958 $2,838 $3,958 $2,838 $1,319 $1,358
========== ========== ========== ========== ========== =========
Net earnings per share -a)
Continuing operations $2.32 $1.73
Discontinued operations - 0.44
---------- ----------
Earnings before accounting change 2.32 2.17
Cumulative effect of change in accounting for
postemployment benefits - (0.51)
---------- ----------
Net earnings per share $2.32 $1.66
========== ==========
Dividends declared per share -a) $1.08 $0.945
========== ==========
<FN>
(a- 1993 data have been adjusted to reflect the two-for-one stock split effective on April 28, 1994.
See notes to Condensed Consolidated Financial Statements. Consolidating data are shown for "GE" and "GECS." Transactions between GE
and GECS have been eliminated from the "consolidated" columns.
</TABLE>
<PAGE>
4
Condensed Statement of Financial Position
General Electric Company and consolidated affiliates
<TABLE>
<CAPTION>
(Dollars in millions) Consolidated GE GECS
----------------------- ---------------------- ----------------------
9/30/94 12/31/93 9/30/94 12/31/93 9/30/94 12/31/93
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Cash and equivalents $3,343 $3,218 $1,745 $1,536 $1,598 $1,682
GECS trading securities 19,971 30,165 - - 19,971 30,165
Investment securities 27,010 26,811 138 19 26,872 26,792
Securities purchased under agreements to resell 45,569 43,463 - - 45,569 43,463
Current receivables 7,829 8,195 8,047 8,561 - -
Inventories 4,670 3,824 4,670 3,824 - -
GECS financing receivables - net 70,599 63,948 - - 70,599 63,948
Other GECS receivables 18,447 15,616 - - 18,560 15,799
Property, plant and equipment (including equipment
leased to others) - net 22,806 21,228 9,552 9,542 13,254 11,686
Investment in GECS - - 10,386 10,809 - -
Intangible assets 10,794 10,364 6,298 6,466 4,496 3,898
All other assets 23,835 24,674 12,225 10,377 11,610 14,297
---------- ---------- ---------- ---------- ---------- ----------
Total assets $254,873 $251,506 $53,061 $51,134 $212,529 $211,730
========== ========== ========== ========== ========== ==========
Short-term borrowings $59,879 $62,135 $3,368 $2,391 $56,755 $60,003
Accounts payable 13,732 11,956 2,811 2,331 11,099 9,885
Securities sold under agreements to repurchase 49,773 56,669 - - 49,773 56,669
Securities sold but not yet purchased, at market 16,021 15,332 - - 16,021 15,332
Other GE current liabilities 8,723 9,637 8,723 9,637 - -
Long-term borrowings 35,810 28,270 2,675 2,413 33,165 25,885
Insurance reserves and annuity benefits 24,817 22,909 - - 24,817 22,909
All other liabilities 12,159 12,009 8,033 8,482 4,005 3,529
Deferred income taxes 5,147 5,109 188 (299) 4,959 5,408
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities 226,061 224,026 25,798 24,955 200,594 199,620
---------- ---------- ---------- ---------- ---------- ----------
Minority interest in equity of consolidated
affiliates 1,936 1,656 387 355 1,549 1,301
---------- ---------- ---------- ---------- ---------- ----------
Common stock (1,853,128,000 shares issued) -a) 593 584 593 584 11 1
Other capital 447 1,398 447 1,398 1,309 2,596
Retained earnings 30,723 28,613 30,723 28,613 9,066 8,212
Less common stock held in treasury (4,887) (4,771) (4,887) (4,771) - -
---------- ---------- ---------- ---------- ---------- ----------
Total share owners' equity 26,876 25,824 26,876 25,824 10,386 10,809
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities and equity $254,873 $251,506 $53,061 $51,134 $212,529 $211,730
========== ========== ========== ========== ========== ==========
<FN>
(a- Adjusted to reflect the two-for-one stock split effective on April 28, 1994.
See notes to Condensed Consolidated Financial Statements. September data are unaudited. Consolidating data are shown for "GE" and
"GECS." Transactions between GE and GECS have been eliminated from the "consolidated" columns.
</TABLE>
<PAGE>
5
Condensed Statement of Cash Flows
General Electric Company and consolidated affiliates
<TABLE>
<CAPTION>
(Dollars in millions) Nine months ended September 30 (Unaudited)
-------------------------------------------------------------------------
Consolidated GE GECS
----------------------- ---------------------- ----------------------
1994 1993 1994 1993 1994 1993
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Cash flows from operating activities
- ------------------------------------
Net earnings $3,958 $2,838 $3,958 $2,838 $1,319 $1,358
Less earnings from discontinued operations - (753) - (753) - -
Adjustments to reconcile net earnings to cash
provided from (used for) continuing operating activities
Cumulative effect of accounting change - 862 - 862 - -
Depreciation, depletion and amortization 2,324 2,230 1,106 1,122 1,218 1,108
Earnings retained by GECS - - (864) (898) - -
Deferred income taxes 1,015 (55) 497 132 518 (187)
Decrease (increase) in GE current receivables 366 141 514 (393) - -
Decrease (increase) in GE inventories (846) (180) (846) (180) - -
Increase (decrease) in accounts payable 1,196 1,617 480 (97) 634 2,162
Increase in insurance reserves 687 1,196 - - 687 1,196
Provision for losses on financing
receivables 607 747 - - 607 747
Net change in certain broker-dealer accounts 1,881 (3,145) - - 1,881 (3,145)
All other operating activities (4,348) 483 (2,235) (72) (2,151) 628
---------- ---------- ---------- ---------- ---------- ----------
Net cash provided from continuing operations 6,840 5,981 2,610 2,561 4,713 3,867
Net cash provided from discontinued operations - 76 - 76 - -
---------- ---------- ---------- ---------- ---------- ----------
Cash provided from operating activities 6,840 6,057 2,610 2,637 4,713 3,867
---------- ---------- ---------- ---------- ---------- ----------
Cash flows from investing activities
- ------------------------------------
Property, plant and equipment (including
equipment leased to others) - additions (4,777) (3,750) (1,115) (990) (3,662) (2,760)
Net (increase) decrease in GECS financing receivables (6,335) (953) - - (6,335) (953)
Payments for principal businesses purchased (1,874) (2,046) (560) - (1,314) (2,046)
All other investing activities 3,733 (815) (3) 102 3,721 (831)
---------- ---------- ---------- ---------- ---------- ----------
Cash provided from (used for) investing activities
- Continuing operations (9,253) (7,564) (1,678) (888) (7,590) (6,590)
- Discontinued operations - 1,230 - 1,230 - -
---------- ---------- ---------- ---------- ---------- ----------
Cash provided from (used for) investing activities (9,253) (6,334) (1,678) 342 (7,590) (6,590)
---------- ---------- ---------- ---------- ---------- ----------
Cash flows from financing activities
- ------------------------------------
Net change in borrowings (maturities 90 days or less) (4,472) (1,459) 1,238 727 (5,723) (2,259)
Newly issued debt (maturities more than 90 days) 18,118 11,111 676 172 17,442 10,939
Repayments and other reductions (maturities
more than 90 days) (9,258) (7,619) (675) (1,592) (8,583) (6,027)
Disposition of GE shares from treasury 441 260 441 260 - -
Purchase of GE shares for treasury (557) (622) (557) (622) - -
Dividends paid to share owners (1,846) (1,616) (1,846) (1,616) (455) (460)
All other financing activities 112 32 - - 112 32
---------- ---------- ---------- ---------- ---------- ----------
Cash provided from (used for) financing activities 2,538 87 (723) (2,671) 2,793 2,225
---------- ---------- ---------- ---------- ---------- ----------
Increase (decrease) in cash and cash equivalents 125 (190) 209 308 (84) (498)
Cash and cash equivalents at beginning of year 3,218 3,129 1,536 1,189 1,682 1,940
---------- ---------- ---------- ---------- ---------- ----------
Cash and equivalents at September 30 (Unaudited) $3,343 $2,939 $1,745 $1,497 $1,598 $1,442
========== ========== ========== ========== ========== ==========
<FN>
See notes to Condensed Consolidated Financial Statements. Consolidating data are shown for "GE" and GECS." Transactions between GE
and GECS have been eliminated from the "consolidated" columns.
</TABLE>
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6
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying condensed quarterly financial statements
represent the consolidation of General Electric Company and all companies
in which it directly or indirectly has a majority ownership or otherwise
controls. Reference is made to note 1 to the consolidated financial
statements included in the Company's Annual Report on Form 10-K for the
year ended December 31, 1993. That note discusses consolidation and
financial statement presentation. As used in this Report and in the Report
on Form 10-K, "GE" represents the adding together of all affiliated
companies except General Electric Capital Services, Inc. ("GECS"), which is
presented on a one-line basis; GECS consists of General Electric Capital
Services, Inc. and all of its affiliates; and "consolidated" represents the
adding together of GE and GECS with the effects of transactions between the
two eliminated. Consolidating data are shown for GE and GECS.
2. On April 2, 1993, General Electric Company transferred to a new
company, controlled by the shareholders of Martin Marietta Corporation,
GE's Aerospace business segment; GE Government Services, Inc.; and an
operating component of GE that operated Knolls Atomic Power Laboratory
under a contract with the U.S. Department of Energy. As part of the
transaction, GE also transferred the assets and business of the Lakeland
Accounting Center. Results of the businesses which were transferred have
been classified as discontinued operations in the 1993 Condensed Statement
of Earnings and Condensed Statement of Cash Flows.
3. Statement of Financial Accounting Standards (SFAS) No. 112,
Employers' Accounting for Postemployment Benefits, was adopted during the
second quarter of 1993, effective January 1, 1993. SFAS No. 112 requires
that employers expense the costs of postemployment benefits (as distinct
from postretirement pension, medical and life insurance benefits,
accounting for which is covered by SFAS Nos. 87, 88 and 106) over the
working lives of employees. The principal effect for GE was to change the
method of accounting for severance benefits. Under the Company's previous
accounting policy, the total cost of severance benefits was expensed when
the severance event occurred. This accounting change was reflected by a
first-quarter 1993 charge to net earnings of $862 million ($0.51 per
share), with a corresponding decrease in share owners' equity.
4. The condensed consolidated quarterly financial statements are
unaudited. These statements include all adjustments (consisting of normal
recurring accruals) considered necessary by management to present a fair
statement of the results of operations, financial position, and cash flows.
The results reported in these condensed consolidated financial statements
should not be regarded as necessarily indicative of results that may be
expected for the entire year.
5. Net earnings for the first nine months of 1994 included a $210 million
($350 million before tax) first-quarter charge resulting from the discovery
of false trading profits created by the then head U.S. government
securities trader at Kidder, Peabody & Co. Incorporated, a subsidiary
within the Company's securities broker-dealer business, Kidder, Peabody
Group Inc. (Kidder, Peabody). Approximately $143 million ($238 million
before tax) of the charge related to periods prior to 1994. The United
States Securities and Exchange Commission, the United States Attorney for
the Southern District of New York, and the New York Stock Exchange are
conducting investigations relating to the false trading profits. The
Company also completed and released a report on its internal investigation
of the matter.
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7
6. GE's inventories consisted of the following:
<TABLE>
<CAPTION>
(Dollars in millions) As of
-------------------------
9/30/94 12/31/93
------- --------
<S> <C> <C>
Raw materials and work in process $ 3,513 $ 2,983
Finished goods 2,419 2,314
Unbilled shipments 224 156
Revaluation to LIFO (1,486) (1,629)
------- -------
Total inventories $ 4,670 $ 3,824
======= =======
</TABLE>
7. Property, plant and equipment (including equipment leased to
others) - net consisted of the following:
<TABLE>
<CAPTION>
(Dollars in millions) As of
-------------------------
9/30/94 12/31/93
------- --------
<S> <C> <C>
Original cost
- GE $23,274 $22,441
- GECS 18,072 15,738
------- -------
Total 41,346 38,179
------- -------
Accumulated depreciation and amortization
- GE 13,722 12,899
- GECS 4,818 4,052
------- -------
Total 18,540 16,951
------- -------
Net
- GE 9,552 9,542
- GECS 13,254 11,686
------- -------
Total $22,806 $21,228
======= =======
8. GE's authorized common stock consisted of 2,200,000,000 shares
having a par value of $0.32 each. Average shares outstanding for the third
quarter of 1994 and 1993 were 1,711,013,810 and 1,707,082,600,
respectively. Average shares outstanding for the first nine months of 1994
and 1993 were 1,709,430,954 and 1,708,148,224, respectively. The number of
shares outstanding for 1993 have been adjusted to reflect the 2-for-1 stock
split effective on April 28, 1994.
9. On October 17, 1994, the Company entered into an agreement with
Paine Webber Group Inc. (PaineWebber) under which PaineWebber may acquire
certain Kidder, Peabody assets and businesses. The agreement also provides
that GE will retain Kidder, Peabody's other businesses, which PaineWebber
has the right to review and acquire. The transaction is subject to the
completion of due diligence and approval by various regulatory authorities.
<PAGE>
8
ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
A. Results of Operations - Third quarter of 1994 compared with third quarter
of 1993
General Electric Company's net earnings for the third quarter of 1994
were $1.368 billion, an increase of 13% from $1.206 billion in the
comparable 1993 period. Net earnings per share were $0.80 in the third
quarter of 1994, up 13% from $0.71 in 1993's comparable period.
Consolidated revenues were $16.15 billion in 1994's third quarter, an
increase of 9% from the prior year's $14.86 billion. Sales of goods and
services increased 7%. The sales growth was led by Plastics, Power Systems,
Transportation Systems, and Appliances. GECS' revenues from operations
increased 12%.
Operating margin in the third quarter of 1994 was a third-quarter
record 12.8% of sales, up 1.2 percentage points from last year's 11.6%.
This was the second consecutive quarter of an improvement of more than 1
percentage point.
Segment Analysis:
Comments that follow compare revenues and operating profit by
industry segment for the third quarters of 1994 and 1993.
* Aircraft Engines revenues and operating profit in the 1994 quarter
were considerably lower, reflecting continued weakness in both commercial
engine and military markets.
* Appliances operating profit was sharply higher in the third quarter
of 1994 as a result of continued productivity and somewhat higher revenues.
In connection with the latter, increases in the volume of shipments across
most product lines much more than offset pricing pressures, which
particularly affected refrigerator products.
* Broadcasting operating profit was sharply ahead of the third
quarter last year on slightly higher revenues. The favorable results
reflected principally improved prime-time performance and pricing and
continued strength in the local markets served by NBC's owned-and-operated
television stations.
* GECS' net earnings in the third quarter of 1994 were 7% ahead of
last year's quarter, with particularly strong performance in the Consumer
Services business. This, coupled with improved results in the Middle
Market business and no current-year counterpart to the unfavorable effects
of the 1993 increase in the federal tax rate from 34% to 35%, more than
offset an $89 million net loss ($85 million before amortization of
goodwill) at Kidder, Peabody and lower earnings in the Specialty Insurance
segment. The poor performance at Kidder, Peabody was largely attributable
to mortgage-backed securities market conditions and reduced underwritings.
The lower earnings in the Specialty Insurance Segment were attributable to
the effects of poor economic conditions and housing value declines in
southern California.
<PAGE>
9
* Industrial operating profit was considerably higher in the third
quarter of 1994 on a good increase in revenues. Strong productivity in the
Lighting and Motors businesses and significantly higher shipments of
locomotives in Transportation Systems were the primary reasons for the
favorable performance.
* Materials operating profit was up substantially in the third
quarter of 1994 on much higher revenues. Increased volume of shipments in
all businesses and strong productivity much more than offset generally
lower selling prices and increases in the cost of materials.
* Power Systems revenues and operating profit were considerably
higher in the third quarter of 1994. The increased volume, which was
principally attributable to sales associated with the Tokyo Electric Power
Company advanced boiling water reactor project, reduced material costs and
productivity more than offset lower selling prices.
* Technical Products and Services operating profit was slightly
higher in the third quarter of 1994 on a modest increase in revenues. Both
GE Information Services and Medical Systems reported good productivity
which about offset erosion in selling prices.
* All Other operating profit and revenues were up sharply, reflecting
higher income associated with licensing the use of GE know-how to others.
B. Results of Operations - First nine months of 1994 compared with first nine
months of 1993
Consolidated revenues from continuing operations for the first nine
months of 1994 aggregated $46.53 billion, up 10% from the comparable $42.48
billion in 1993's first nine months. GE's sales of goods and services were
6% higher in the first nine months of the current year as Plastics,
Appliances, Power Systems and Transportation Systems improved by double-
digits, and more than offset much lower sales of aircraft engine goods and
services. Overall, the volume of shipments was about 8% higher in the first
nine months of 1994, however the effect on sales was partially offset by
lower selling prices. GECS' revenues from operations were up 17%,
principally reflecting a higher average level of invested assets from both
the acquisition of portfolios and new businesses and increased volume in
established businesses.
Net earnings for the first nine months of 1994 were $3.958 billion,
or $2.32 per share, compared with $2.838 billion, or $1.66 per share, in
the first nine months of 1993. Four important factors to consider in
comparing the Company's nine months operations are discussed separately in
the following paragraphs:
* As discussed in note 5, current-year earnings included a one-time
charge of $210 million ($350 million before tax), recorded in the first
quarter, resulting from the discovery of false trading profits created by
the then head U.S. government securities trader at Kidder, Peabody.
Approximately $143 million ($238 million before tax) of the charge related
to periods prior to 1994.
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10
* The year-earlier nine months included in "earnings from continuing
operations" one-time restructuring charges ($678 million after tax)
recorded in the second quarter to cover explicit programs to enhance the
Company's global competitiveness.
* The first nine months of 1993 included $753 million, or $0.44 per
share, of net earnings related to the discontinued Aerospace businesses, as
discussed in note 2 to the condensed consolidated financial statements.
Such net earnings comprised $678 million from the gain on transfer of the
discontinued businesses during the second quarter of 1993 and $75 million
from first-quarter 1993 operations. The one-time gain from the transfer and
first-quarter 1993 operating results were classified as "earnings from
discontinued operations."
* The year-earlier period also included a one-time charge of $862
million, or $0.51 per share, to first-quarter's earnings for an accounting
change associated with the adoption of Statement of Financial Accounting
Standards (SFAS) No. 112, Employers' Accounting for Postemployment
Benefits. See note 3 to the condensed consolidated financial statements.
Operating margin in the first nine months of 1994 was 13.6% of sales,
up almost one percentage point from last year's comparable (that is,
excluding 1993 restructuring provisions) margin rate of 12.7%, led by
improvements at Appliances and NBC.
GE generated $2.6 billion of cash from operating activities in the
first nine months of 1994, equaling last year's record performance.
Important factors were higher earnings and the continued improvement in
inventory turnover, offset partially by lower 1994 progress collections.
Segment Analysis:
The following comments compare revenues and operating profit by
industry segment for the first nine months of 1994 with the same period in
1993.
* Aircraft Engines operating profit was up sharply in the first nine
months of 1994 because of the impact of restructuring provisions recorded
in the comparable 1993 period. Excluding such restructuring provisions,
there was a considerable decrease in operating profit in 1994 on much lower
revenues, reflecting, as expected, the continuing weakness in both
commercial and military markets.
* Appliances operating profit was up sharply in the first nine months
of 1994 largely because of the impact of restructuring provisions in the
comparable 1993 period. Excluding such provisions, the segment still
reported sharply higher operating profit on considerably higher revenues.
Good productivity and much higher volume across all product lines were the
principal reasons for the improved results.
* Broadcasting operating profit was sharply higher in the first nine
months of 1994 because of the impact of restructuring provisions recorded
in the comparable 1993 period. Excluding such provisions, operating profit
was substantially higher. The favorable results included the effect of
somewhat higher revenues, particularly sales associated with sporting
events such as the NBA playoffs; strength in the operating results of NBC's
owned-and-operated television stations; and continued success in lowering
overhead costs.
<PAGE>
11
* GECS' earnings of $1.319 billion were 3% lower than the comparable
earnings of $1.358 billion a year ago, reflecting the aforementioned one-
time, after-tax charge of $210 million at Kidder, Peabody during the first
quarter. Kidder, Peabody's net loss amounted to $272 million for the first
nine months of 1994 compared with reported net earnings of $186 million in
the same period last year. Excluding estimated effects of the false
trading profits from both periods, Kidder, Peabody's net loss amounted to
$129 million for the first nine months of 1994 (compared with net earnings
of $99 million for the first nine months of 1993) attributable principally
to mortgage-backed securities market conditions and reduced underwritings.
The poor performance at Kidder, Peabody was substantially offset by higher
earnings in GECS' Financing Segment, reflecting a higher average level of
invested assets and reduced provisions for losses in the Specialized
Financing business. GECS was not affected by 1993 provisions for
restructuring.
* Industrial operating profit was sharply higher in the first nine
months of 1994 because of the impact of restructuring provisions recorded
during the comparable 1993 period. Excluding such restructuring provisions,
operating profit was considerably ahead of the year-earlier period on a
good increase in revenues. The favorable performance in both operating
profit and revenues was led by Motors and Transportation Systems, with a
significantly higher level of shipments of locomotives in Transportation
Systems and much higher shipments and improved productivity in Motors. In
addition, European Lighting Operations improved sharply, largely because of
strong productivity gains.
* Materials operating profit increased substantially in the first
nine months of 1994, primarily because of the impact of restructuring
provisions recorded in the comparable 1993 period. Excluding such
provisions, operating profit was considerably higher in the current period
on a good increase in revenues. The effects of a much higher level of
shipments and productivity were partially offset by lower selling prices.
* Power Systems operating profit was sharply higher during the first
nine months of 1994 because of the impact of restructuring provisions
during the comparable 1993 period. Excluding such provisions, operating
profit was up slightly on a good increase in revenues, as lower selling
prices offset most of the favorable effects of higher volume, productivity
and lower material costs.
* Technical Products and Services operating profit was sharply higher
in the first nine months of 1994 because of the impact of restructuring
provisions recorded in the comparable 1993 period. Excluding such
provisions, operating profit was somewhat higher, reflecting strong
productivity in both GE Information Services and Medical Systems, and
slightly higher revenues.
* All Other operating profit, which was unaffected by restructuring,
was up sharply on a good increase in revenues. The improvement was
primarily attributable to income related to licensing the use of GE know-
how to others.
<PAGE>
12
C. Financial Condition
With respect to the Condensed Statement of Financial Position,
consolidated assets of $254.9 billion were $3.4 billion higher at September
30, 1994, than the $251.5 billion at December 31, 1993. GECS' assets
increased $0.8 billion; GE's assets were up $2.0 billion; eliminations
between the two were $0.6 billion lower, principally because of lower
investment in GECS which was more than explained by the mark-to-market
adjustment of investment securities.
GECS' assets increased $0.8 billion from the end of last year,
representing the net result of changes in several accounts. GE Capital
Corporation's (GE Capital) financing receivables, which net of reserves
aggregated $70.6 billion at the end of the first nine months of 1994,
increased $6.7 billion from year-end 1993 as a result of both origination
volume and acquisitions of portfolios and businesses. Management believes
that GE Capital's reserves of $1.9 billion (2.63% of the receivables
balance at September 30, 1994 - the same percent as year end 1993) are
appropriate given the strength and diversity of the portfolio, and current
economic circumstances. Other GECS receivables increased $2.8 billion,
principally as a result of the gross-up of certain accounts as required by
Financial Accounting Standards Board Interpretation (FIN) No. 39,
Offsetting of Amounts Related to Certain Contracts, which was implemented
during the first quarter of 1994. Securities purchased under agreements to
resell (reverse repurchase agreements) at Kidder, Peabody increased $2.1
billion principally because of the implementation of FIN 39 discussed above
and use of these agreements to cover higher levels of short inventory
positions, partially offset by a reduction in the level of "matched-book"
transactions. A number of GECS' businesses added equipment leased to others
during the first nine months of 1994 resulting in a net increase of $1.6
billion. The higher balances in these accounts were partially offset by
decreases of $10.2 billion in GECS' trading securities (entirely Kidder,
Peabody), reflecting principally reduced activity in the fixed-income
business as a result of the current interest-rate environment, and $2.7
billion in all other assets, primarily a reduction in mortgages acquired
for resale.
An increase of $2.0 billion in GE's assets from year end 1993
consisted of numerous relatively small changes, the largest of which
resulted from normal seasonal increases of inventories ($0.8 billion).
Consolidated liabilities were $226.1 billion at September 30, 1994,
compared with $224.0 billion at year end 1993. GECS' liabilities increased
$1.0 billion; GE's liabilities were up $0.9 billion; eliminations between
the two were $0.2 billion lower.
The GECS' liabilities increase of $1.0 billion was, as with assets,
the net result of changes in several accounts. The largest increase
consisted of higher borrowings of $4.0 billion (long-term borrowings up
$7.3 billion; short-term borrowings down $3.3 billion), primarily at GE
Capital, reflecting a change in the mix of borrowings to finance its asset
growth. The change also included higher levels of reserves of insurance
affiliates ($1.9 billion), accounts payable ($1.2 billion) and securities
sold but not yet purchased (short sales) ($0.7 billion). These increases
were partially offset by a $6.9 billion reduction in the balance of
securities sold under agreements to repurchase (repurchase agreements) at
<PAGE>
13
Kidder, Peabody. This reduction was in response to the net changes in
trading securities, reverse repurchase agreements and short sales, and was
partially offset by the gross-up of this account as required by FIN No. 39
discussed previously.
GE's liabilities increased $0.9 billion during the first nine months
of 1994, which was more than explained by an increase of $1.2 billion in
the level of borrowings (short-term up $1.0 billion; long-term up $0.2
billion) primarily to fund additional cash requirements during the period,
including acquisition of a majority interest in Nuovo Pignone, an Italian
electrical equipment maker. GE's total borrowings were $6.0 billion ($3.3
billion short-term and $2.7 billion long-term) at September 30, 1994. GE's
ratio of total debt to capital at the end of the first nine months of 1994
was 18.1% compared with 15.5% at the end of last year and 20.0% at
September 30, 1993.
With respect to cash flows, consolidated cash and cash equivalents
were $3.3 billion at September 30, 1994, $0.1 billion higher than December
31, 1993. Cash and cash equivalents were $2.9 billion at September 30,
1993, $0.2 billion below December 31, 1992.
GE's cash and equivalents increased $0.2 billion to $1.7 billion at
September 30, 1994, compared with $1.5 billion at year-end 1993. During the
first nine months of 1994, cash provided from operating activities equaled
last year's comparable $2.6 billion, despite the use of $2.2 billion for
"all other activities," which was the net result of numerous, relatively
small changes in all other assets and other current and noncurrent
liabilities. Cash used for investing activities ($1.7 billion) primarily
was attributable to investments in new plant and equipment for a wide
variety of projects to reduce costs and improve efficiencies, and for
acquisition of a majority interest in Nuovo Pignone. Cash used for
financing activities ($0.7 billion) included $1.8 billion for dividends
paid to share owners, representing a 14% increase in the per-share dividend
rate compared with the first nine months of last year, and $0.1 billion for
net repurchases of GE shares for treasury. The combination of these two
items was offset partially by cash provided from higher borrowings of $1.2
billion.
GE's cash and equivalents were $1.5 billion at September 30, 1993, up
$0.3 billion from $1.2 billion at year-end 1992. During the first three
quarters of 1993, cash provided from continuing operating activities
totaled $2.6 billion, a record performance. Cash used for continuing
investing activities ($0.9 billion) was more than explained by investments
in new plant and equipment for a wide variety of capital expenditure
projects to reduce costs and improve efficiencies. Cash used for financing
activities ($2.7 billion) included $1.6 billion for dividends paid to share
owners, representing a 15% increase in per-share dividends compared with
the first nine months of 1992, $0.7 billion to reduce borrowings and $0.4
billion for net repurchases of the Company's common stock for treasury.
Cash provided from discontinued operations totaled $1.3 billion,
principally cash received upon transfer of GE's Aerospace business.
GECS' cash and equivalents decreased $0.1 billion during the first
nine months of 1994. Cash was used primarily for investing activities: to
fund GE Capital's growth in financing receivables ($6.3 billion); for
additions to equipment that is provided to third parties on operating
<PAGE>
14
leases ($3.7 billion); and for acquisitions of businesses ($1.3
billion), the largest of which was Northern Telecom Financial
Corporation. Cash of $3.7 billion was provided by "all other investing
activities," principally as a result of dispositions of GE Capital's
equipment leased to others ($2.0 billion) and a reduced level of other
assets ($1.6 billion) which was largely attributable to a reduced level
of mortgages acquired for resale. Cash provided by operating activities
totaled $4.7 billion. Included in this category was cash used for "all
other operating activities" of $2.2 billion which was more than
explained by changes in GECS' all other receivables associated with
Kidder Peabody's trading activities. Cash provided from "net change in
broker-dealer accounts" consisted of $10.2 billion provided from
reductions of trading securities and $0.7 billion from higher short
sales, both of which were offset by cash used for the increased levels
of repurchase and reverse repurchase agreements ($9.0 billion). Funds
provided from increased borrowings during the first nine months of 1994
aggregated $3.1 billion.
GECS' cash and equivalents decreased $0.5 billion during the first
nine months of 1993. Cash was used primarily for additions to equipment
that is provided to third parties on operating leases ($2.8 billion), for
acquisitions of businesses ($2.0 billion), and to increase financing
receivables ($1.0 billion). These uses were mostly funded by cash provided
from operating activities ($3.9 billion) and by increased borrowings ($2.7
billion). Included in the operating activities category was cash used for
"net change in broker-dealer accounts" of $3.1 billion. This consisted of
cash usage of $5.5 billion for an increase in marketable securities held
for trading and $0.3 billion for the net change in repurchase and reverse
repurchase agreements, partially offset by cash of $2.7 billion provided
from the change in securities sold but not yet purchased (short sales).
Cash used for "all other investing activities" ($0.8 billion) was more than
explained by an increase in marketable securities held by GECS' finance and
specialty insurance businesses ($1.4 billion).
D. Other Matters
As discussed in Note 9 to the condensed consolidated financial
statements, the Company has entered into an agreement with Paine Webber
Group Inc. (PaineWebber) under which PaineWebber may acquire certain
Kidder, Peabody assets and businesses. The agreement also provides that GE
will retain Kidder, Peabody's other businesses, which PaineWebber has the
right to review and acquire. The transaction is subject to the completion
of due diligence and approval by various regulatory authorities. If the
transaction is consummated, the Company estimates that the 1994 net loss
with respect to Kidder, Peabody will range from $850 to $950 million ($.50
to $.56 per share), which includes the previously discussed $272 million
net loss through the first nine months of 1994.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
General
- -------
As previously reported, the directors and certain former directors
are defendants in a civil suit purportedly brought on behalf of the Company
<PAGE>
15
as a share owner derivative action (the Bildstein action) which was
commenced in New York State Supreme Court in January 1994. The suit seeks
compensatory damages arising out of the purported failure of the defendants
to prevent alleged government contract fraud and alleged violations of the
Foreign Corrupt Practices Act in connection with U.S. government-funded
sales of military equipment to Egypt by a unit of the Company's former GE
Aerospace component. The GE Aerospace businesses were transferred to a new
company controlled by the shareholders of Martin Marietta Corporation in
1993. The suit claims that the risk of litigation arising from the alleged
wrongdoing caused the Company to receive less than it would have otherwise
received in connection with the transfer of GE Aerospace. On April 6,
1994, the Company and all other defendants moved to dismiss the complaint
based on the plaintiff's failure to make a pre-litigation demand, among
other reasons. On September 30, 1994, the court dismissed the complaint.
Also as previously reported, on April 24, 1991, Philip M. Stern, a
Company shareholder, served an amended complaint naming the directors
(other than Messrs. Atwater, Calloway, Fresco, Gonzalez, Jones and Warner)
as defendants in a civil suit brought purportedly on behalf of the Company
as a shareholder derivative action (the Stern action) in the U.S. District
Court in New York City. The amended complaint relates to the Non-Partisan
Political Support Committee For General Electric Company Employees (PAC)
and alleges that it was a waste of corporate assets to provide Company
funds to establish and operate the PAC for GE employees because the PAC is
allegedly used to attempt to buy favor and influence with incumbent members
of Congress and because solicitation and administration costs were
allegedly excessive. In related proceedings, the Federal Elections
Commission and two federal courts held that the political contributions
made by the PAC were lawful and proper under federal election law. The
complaint includes allegations of bad faith, fraud, negligence and breach
of fiduciary duty under state law and seeks to require the defendants to
pay to the Company all amounts spent by the Company to establish,
administer and maintain the PAC as well as punitive damages. On March 12,
1992, the plaintiff filed a motion to amend the complaint to add a claim
that the defendants allegedly violated the Federal Regulation of Lobbying
Act, and thereby breached their fiduciary duty to shareholders by failing
to report lobbying expenses as required by that statute. On June 2, 1992,
plaintiff's motion was denied. On September 4, 1992, Henry D. Sedgwick
Stern and Walter B. Slocombe, Personal Representatives of the Estate of
Philip M. Stern, were substituted as the plaintiffs in this case, following
the death of Philip Stern. On November 16, 1993, the court granted summary
judgment for all defendants on all claims. Following plaintiffs' appeal,
the United States Court of Appeals for the Second Circuit affirmed the
District Court's judgment, and the United States Supreme Court subsequently
denied plaintiffs' petition for a writ of certiorari.
Also as previously reported, allegations of various federal law
violations, including alleged antitrust violations involving the Company
and DeBeers Consolidated Mines, Ltd. in the industrial diamonds industry,
were made in a wrongful termination action brought by a former vice
president of the Company. Various allegations of antitrust violations
concerning industrial diamonds are also the subject of two previously
reported civil suits against the Company purportedly brought on behalf of
classes of industrial diamond purchasers and an additional civil suit
against the Company brought on behalf of two corporations engaged in the
manufacture and sale of industrial diamonds. On February 16, 1994, the
<PAGE>
16
wrongful termination action was dismissed with prejudice and the former
officer filed a sworn statement conceding that he had no personal knowledge
of any wrongdoing by Company personnel and that he had become aware that
the Company had removed him based on its view of his performance, not
because he was a "whistleblower." On February 17, 1994, an indictment was
returned in the United States District Court in Columbus, Ohio, following
the previously reported grand jury investigation by the United States
Department of Justice, charging the Company and one European employee of
the Company's superabrasives business, and other unrelated parties, with
entering into an anti-competitive agreement in violation of federal
antitrust laws. The Company denies the charges and is vigorously
contesting them. Trial of the criminal charges began on October 25, 1994.
The Company believes that none of these cases will have a material adverse
effect on the Company or its business.
Environmental
- -------------
As previously reported, in June of 1992, the State of New York
issued a complaint alleging violations of the state Clean Air Act and Clean
Water Act (unpermitted emissions and discharges in excess of permit limits)
at the Company's Schenectady facility. The complaint sought penalties of
$1,039,435. The State and the Company agreed to settle the matter in
October 1994 for $495,000.
As previously reported, in January of 1993, the State of Indiana
notified the Company that it would be seeking penalties for violations of
the state Clean Air Act for failing to install required control equipment
at its Ft. Wayne facility. In July of 1993, the State issued a penalty
demand of $150,000. The State and the Company agreed to settle the matter
in August 1994 for $35,000.
As previously reported, in April of 1994, the U.S. Environmental
Protection Agency issued an administrative complaint to the Company
alleging violations of the Toxic Substances Control Act at its Schenectady
Research and Development facility, including improper manufacturing,
handling and disposal of PCBs from 1989-1991. The complaint sought a
penalty of $139,875. The matter was settled in October 1994 for $70,000.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
Exhibit 11. Computation of Per Share Earnings.
Exhibit 12. Computation of Ratio of Earnings to Fixed Charges.
Exhibit 27. Financial Data Schedule
b. Reports on Form 8-K during the quarter ended September 30,
1994.
No reports on Form 8-K were filed during the quarter ended
September 30, 1994.
<PAGE>
17
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
General Electric Company
(Registrant)
November 3, 1994 Philip D. Ameen
- ----------------- --------------------------------------------------
Date Vice President and Comptroller
Duly Authorized Officer and Principal
Accounting Officer
</TABLE>
<PAGE>
(1)
EXHIBIT 11
GENERAL ELECTRIC COMPANY
COMPUTATION OF PER SHARE EARNINGS
(Shares in thousands; dollar amounts, except
earnings per share, in millions)
<TABLE>
<CAPTION>
Fully
Earnings Primary diluted
per common earnings earnings
Third quarter ended September 30, 1994 share per share per share
- -------------------------------------- ---------- --------- ---------
<S> <C> <C> <C>
Net earnings applicable to common stock $1,368 $1,368 $1,368
Dividend equivalents (net of tax) applicable
to deferred incentive compensation shares - 3 3
--------- --------- ---------
Earnings for per-share calculations $1,368 $1,371 $1,371
--------- --------- ---------
Average number of shares outstanding 1,711,014 1,711,014 1,711,014
Average number of deferred incentive
compensation shares - 8,473 8,473
Average stock option shares - 10,508 10,508
Average number of restricted stock units - 1,117 1,117
--------- --------- ---------
Shares for earnings calculation 1,711,014 1,731,112 1,731,112
--------- --------- ---------
Earnings per share $0.80 $0.79 $0.79
- ------------------ ========= ========= =========
Nine months ended September 30, 1994
- ------------------------------------
Net earnings applicable to common stock $3,958 $3,958 $3,958
Dividend equivalents (net of tax) applicable
to deferred incentive compensation shares - 5 5
--------- --------- ---------
Earnings for per-share calculations $3,958 $3,963 $3,963
--------- --------- ---------
Average number of shares outstanding 1,709,431 1,709,431 1,709,431
Average number of deferred incentive
compensation shares - 8,547 8,547
Average stock option shares - 10,366 10,366
Average number of restricted stock units - 1,118 1,118
--------- --------- ---------
Shares for earnings calculation 1,709,431 1,729,462 1,729,462
--------- --------- ---------
Earnings per share $2.32 $2.29 $2.29
- ------------------ ========= ========= =========
</TABLE>
<PAGE>
(2)
EXHIBIT 11
GENERAL ELECTRIC COMPANY
COMPUTATION OF PER SHARE EARNINGS -a)
(Shares in thousands; dollar amounts, except
earnings per share, in millions)
<TABLE>
<CAPTION>
Fully
Earnings Primary diluted
per common earnings earnings
Third quarter ended September 30, 1993 share per share per share
- -------------------------------------- ---------- --------- ---------
<S> <C> <C> <C>
Net earnings applicable to common stock $1,206 $1,206 $1,206
Dividend equivalents (net of tax) applicable
to deferred incentive compensation shares - - -
--------- --------- ---------
Earnings for per-share calculations $1,206 $1,206 $1,206
--------- --------- ---------
Average number of shares outstanding 1,707,083 1,707,083 1,707,083
Average number of deferred incentive
compensation shares - 8,318 8,318
Average stock option shares - 11,766 11,776
--------- --------- ---------
Shares for earnings calculation 1,707,083 1,727,167 1,727,177
--------- --------- ---------
Earnings per share $0.71 $0.70 $0.70
- ------------------ ========= ========= =========
Nine months ended September 30, 1993
- ------------------------------------
Net earnings applicable to common stock $2,838 $2,838 $2,838
Dividend equivalents (net of tax) applicable
to deferred incentive compensation shares - 4 4
--------- --------- ---------
Earnings for per-share calculations $2,838 $2,842 $2,842
--------- --------- ---------
Average number of shares outstanding 1,708,148 1,708,148 1,708,148
Average number of deferred incentive
compensation shares - 8,520 8,520
Average stock option shares - 10,350 11,457
--------- --------- ---------
Shares for earnings calculation 1,708,148 1,727,018 1,728,125
--------- --------- ---------
Earnings per share $1.66 $1.65 $1.64
- ------------------ ========= ========= =========
<FN>
(a- Adjusted to reflect the two-for-one stock split effective on April 28, 1994.
</TABLE>
<PAGE>
EXHIBIT 12
<TABLE>
GENERAL ELECTRIC COMPANY
RATIO OF EARNINGS TO FIXED CHARGES
<CAPTION>
(Dollars in millions) Nine months ended
September 30, 1994
------------------
<S> <C>
GE except GECS
- ---------------
"Earnings" -a) $ 5,301
Less: Equity in undistributed earnings
of General Electric Capital
Services, Inc. -b) (864)
Plus: Interest and other financial
charges included in expense 316
One-third of rental expense -c) 159
-------
Adjusted "earnings" $ 4,912
=======
Fixed Charges:
Interest and other financial charges $ 316
Interest capitalized 14
One-third of rental expense -c) 159
-------
Total fixed charges $ 489
=======
Ratio of earnings to fixed charges 10.04
=======
General Electric Company and consolidated affiliates
- ----------------------------------------------------
"Earnings" -a) $5,805
Plus: Interest and other financial
charges included in expense 7,155
One-third of rental expense -c) 289
-------
Adjusted "earnings" $13,249
=======
Fixed Charges:
Interest and other financial charges $ 7,155
Interest capitalized 21
One-third of rental expense -c) 289
----=--
Total fixed charges $ 7,465
=======
Ratio of earnings to fixed charges 1.77
=======
<FN>
(a- Earnings before income taxes and minority interest.
(b- Earnings after income taxes.
(c- Considered to be representative of interest factor in rental expense.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000040545
<NAME> GENERAL ELECTRIC COMPANY
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 3,343
<SECURITIES> 46,981<F1>
<RECEIVABLES> 0<F2>
<ALLOWANCES> 0<F2>
<INVENTORY> 4,670
<CURRENT-ASSETS> 0<F3>
<PP&E> 41,346
<DEPRECIATION> 18,540
<TOTAL-ASSETS> 254,873
<CURRENT-LIABILITIES> 0<F3>
<BONDS> 35,810
<COMMON> 593
0
0
<OTHER-SE> 26,283
<TOTAL-LIABILITY-AND-EQUITY> 254,873
<SALES> 21,132
<TOTAL-REVENUES> 27,637<F4>
<CGS> 15,506
<TOTAL-COSTS> 20,171<F5>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0<F2>
<INTEREST-EXPENSE> 7,126
<INCOME-PRETAX> 5,685
<INCOME-TAX> 1,727
<INCOME-CONTINUING> 3,958
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,958
<EPS-PRIMARY> 2.29
<EPS-DILUTED> 2.29
<FN>
<F1>Trading ($19,971) and investment ($27,010)securities.
<F2>Not disclosed in interim periods.
<F3>Not applicable to consolidated GE.
<F4>GE sales of goods ($21,132) and services ($6,505).
<F5>GE cost of goods ($15,506) and services ($4,665) sold.
</FN>
</TABLE>
