GE reports record third-quarter 2005 financial results

16 October 2005

Fairfield, Conn. USA. GE's third-quarter 2005 earnings were a record $4.7 billion, 15% higher than last year's third quarter. Healthcare increased total orders 8% over third quarter 2004 to $3.7 billion.

Financial highlights:

  • Revenues up 9% to $41.9 billion, with 8% organic revenue growth.
  • Earnings of $4.7 billion up 15%.
  • Earnings per share (EPS) of $.44 up 16%.
  • All six GE businesses deliver double-digit earnings growth.
  • Cash flow from operating activities (CFOA) up 51% to $14.7 billion, industrial CFOA up 20%.
  • Full-year EPS target now $1.81-$1.83, up 12-14%.
  • Stock buyback increased to more than $4 billion for 2005.

"Despite a volatile environment, our fundamentals remain very strong, as we achieved double-digit earnings growth across all six of our businesses," said GE Chairman and CEO Jeff Immelt. "Our businesses are generating solid top and bottom line growth. We increased revenue by 9% to $41.9 billion and produced another record for earnings in the quarter with $4.7 billion, an increase of 15%.

"This was our third consecutive quarter of 8% organic revenue growth. We continue to optimize our growth initiatives for sustained and consistent performance," Immelt said. "Orders were up 11%, services sales increased 9%, revenue from accelerating growth platforms, such as Healthcare IT and Oil & Gas, grew 24% , and we generated strong double-digit global revenue growth from markets such as China and Europe.

"We delivered EPS at the high end of our previous guidance despite incurring over $377 million of hurricane-related reinsurance losses," said Immelt. "Even in the face of significant natural disasters, our team once again delivered on our financial commitment to shareowners.

"Year-to-date cash flow from operating activities increased 51%. For the full year 2005, we expect to generate approximately $20 billion in CFOA, up more than 30%," Immelt said. "Because of this strong position, we increased our planned stock buyback from $3 billion to more than $4 billion for 2005, which puts us ahead in our three-year $15 billion buyback schedule. We will continue to explore additional ways to return cash to investors."

Third quarter 2005 healthcare business highlights

  • Announced agreement to acquire IDX Systems Corporation, a leader in information technology software.
  • Increased total orders 8% over third quarter 2004 to $3.7 billion, driven by 9% growth in services, to $1.4 billion, and 7% growth in equipment, to $2.3 billion.
  • Grew equipment with strength in computed tomography (CT), ultrasound, and nuclear orders with strong demand for Imagination Breakthrough products, including more than $200 million in orders for the LightSpeed(TM) Volume CT scanner.
  • Grew Services with strength in Core Services and PACS (picture archiving and communications systems).
  • Signed an exclusive marketing agreement with InSightec Image Guided Treatment Ltd. to sell devices, which non-invasively treat uterine fibroids.

For further information

See full financial statement

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