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Hoover's Custom Report BuilderGeneral Electric Company
3135 Easton Tpke.Fairfield, CT 06828−0001 United States (Map)
Phone: 203−373−2211Fax: 203−373−3131http://www.ge.com
Table of ContentsThe Basics................................................................................................................................................................................1
Key Information..........................................................................................................................................................1Key Numbers..............................................................................................................................................................1Rankings/Stock Indexes..............................................................................................................................................1
Officers and Employees.........................................................................................................................................................2Corporate Officers.......................................................................................................................................................2Board...........................................................................................................................................................................5
Biographies.............................................................................................................................................................................6Jeffrey R. (Jeff) Immelt, Age 51.................................................................................................................................6William M. (Bill) Castell, Age 59...............................................................................................................................6Robert C. (Bob) Wright, Age 63.................................................................................................................................7Michael A. (Mike) Neal, Age 53................................................................................................................................8John G. Rice, Age 50..................................................................................................................................................9Lloyd G. Trotter, Age 61...........................................................................................................................................10Keith S. Sherin, Age 48.............................................................................................................................................11John F. Lynch, Age 54..............................................................................................................................................11Pamela Daley, Age 54...............................................................................................................................................12Gary M. Reiner, Age 51............................................................................................................................................12Mark M. Little, Age 53.............................................................................................................................................13Brackett B. Denniston, Age 59.................................................................................................................................13David R. (Dave) Nissen, Age 55...............................................................................................................................14James P. (Jim) Campbell...........................................................................................................................................15Joseph M. (Joe) Hogan, Age 50................................................................................................................................15Michael E. Pralle, Age 49.........................................................................................................................................16Mark W. Begor, Age 47............................................................................................................................................17Yoshiaki Fujimori, Age 54........................................................................................................................................17Charlene T. Begley, Age 39......................................................................................................................................18Scott C. Donnelly, Age 45........................................................................................................................................19John Krenicki, Age 44...............................................................................................................................................19Ronald R. (Ron) Pressman, Age 49..........................................................................................................................20Deborah (Deb) Elam, Age 44....................................................................................................................................20Q. Todd Dickinson....................................................................................................................................................21Daniel S. (Dan) Henson, Age 44...............................................................................................................................21
Overview...............................................................................................................................................................................23
History...................................................................................................................................................................................24
Industry Information...........................................................................................................................................................26
Competitors...........................................................................................................................................................................27Top Competitors........................................................................................................................................................27All Competitors.........................................................................................................................................................27
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Table of ContentsProducts and Operations.....................................................................................................................................................28
Company Financials.............................................................................................................................................................30Financial Overview...................................................................................................................................................30Annual Income Statement.........................................................................................................................................31Quarterly Income Statement.....................................................................................................................................31Annual Balance Sheet...............................................................................................................................................33Quarterly Balance Sheet............................................................................................................................................33Annual Cash Flow.....................................................................................................................................................35Quarterly Cash Flow.................................................................................................................................................35Historical Financials..................................................................................................................................................36Market Data...............................................................................................................................................................37Comparison Data.......................................................................................................................................................38Competitive Landscape.............................................................................................................................................40
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The Basics
3135 Easton Tpke.Fairfield, CT 06828−0001 United States (Map)
Phone: 203−373−2211Fax: 203−373−3131http://www.ge.com
From turbines to TV, from household appliances to power plants, General Electric (GE) is plugged in to most of thebusinesses that have shaped the modern world. The company produces −− take a deep breath −− aircraft engines,locomotives and other transportation equipment, kitchen and laundry appliances, lighting, electric distribution and controlequipment, generators and turbines, and medical imaging equipment. GE is also one of the largest financial servicescompanies in the US, offering commercial finance, consumer finance, and equipment financing. Other operations includethe NBC television network.
Key Information
D−U−N−S Number 001367960
Doing Business As "Ge"
Company Type Public − NYSE: GE
Location Type Headquarters
Year Of Founding or Change In Control 1892
State of Incorporation NYKey Numbers
Fiscal Year−End December
Sales (mil.) $163,391.0
1−Year Sales Growth 8.8%
Net Income (mil.) $20,829.0
1−Year Net Income Growth 24.6%
Rankings/Stock Indexes
#6 in FORTUNE 500• S&P 500• Dow Jones Industrials• Dow Jones Global Titans• #2 in FT Global 500•
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Officers and Employees
Corporate Officers
Title Name Age
Chairman and CEO Mr. Jeffrey R. (Jeff) Immelt 51
Director Sir William M. (Bill) Castell 59
Vice Chairman Mr. Robert C. (Bob) Wright 63
Vice Chairman; President and CEO, GE Commercial Finance; Chairman,GE Capital Services
Mr. Michael A. (Mike) Neal 53
Vice Chairman; President and CEO, GE Industrial Mr. John G. Rice 50
Vice Chairman; President and CEO, GE Industrial Mr. Lloyd G. Trotter 61
SVP Finance and CFO Mr. Keith S. Sherin 48
SVP Human Resources Mr. John F. Lynch 54
SVP Corporate Business Development Ms. Pamela Daley 54
SVP and CIO Mr. Gary M. Reiner 51
SVP and Director of Global Research Dr. Mark M. Little 53
SVP and General Counsel Mr. Brackett B. Denniston III 59
SVP; President and CEO, GE Money Mr. David R. (Dave) Nissen 55
SVP; President and CEO, GE Consumer & Industrial Mr. James P. (Jim) Campbell
SVP; President and CEO, GE Healthcare Mr. Joseph M. (Joe) Hogan 50
SVP; President and CEO, GE Real Estate, GE Commercial Finance Mr. Michael E. Pralle 49
SVP; President and CEO, Americas, GE Money Mr. Mark W. Begor 47
SVP; President and CEO, Asia Mr. Yoshiaki Fujimori 54
SVP; President and CEO, GE Plastics, GE Industrial Ms. Charlene T. Begley 39
SVP; President and CEO, GE Aircraft Engines, GE Infrastructure Mr. Scott C. Donnelly 45
SVP; President and CEO, GE Energy, GE Infrastructure Mr. John Krenicki Jr. 44
SVP; President and CEO, GE Asset Management Mr. Ronald R. (Ron) Pressman 49
VP and Chief Diversity Officer Ms. Deborah (Deb) Elam 44
VP and Chief Intellectual Property Counsel Mr. Q. Todd Dickinson
VP and Chief Marketing Officer Mr. Daniel S. (Dan) Henson 44
VP and Comptroller Mr. Philip D. Ameen 58
VP Corporate Audit Staff Mr. Brian Worrell 36
VP Corporate Citizenship and Chief Learning Officer Mr. Robert L. (Bob) Corcoran
VP Corporate Investor Relations Mr. Daniel C. Janki 37
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VP Corporate Risk and Financing Mr. Mark J. Krakowiak
VP Environmental Programs Mr. Stephen D. (Steve) Ramsey
VP Executive Development Ms. Susan P. Peters
VP Corporate Financial Planning and Analysis Mr. Shane Fitzsimons 38
VP Litigation and Legal Policy Mr. Jonathan P. Graham 46
VP Government Relations Ms. Nancy P. Dorn
VP and Senior Counsel, Antitrust Mr. Ronald A. Stern
VP and Senior Counsel, International Law and Policy Mr. R. Michael Gadbaw
VP and Senior Tax Counsel Mr. John M. Samuels
VP and Senior Counsel, Litigation and Legal Policy Mr. Alexander (Alex) Dimitrief
VP and Treasurer Ms. Kathryn A. (Kathy) Cassidy 52
VP; CEO, GE China Mr. Stefano P. (Steve) Bertamini41
VP; President and CEO, Japan, GE Money Akihiko (Kiko) Kumagai 49
President and CEO, InternationalMr. Ferdinando F. (Nani)Beccalli−Falco
56
Chairman, President, and CEO, Genworth Financial Mr. Michael D. (Mike) Fraizer 48
President and CEO, GE India Mr. Scott R. Bayman
President and CEO, GE Latin America Mr. Edmundo M. Vallejo
President and CEO, Middle East and Africa Mr. Nabil A. Habayeb 46
President and CEO, Asia, GE Commercial Finance Mr. John L. Flannery Jr.
President and CEO, Fleet Services, GE Commercial Finance Ms. Kathryn V. (Kathy) Marinello
President and CEO, Corporate Financial Services, GE CommercialFinance
Mr. Michael A. (Mike) Gaudino
President and CEO, GE Healthcare Financial Services, GE CommercialFinance
Mr. Jeffrey (Jeff) Malehorn
President and CEO, Strategy and Integration, GE Infrastructure Mr. William A. (Bill) Woodburn 54
President, Corporate Financial Services, Bank Loans, GE CommercialFinance
Mr. Ronald F. (Ron) Carapezzi
President, Corporate Lending, GE Commercial Finance Mr. Thomas M. (Tom) Quindlen 42
President and CEO, Capital Solutions, GE Commercial Finance Mr. Richard A. (Rich) Laxer
President, North America Equity, GE Commercial Finance Mr. Joseph E. (Joe) Parsons
President, GE Real Estate Europe, GE Commercial Finance Mr. Olivier Piani
President and CEO, Central and Eastern Europe, GE Money Mr. Dmitri L. Stockton 41
President and CEO, Europe, Middle East, and Africa, GE Money Mr. William H. (Bill) Cary 46
President and CEO, Retail Consumer Finance, GE Money Ms. Margaret M. Keane 46
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President and CEO, Americas, GE Consumer & Industrial Ms. Lynn S. Pendergrass
President and CEO, Asia, GE Consumer & Industrial Mr. Darryl L. Wilson
President and CEO, Europe, Middle East, Africa, and India, GEConsumer & Industrial
Mr. Andre Horbach
President and CEO, Global Diagnostic Imaging, GE Healthcare Mr. Mark L. Vachon
President and CEO, Clinical Systems, GE Healthcare Mr. S. Omar Ishrak
President and CEO, GE Healthcare Information Technologies, GEHealthcare
Mr. Vishal K. Wanchoo 47
President and CEO, International, GE Healthcare Mr. Reinaldo A. Garcia
President and CEO, Japan, GE Healthcare Mr. Hiroyuki Mitani 52
President, China, GE Healthcare Dr. Chih Chen
President and CEO, Life Sciences, GE Healthcare Mr. Peter Ehrenheim 47
President and CEO, GE Equipment Services, GE Industrial Ms. Deborah M. (Debbie) Reif 50
President and CEO, GE Fanuc, GE Industrial Ms. Maryrose T. Sylvester
President and CEO, GE Security, GE Industrial Mr. A. Louis Parker
President and CEO, Sensing & Inspection Technologies, GE Industrial Ms. Caroline A. Reda
President and CEO, GE Advanced Materials Mr. Wayne M. Hewett
President and CEO, GE Commercial Aviation Services, GE InfrastructureMr. Henry A. Hubschman
President and CEO, GE Energy Financial Services, GE Infrastructure Mr. J. Alex Urquhart
President and CEO, GE Rail, GE Infrastructure Mr. John M. Dineen
VP; President and CEO, Oil & Gas, GE Infrastructure Mr. Claudi Santiago
President and CEO, Water & Process Technologies, GE Infrastructure Mr. Jeff R. Garwood
Chairman, NBC Universal Sports and Olympics, NBC Universal Mr. Dick Ebersol
Chairman and CEO, Universal Parks and Resorts, NBC Universal Mr. Thomas L. (Tom) Williams
President and CEO, NBC Universal Mr. Jeffrey A. (Jeff) Zucker 41
President, GE Capital, Europe, GE Commercial Finance Mr. Charles E. Alexander 54
President, NBC Universal Television Stations, NBC Universal Mr. James W. (Jay) Ireland III 51
VP Global Risk Management, GE Capital Mr. James A. (Jim) Colica
President and COO, Universal Studios, NBC Universal Mr. Ron Meyer
Manager, Corporate Identity Ms. Lynn Eversgerd
Project Leader, Recruiting Communications Ms. Betty Granata
Senior Financial Analyst Mr. Gary L. Standerford
Executive Director, Communications and Public Affairs Mr. Gary Sheffer
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Board
Title Name Age
Chairman and CEO Mr. Jeffrey R. (Jeff) Immelt 51
Director Sir William M. (Bill) Castell 59
Vice Chairman; President and CEO, GE Commercial Finance; Chairman,GE Capital Services
Mr. Michael A. (Mike) Neal 53
Vice Chairman; President and CEO, GE Industrial Mr. John G. Rice 50
Vice Chairman Mr. Robert C. (Bob) Wright 63
Director Dr. James I. Cash Jr. 59
Director Ms. Ann M. Fudge 55
Director Mr. Claudio X. Gonzalez 72
Director Dr. Susan Hockfield 55
Director Ms. Andrea Jung 48
Director Mr. Alan G. (A.G.) Lafley 59
Director Mr. Robert W. (Bob) Lane 57
Director Mr. Ralph S. Larsen 68
DirectorMs. Rochelle B. (Shelly)Lazarus
59
Director Mr. Sam Nunn 68
Director Mr. Roger S. Penske 70
Director Dr. Robert J. Swieringa 64
DirectorMr. Douglas A. (Sandy)Warner III
69
Vice Chairman; President and CEO, GE Industrial Mr. Lloyd G. Trotter 61
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Biographies
Jeffrey R. (Jeff) Immelt, Age 51
Title held since 2006: Chairman and CEO
Other Company Affiliations
Company Title Salary Bonus
Federal Reserve Bank of New York Director −− −−
General Electric Capital Corporation CEO and Director −− −−
Recent Work Highlights
General Electric Company2005: Chairman and CEO, $3,225,000 salary♦ 2004: Chairman and CEO, $3,000,000 salary, $5,300,000 bonus♦ 2003: Chairman and CEO, $3,000,000 salary, $4,325,000 bonus♦ 2002: Chairman and CEO, $3,000,000 salary, $3,900,000 bonus♦ 2001 − 2002, Chairman and CEO♦
•
Biography
Mr. Immelt joined GE in corporate marketing in 1982 after receiving a degree in applied mathematics from DartmouthCollege and an MBA from Harvard University. He then held a series of leadership positions with GE Plastics in sales,marketing and global product development. He became a vice president of GE in 1989, responsible for consumer servicefor GE Appliances. He subsequently became vice president of worldwide marketing and product management for GEAppliances in 1991, vice president and general manager of GE Plastics Americas commercial division in 1992, and vicepresident and general manager of GE Plastics Americas in 1993. He became senior vice president of GE and president andchief executive officer of GE Medical Systems in 1996. Mr. Immelt became GE's president and chairman−elect in 2000,and chairman and chief executive officer in 2001. He is also a director of the Federal Reserve Bank of New York.
Source: Proxy, February 27, 2007
William M. (Bill) Castell, Age 59
Title held since 2006: Director
Other Company Affiliations
Company Title Salary Bonus
BP p.l.c. Non−Executive Director −− −−
Recent Work Highlights
General Electric Company2005 − 2006, Vice Chairman and Executive Officer; Chairman, GE Healthcare♦ 2004 − 2005, Vice Chairman and Executive Officer; President and CEO, GE Healthcare♦
•
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Biography
Sir William M. Castell, Former Vice Chairman, General Electric Company. Director since 2004. A graduate of the City ofLondon College, Sir William joined Amersham plc in 1989 as Chief Executive. After GE acquired Amersham plc in April2004, Sir William was appointed a vice chairman of the General Electric Company and became the CEO of GEHealthcare, the combination of the Amersham and the GE Medical businesses and, in July 2005, became the chairman ofGE Healthcare. In April 2006 Sir William retired as a vice chairman of GE. Sir William was knighted in 2000 for servicesto the life sciences industry. He served in the United Kingdom from 1998 to 2003 as chairman of The Prince's Trust, acharity set up by the Prince of Wales in 1976. Sir William is currently chairman of the Wellcome Trust, a non−executivedirector of British Petroleum plc and a trustee of London's Natural History Museum. Sir William is an honorary fellow ofGreen College Oxford and an honorary fellow of the Academy of Medical Sciences. He has received honorary degreesfrom the University of Cardiff, King's College University of London, Brunel University and the University of Oxford.
Source: Proxy, February 27, 2007
Robert C. (Bob) Wright, Age 63
Title held since 2007: Vice Chairman
Other Company Affiliations
Company Title Salary Bonus
Damon Runyon Cancer Research Foundation Director −− −−
General Electric Capital Corporation Director −− −−
The Partnership for New York City Director −− −−
Recent Work Highlights
General Electric Company2005: Vice Chairman and Executive Officer; Chairman and CEO, NBC Universal, $2,500,000 salary,$6,270,000 bonus
♦
2004 − 2005, Vice Chairman and Executive Officer; Chairman and CEO, NBC Universal♦ 2003 − 2004, Vice Chairman and Executive Officer; President and CEO, National Broadcasting Company♦ 2002: Vice Chairman and Executive Officer; President and CEO, National Broadcasting Company,$2,229,167 salary, $4,300,000 bonus
♦
2001 − 2002, Vice Chairman and Executive Officer; President and CEO, National Broadcasting Company♦ Title held until 2001: Vice Chairman and Executive Officer; Chairman and CEO, National BroadcastingCompany
♦
•
Biography
Bob Wright is chairman of the board of NBC Universal, and vice chairman of the board, executive officer, and a memberof the Corporate Executive Office of the General Electric Company. Wright joined NBC as president and chief executiveofficer on September 1, 1986, and was made chairman and CEO of the network in June 2001. He then served as chairmanand chief executive officer of NBC Universal from May 2004 to February 6, 2007. Wright has had one of the longest andmost successful tenures of any media company chief executive, celebrating more than two decades at the helm of one ofthe world's leading media and entertainment companies. Under his leadership, NBC was transformed from a broadcastnetwork into a global media powerhouse with leadership in television programming, station ownership, and televisionproduction. During his successful tenure at the helm of NBC, Wright extended the broadcaster into cable and satellite,international, and new−media markets. At the same time, he significantly expanded the company's ownership of broadcast
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television stations, increasing its reach to over 30% of U.S. television households. In 2002, NBC completed threesignificant acquisitions: Telemundo, the nation's second−largest Spanish−language media company, with 16owned−and−operated stations in the continental United States and Puerto Rico; television station KNTV, which providesNBC programming to the San Francisco/San Jose market; and Bravo, a leading entertainment network, reaching morethan 80 million viewers across the nation. NBC Universal owns CNBC, which during Wright's tenure became the globalleader in business news, providing real−time financial−market information to more than 86 million households in theUnited States and 340 million homes worldwide. In addition, MSNBC, NBC's joint venture with Microsoft, reaches 83million U.S. cable subscribers and up to 24 million unique users each month on the Internet. Networks acquired as part ofthe Vivendi Universal Entertainment acquisition include the nation's most−watched basic cable network, USA Network,and SCI FI Channel. NBC Universal also has equity stakes in the A&E Network, the History Channel, and ValueVision'shome shopping network, and a non−voting interest in Paxson Communications Corporation. Internationally, NBCUniversal owns and operates a number of television channels offering entertainment programming across Europe andLatin America. Prior to his association with NBC and now NBC Universal, Wright served as president of General ElectricFinancial Services and, before that, as president of Cox Cable Communications. He has had a diversified career in generalmanagement, marketing, and broadcasting. Much of it has been with General Electric, NBC Universal's parent company.Wright has been the recipient of numerous honors, most recently the Visionary Award from the Museum of Television &Radio. In 2005, Wright received the Humanitarian Award from the Simon Wiesenthal Center for fostering tolerance andunderstanding through community involvement, educational outreach, and social action. Wright's past honors include theDistinguished Leadership in Business Award from Columbia Business School, the Golden Mike Award from theBroadcasters' Foundation, the Steven J. Ross Humanitarian of the Year award from the UJA−Federation of New York,and the Gold Medal Award from the International Radio & Television Society Foundation. He has been honored by theCenter for Communication for his industry leadership and has received the Ad Council's Public Service Award inrecognition of his commitment to public service in both the public and private sectors. He has also been inducted into theBroadcasting & Cable Hall of Fame. Wright is a founding member of the Global Leadership Group for BASCAP, theBusiness Alliance to Stop Counterfeiting and Piracy. He has been a leading figure in the global business community inraising awareness of the economic dangers of counterfeiting and piracy. He is on the board of trustees of the AmericanFilm Institute and the Museum of Television and Radio, and serves on the board of directors of the Motion Picture andTelevision Fund Corporation, the Damon Runyon Cancer Research Foundation, and the New York Center for Autism. Heis an honorary trustee of the Foundation of American Women in Radio and Television. In addition, Wright is on the boardof governors of New York−Presbyterian Hospital and is a member of the Society of New York Hospital Inc. Along withhis wife, Suzanne, Wright serves as co−founder of Autism Speaks, a foundation dedicated to raising public awareness andresearch funds to find the answers to autism. Wright is a graduate of the College of the Holy Cross and the University ofVirginia School of Law, where he received his LL.B. degree. He and Suzanne live in Connecticut and have three grownchildren.
Source: Company Web Site, 2007
Michael A. (Mike) Neal, Age 53
Title held since 2006: Vice Chairman; President and CEO, GE Commercial Finance; Chairman, GE Capital Services
Other Company Affiliations
Company Title Salary Bonus
GE Commercial Finance President and CEO −− −−
GE Franchise Finance Corporation President and CEO, GE Commercial Finance −− −−
General Electric Capital Corporation Director; President and CEO, GE Commercial Finance−− −−
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Recent Work Highlights
General Electric Company2002 − 2006, SVP; President and CEO, GE Commercial Finance♦ Title held until 2002: President and COO, GE Capital♦
•
Biography
Michael A. Neal is President and Chief Executive Officer of GE Commercial Finance, an array of businesses that offerfinancial services and products to businesses of any size, with particular expertise in the mid−market segment. With assetsof approximately $219 billion, GE Commercial Finance provides loans, operating leases, financial programs and otherservices. Previously, Neal was President and Chief Operating Officer of GE Capital Corporation. He is a Senior VicePresident of GE Company, and a member of the Advisory Committee, Penske Truck Leasing Co., L.P. Neal has heldvarious assignments at General Electric Company since he began in 1979. He joined GE Capital in 1987 as Vice Presidentand General Manager of Vendor Financial Services. In 1990, he became General Manager of Commercial EquipmentFinancing. Under Neal's direction, Commercial Equipment Financing, the world's largest supplier of middle−marketfinancing, recorded consistent growth, becoming one of the most profitable GE businesses. He was appointed ExecutiveVice President of GE Capital in 1994 and has been recognized for planning and implementing successful GE Capital coregrowth strategies, acquiring and building throughout Asia but notably in Japan, while driving Six Sigma and e−Businessto deliver breakthrough productivity. Recently, he led the effort to acquire Heller Financial Services, which at $20 billionis largest−ever GE Capital acquisition. Neal is a member of the U.S. Advisory Board of the European Institute of BusinessAdministration (INSEAD) and has recently been appointed to the board of trustees of Fairfield University. Neal is also aTrustee of the Georgia Tech Foundation and is on the Board of Stamford based Soundwaters. He has been the chairman ofthe GE Capital New York/Connecticut/New Jersey tri−state United Way campaign and participates in several localcommunity volunteer activities through GE ELFUN. Neal received his B.S. degree from the Georgia Institute ofTechnology in 1975.
Source: Company Web Site, 2007
John G. Rice, Age 50
Other Company Affiliations
Company Title Salary Bonus
GE Industrial President and CEO, GE Infrastructure −− −−
GE Infrastructure President and CEO −− −−
General Electric Capital Corporation Director −− −−
Recent Work Highlights
General Electric CompanyTitle held since 2006: Vice Chairman; President and CEO, GE Infrastructure♦ 2005 − 2006, Vice Chairman; President and CEO, GE Industrial♦ 2000 − 2005, President and CEO, GE Energy♦
•
Biography
John G. Rice is Vice Chairman of GE and President & CEO of GE Infrastructure. This business segment includes Energy,Aviation, Rail, Oil & Gas, Water, Energy Financial Services, and Aviation Financial Services. Prior to his current
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position, Rice served as Vice Chairman of GE and President & CEO of GE Industrial. Rice began his General Electriccareer in 1978 as a member of the Financial Management Program, moving to the GE Corporate Audit Staff in 1981. In1984 he joined GE Appliances, having various assignments in operations and consumer service. In 1992 Rice was namedPresident and CEO of GE's Canadian appliance affiliate in Toronto, Canada. He assumed leadership of the GE CorporateAudit Staff in 1994, and a year later was appointed President of GE Plastics Asia/Pacific business headquarters inSingapore. Rice was appointed President and CEO, GE Transportation Systems in Erie, Pennsylvania, in September 1997.Rice was named President and CEO of GE Energy, a leading supplier of power generation technology, energy services,and energy management systems in November of 2000 through June of 2005. Rice earned a Bachelor of Arts degree ineconomics from Hamilton College in Clinton, New York, and currently serves on the Board of Trustees there. In addition,Mr. Rice is a trustee of Emory University, the Woodruff Arts Center, the Georgia Research Alliance, and the WalkerSchool in Marietta, Georgia. In addition, he is past chairman of the Metro Atlanta Chamber of Commerce. He and hisfamily live in Roswell, Georgia.
Source: Company Web Site, 2007
Lloyd G. Trotter, Age 61
Title held since 2006: Vice Chairman; President and CEO, GE Industrial
Other Company Affiliations
Company Title Salary Bonus
GE Industrial President and CEO −− −−
Recent Work Highlights
General Electric Company2005 − 2006, EVP and Senior Operations Officer♦ Title held until 2005: President and CEO, GE Consumer and Industrial♦
•
Biography
Lloyd G. Trotter is Vice Chairman of GE and President & CEO of GE Industrial. This $33 billion business segmentincludes Consumer & Industrial, Plastics, Security, Sensing & Inspection Technologies, GE Fanuc Automation andEquipment Services. Prior to this, Trotter was Executive Vice President, Operations, where he was responsible for leadingefforts to lower structural cost and improve operational excellence across GE's businesses. Previously, Trotter wasPresident and CEO of GE Consumer & Industrial, a $14 billion business that spans the globe as an industry leader inmajor appliance and lighting products, and in integrated electrical distribution equipment and systems. Trotter assumedleadership of that business following the merger of GE's Consumer Products, Industrial Systems and Supply businesses inJanuary of 2004. Trotter began his GE career in 1970 as a field service engineer with GE Lighting. He subsequently heldproduction and technology positions of increasing responsibility in GE's Lighting, Gas Turbine, Appliances and ElectricalDistribution & Control (ED&C) businesses. He was elected to the position of Vice President and General Manager ofManufacturing for ED&C in 1990. In that role, he was responsible for the entire manufacturing process and for theintegration of 40 production facilities throughout the world. In 1992, he became President and Chief Executive Officer ofED&C. He was named a GE Senior Vice President and the President and Chief Executive Officer of the new IndustrialSystems business in 1998 when ED&C merged with GE Industrial Controls Systems. Trotter is a founding member ofGE's African American Forum and is actively involved in numerous professional and community organizations. Herepresents GE for America's Promise, an organization whose aim is to increase volunteerism in support of youth, foundedby Secretary of State Colin Powell. He is on the boards of the National Association of Manufacturers, the National ActionCouncil for Minorities in Engineering (NACME), and the GE Foundation. Trotter is regularly recognized for his
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on−going commitment to volunteerism and mentoring. Trotter graduated from Cleveland State University with abachelor's degree in Business Administration in 1972. In 2001, he received an honorary doctorate degree in BusinessAdministration from that school. He resides in Connecticut with his wife Teri.
Source: Company Web Site, 2007
Keith S. Sherin, Age 48
Title held since 2006: SVP Finance and CFO
Other Company Affiliations
Company Title Salary Bonus
General Electric Capital Corporation CFO and Director −− −−
Recent Work Highlights
General Electric Company1998 − 2006, SVP, Finance and CFO♦
•
Biography
Keith Sherin joined the GE Financial Management Program in Medium Steam Turbine after graduating from theUniversity of Notre Dame in 1981. After three years, he joined the Corporate Audit Staff where he progressed toExecutive Audit Manager and later Manager, Programs and Planning. Sherin earned an M.B.A. from Columbia Universityin 1991 and was promoted to Manager, Finance for Commercial Engine Operations at GE Aircraft Engines in early 1992.In mid−1993, Sherin was named Director, Finance for GE Plastics Europe, located in Bergen op Zoom, The Netherlands.In the fall of 1995, Sherin joined GE Medical Systems as Manager−Global Finance and Financial Services and waspromoted to Vice President−Finance & Financial Services Operation for GEMS in June 1996. Sherin has been SeniorVice President, Finance, and Chief Financial Officer for General Electric Company since December 1998.
Source: Company Web Site, 2007
John F. Lynch, Age 54
Title held since 2007: SVP Human Resources
Biography
Lynch has been a GE leader for more than 15 years, the past five as the head of the human resource function for GEHealthcare. At Healthcare, Lynch helped to lead the successful integration of two major acquisitions, Amersham andInstrumentarium. Previously, Lynch headed HR at GE Global Consumer Finance, which is now GE Money. Beforejoining GE, Lynch spent 18 years as an HR leader in the commercial and retail finance subsidiary of Lloyds Bank in theUnited Kingdom. Lynch is a native of Scotland and was educated at Blairs College, Aberdeen, and at St. Andrew'sCollege.
Source: Company Press Release, December 18, 2006
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Pamela Daley, Age 54
Title held since 2004: SVP Corporate Business Development
Other Company Affiliations
Company Title Salary Bonus
General Electric Capital Corporation Director −− −−
World Wildlife Fund Director −− −−
Recent Work Highlights
General Electric Company1991 − 2004, VP and Senior Counsel, Transactions♦
•
Biography
Pamela Daley is Senior Vice President for Corporate Business Development. Daley was Senior Vice President and SeniorCounsel for Transactions from 1991 to 2004. She joined GE in 1989 as Tax Counsel. Prior to joining GE, Daley was apartner of Morgan, Lewis & Bockius, where she specialized in domestic and cross−border tax−oriented financings andcommercial transactions. She was an adjunct professor at the University of Pennsylvania Law School from 1982 through1989, teaching Federal Income Taxation of Partners and Partnerships. Daley received her B.A. degree with highest honorsfrom Princeton University in 1974 in Romance Languages and Literatures. In 1979, she graduated first in her class fromthe University of Pennsylvania Law School, where she served as Editor−in−Chief of the Law Review. She is a member ofPhi Beta Kappa and Order of the Coif. Daley serves on the Board of Directors of General Electric Capital Corporation, theGE Foundation and the World Wildlife Fund. She is also a member of the Board of Overseers of the University ofPennsylvania Law School.
Source: Company Web Site, 2007
Gary M. Reiner, Age 51
Title held since 1996: SVP and CIO
Biography
Gary M. Reiner is Senior Vice President and Chief Information Officer of GE, a position he has held since 1996. Reinerjoined GE in 1991 as Vice President−Corporate Business Development where he was responsible for evaluating newbusiness ideas and acquisitions, strategic planning, company−wide sourcing and driving best practices throughout thebusiness. In 1996, he led the company's Six Sigma Quality initiative, driving process implementation and programexecution across all GE businesses. As part of his current role, Reiner leads the GE information technology, sourcing andLean Six Sigma efforts company−wide. Reiner received a B.A. in economics from Harvard in 1976 and earned an M.B.A.from Harvard Business School in 1980. He joined the Boston Consulting Group in 1980 and was elected a partner in1986. His work there focused on strategic and process issues for high−technology businesses.
Source: Company Web Site, 2007
12
Mark M. Little, Age 53
Title held since 2005: SVP and Director of Global Research
Other Company Affiliations
Company Title Salary Bonus
GE Global Research SVP and Director −− −−
Recent Work Highlights
General Electric CompanyTitle held until 2005: President, Energy Products, GE Energy♦
•
Biography
At Global Research, some 2,500 people from virtually every major scientific and engineering discipline focus on thecompany's long−range technology needs. The organization has research facilities in the United States, India, China andGermany working in collaboration with GE businesses around the world. Prior to becoming Senior Vice President, Littlewas Vice President of GE Energy's power generation segment headquartered in Schenectady, New York. GE Energy is aworld leading supplier of power generation equipment including gas, steam, wind and hydro turbine−generators, turnkeypower plant services, gasification technologies and IGCC (integrated gasification combined cycle). In addition toSchenectady, key business locations for GE Energy include Greenville, South Carolina; Bangor, Maine; Tehachapi,California; Houston, Texas; Lachine, Canada; Salzbergen, Germany; Belfort and Bourogne, France. Mark holds B.S. andM.S. degrees in mechanical engineering from Tufts and Northeastern universities, respectively, and in 1982 earned aPh.D. in mechanical engineering at Rensselaer Polytechnic Institute.
Source: Company Web Site, 2007
Brackett B. Denniston, Age 59
Title held since 2004: SVP and General Counsel
Other Company Affiliations
Company Title Salary Bonus
American Arbitration Association, Inc. Director −− −−
General Electric Capital Corporation Director −− −−
Recent Work Highlights
General Electric CompanyTitle held until 2004: VP and Senior Counsel, Litigation and Legal Policy♦
•
Biography
Counsel. He is responsible for the worldwide GE legal organization and for all GE legal operations, reporting directly toMr. Immelt. He is a member of GE's Corporate Executive Council, the GE Capital Corporation Board of Directors and ischair of the Company's Policy Compliance Review Board. Mr. Denniston joined GE as Vice President, Senior CounselFor Litigation and Legal Policy in September 1996. Prior to joining GE, he was Chief Legal Counsel to Governor William
13
F. Weld of Massachusetts from 1993 to 1996. His responsibilities included judicial selection, litigation, criminal justiceissues and legislation. He was a partner, and earlier an associate, at Goodwin, Procter and Hoar in Boston (1974−1982,1986−1993) where he specialized in complex civil litigation, securities matters and white−collar crime. He representedparties in matters ranging from insider trading cases, pharmaceutical prosecutions, securities fraud and banking cases. Hewas a member of the firm's Executive Committee and numerous other firm committees. From 1982 to 1986, Mr.Denniston was Chief of the Major Frauds Unit of the U.S. Attorney's Office, responsible for white−collar crimeprosecutions, and a member of the Attorney General's White Collar Crime Operations Committee. He was awarded theDepartment of Justice's Director's Award for Superior Performance for his role in over one hundred successfulprosecutions. Mr. Denniston served as a law clerk to the Honorable Herbert Y. Choy of the United States Court ofAppeals for the Ninth Circuit in 1973−74. He is a summa cum laude graduate of Kenyon College and a magna cum laudegraduate of Harvard Law School, where he was an editor of the "Harvard Law Review."
Source: Company Web Site, 2007
David R. (Dave) Nissen, Age 55
SVP; President and CEO, GE Money
Other Company Affiliations
Company Title Salary Bonus
GE Money President and CEO −− −−
General Electric Capital Corporation Director; President and CEO, GE Consumer Finance−− −−
Biography
David Nissen is the President and CEO of GE Money, a leading provider of credit services to retailers, auto dealers, andconsumers in over 50 countries around the world. With assets of over $190 billion, GE Money offers private label creditcards and sales finance to the world's leading retailers and manufacturers, plus corporate cards for commercial customers,and personal loans, mortgages, automobile financing, and diversified financial products directly to consumers. Mr. Nissenjoined GE Capital in 1981 in strategic planning and business development. In 1983, he joined Card Services where heheld a variety of marketing and product leadership positions. In 1987, he was promoted to General Manager of CardServices where he was responsible for the leadership of GE's private label card business serving over 300 retailers andmanufacturers. Under Mr. Nissen's direction, Card Services expanded its product lines into commercial cards and securedlending while adding new segments such as shop−at−home, department store, and international. From 1990 to 1993, Mr.Nissen was General Manager of U.S. Consumer Financial Services. In this role he led the 10th largest U.S.Visa/MasterCard bank in the U.S. (Monogram Bank). In 1993, Mr. Nissen was asked to take GE Money around the globe.GE Money now has operations on five continents with approximately 50,000 employees. Today, GE Money is the secondlargest business in GE and one of the largest financial services businesses in the world. Mr. Nissen was named an officerof GE in 1996 and Senior Vice President of GE in 2001. In October 2003, Mr. Nissen was named one of "Ten RetailBanking Heroes" by Retail Banker International. The publication cited Mr. Nissen as one of ten individuals who helpedshape the consumer banking industry landscape during the period covering 1981−2003. Mr. Nissen holds a bachelor'sdegree from Northwestern University (Evanston, Illinois) and an MBA from the University of Chicago. He is on the boardof the Stamford Hospital Corporation, and the Financial Services Roundtable. He lives in Stamford, Connecticut, and hishobbies include golf, tennis and jet skiing.
Source: Company Web Site, 2007
14
James P. (Jim) Campbell
Title held since 2005: SVP; President and CEO, GE Consumer & Industrial
Other Company Affiliations
Company Title Salary Bonus
GE Consumer & Industrial President and CEO −− −−
GE Industrial President, GE Consumer & Industrial −− −−
Recent Work Highlights
General Electric Company2004 − 2005, President and CEO, GE Consumer and Industrial, Americas♦ 2002 − 2004, President and CEO, GE Consumer Products♦ Title held until 2002: SVP; President and CEO, GE Appliances♦
•
Biography
James P. Campbell is President and Chief Executive Officer of GE Consumer & Industrial, a $14 billion global businessthat employs 60,000 people around the world in more than 100 locations. Consumer & Industrial spans the globe as anindustry leader in major appliance and lighting products, and in integrated electrical distribution equipment and systems.Before assuming his current position in November 2005, Campbell was President and CEO, GE Consumer &Industrial−Americas. In that role, he directed the manufacture, marketing and sale of appliances, lighting and industrialproducts across North and South America. He assumed the leadership of this $9 billion division following the merger ofGE Consumer Products and GE Industrial Systems in January 2004. Campbell joined GE in 1981 as a Sales/Marketingtrainee in GE Appliances' Northeast Region. He quickly moved into management roles as an area sales leader,merchandising manager and regional sales manager. Following his field experience, Campbell moved in 1992 to GEAppliances' Louisville headquarters to become Manager, Microwave Cooking Products and Product Manager, Built−InCooking Products. He subsequently moved into roles of increasing responsibility leading marketing, sales and productmanagement organizations before being appointed Vice President of Sales and Marketing and a GE Company Officer in1999. In 2001 he was named President and CEO of GE Appliances. Campbell assumed the role of President and CEO ofGE Consumer Products in September 2002 when GE merged its appliances and lighting businesses. Campbell earned aBachelor of Science degree in Marketing from St. John's University and an MBA in Marketing Management from HofstraUniversity. He is on the boards of the National Electrical Manufacturers Association (NEMA) and the FrazierInternational History Museum and is an active member of the Louisville GE Volunteers chapter. Campbell and his familyreside in Louisville, Kentucky.
Source: Company Web Site, 2007
Joseph M. (Joe) Hogan, Age 50
SVP; President and CEO, GE Healthcare
Other Company Affiliations
Company Title Salary Bonus
GE Healthcare President and CEO −− −−
15
Biography
Joe Hogan is Senior Vice President and CEO of GE Healthcare, a $14 billion segment of General Electric Company. GEHealthcare is the global leader in medical diagnostic technology and biosciences. Joe began his career at GE in 1985,advancing through a series of leadership roles in sales, marketing and product development at GE Plastics. In March 1998,Joe was named President and CEO of GE Fanuc Automation North America, Inc., a global supplier of industrial controlssystems headquartered in Charlottesville, VA, and a joint venture between GE and FANUC, Ltd. Japan. Joe was namedPresident and CEO of GE Healthcare Technologies (formerly GE Medical Systems) in November 2000. Joe earned a B.S.degree in Business Administration from Geneva College and an MBA from Robert Morris University. He sits on theBoards of the New York Academy of Medicine, the Multiple Myeloma Research Foundation and the Advisory Board ofthe CDC (Center for Disease Control). Joe and his wife have three sons and they reside in Oconomowoc, Wisconsin.
Source: Company Web Site, 2007
Michael E. Pralle, Age 49
Title held since 2005: SVP; President and CEO, GE Real Estate, GE Commercial Finance
Other Company Affiliations
Company Title Salary Bonus
GE Commercial Finance President and CEO, GE Real Estate −− −−
GE Real Estate President and CEO −− −−
General Electric Capital Corporation President and CEO, Real Estate, GE Commercial Finance−− −−
Recent Work Highlights
General Electric Company2003 − 2005, President and CEO, Real Estate, GE Commercial Finance♦ Title held until 2003: President and CEO, GE Capital Real Estate♦
•
Biography
Michael E. Pralle is President and CEO of GE Real Estate, one of the industry's leading global sources for commercialreal estate capital through Structured Finance, Equity and Capital Markets products. GE Real Estate has a portfolio ofover $18 billion in assets, and is invested in more than 2,500 properties in 15 countries around the world. Prior tobecoming President of GE Real Estate Michael served as President of GE Equity, the business responsible for makingcommon equity, preferred stock, and convertible debt investments in private companies in the US, Europe and Asia. GEEquity is a global business with over $5 billion in assets invested in more than 300 companies in 25 countries around theworld. Michael served as President GE Capital Asia Pacific, where he supervised GE Capital's activities in 15 countriesacross North and Southeast Asia. He held this position from August, 1993 until March, 1996. From July, 1991 throughAugust, 1993, Michael was Vice President and General Manager of Distribution Financial Services, a $1.5 Billioncommercial automobile financing unit. He joined GE Capital in August, 1989 as Vice President Business Development onthe corporate headquarters staff responsible for M&A activities for half the GE Capital businesses. Prior to joining GE,Michael spent six years with management consultants, McKinsey and Co., working in their London and Hong Kongoffices. Michael attended Harvard University where he received his B.A. in Economics, magna cum laude, in 1978, andthe Stanford Graduate School of Business where he received his M.B.A. in 1982 and was awarded an Arthur D. LittleFellowship. Michael serves on the Board of Family Centers of Stamford and Greenwich, a non−profit community serviceorganization and has been a member of Young President's Organization since 1994.
16
Source: Company Web Site, 2006
Mark W. Begor, Age 47
SVP; President and CEO, Americas, GE Money
Other Company Affiliations
Company Title Salary Bonus
GE Money President and CEO, Americas −− −−
General Electric Capital Corporation President and CEO, Americas, GE Consumer Finance−− −−
Biography
Mark Begor is Card Services President and Chief Executive Officer, GE Card Services, based in Stamford, Conn. In hiscurrent role, he is responsible for partnering with clients, as well as functional and process leaders, to help identify newopportunities to drive business growth and operational excellence. Mark came to Card Services as Chief Operating Officerin January 2002 from NBC, where he served as Executive Vice President and Chief Financial Officer, reporting to NBCChairman Bob Wright. Mark also served as the President for NBC Business Development and Interactive Media. While atNBC, Mark led all financial activities for NBC's $5.5 billion network, cable, station, international and Internet businesses,as well as business development and information technology. Most recently, he oversaw the network's pending $2.7billion deal to acquire Telemundo Communications Group Inc.An NBC executive since 1998, Begor handled a variety ofsignificant business transactions at NBC, including the company's acquisition of equity stakes in Paxson Communicationsand ValueVision International. Before coming to NBC, Begor spent 18 years with General Electric. He was appointed aGE Company officer in December 1996 after spending two years as GE's manager of Investor Communications. While inthe Investor Communications role, Begor reported to the CEO and CFO of GE and was a member of GE's CorporateExecutive Council. Named Investor Relations Officer of the Year in 1997 and 1998 by Investor Relations magazine,Begor successfully led the company's communications with GE institutional and individual investors and WallStreet.Begor began his career with GE in 1980 in the Financial Management Program. He joined GE's corporate auditstaff in 1983, rising to the post of executive audit manager in 1987. Begor moved to GE Plastics in 1989 to becomemanager of Operations Analysis and Financial Support and was appointed director of Finance and Business Developmentfor GE Plastics Pacific based in Singapore in 1990. In 1993, he was named general manager of GE Plastics' GlobalSourcing and Petrochemicals operation, where he led the revitalization of the global plastics sourcing process until beingnamed to the investor communications position in 1995.Begor is a graduate of Syracuse University and holds a master'sdegree in business administration from Rennselaer Polytechnic Institute. He lives in Wilton, Conn. with his wife, Kristen,and their three children.
Source: Company Web Site, 2004
Yoshiaki Fujimori, Age 54
SVP; President and CEO, Asia
Other Company Affiliations
Company Title Salary Bonus
GE Money President and CEO, Asia −− −−
General Electric Capital Corporation President and CEO, Asia, GE Consumer Finance −− −−
17
Biography
Yoshiaki Fujimori is President and CEO, Asia responsible for working on behalf of all GE businesses to expand customerrelationships and to develop new business markets across Asia. He is based in Tokyo, Japan. Fujimori joined GE Japan inOctober 1986 as Manager, Business Development. Since 1988 he has been in GE Medical Systems, successively holdingGeneral Manager and Global Manager positions in key segments including Nuclear Medicine, CT and MR. He spentseven years at the company's global headquarters in Milwaukee, WI, before returning to Tokyo as President and CEO, GEMedical Systems−Asia in October 1997. He was named a GE Company Vice President in 1997. From May 2001 toJanuary 2003, Fujimori was President and CEO of GE Plastics, headquartered in Pittsfield, MA. Prior to joining GE, hespent 11 years with Nissho Iwai Corporation as an analyst and manager. Fujimori attended the University of Tokyo andreceived a bachelor's degree in petroleum engineering in 1975. He received an M.B.A. from Carnegie−Mellon GraduateSchool of Business.
Source: Company Web Site, 2007
Charlene T. Begley, Age 39
Title held since 2005: SVP; President and CEO, GE Plastics, GE Industrial
Other Company Affiliations
Company Title Salary Bonus
GE Industrial President and CEO, GE Plastics −− −−
GE Plastics President and CEO −− −−
Recent Work Highlights
General Electric Company2003 − 2005, President and CEO, GE Transportation, Rail♦
•
Biography
Charlene Begley is president and chief executive officer of GE Plastics, which has its headquarters at Pittsfield, Mass. Shewas named to this position in July 2005. GE Plastics is a $7 billion global plastics materials supplier and distributor,serving customers in a variety of industries including aerospace, appliances, automotive, building and construction, datastorage and optical media, medical, electrical and electronics devices, telecommunications, computers and peripheraldevices, outdoor vehicles and devices, and packaging. The Plastics business employs about 11,000 people and operatessome 60 manufacturing and technology facilities in 20 countries worldwide. Begley began her career at General Electricin 1988. She has held a variety of leadership roles within the company including vice president of operations at GECapital Mortgage Services, quality leader and later chief financial officer at GE Transportation Systems, director offinance for GE Plastics−Europe, vice president of the Corporate Audit Staff and CEO at GE FANUC Automation. InJanuary 2003, she was named president and CEO of GE Transportation's rail business. Begley serves on the WorldEconomic Forum's Young Global Leaders and the Business Advisory Council at the University of Vermont. She is agraduate of the University of Vermont.
Source: Company Web Site, 2007
18
Scott C. Donnelly, Age 45
Title held since 2005: SVP; President and CEO, GE Aircraft Engines, GE Infrastructure
Other Company Affiliations
Company Title Salary Bonus
GE Aviation President and CEO −− −−
GE Infrastructure President and CEO, GE Aircraft Engines −− −−
Recent Work Highlights
General Electric CompanyTitle held until 2005: SVP, Global Research and Development♦
•
Biography
Scott C. Donnelly is president and CEO for GE's Aviation business. Prior to his July 2005 appointment, Donnelly wassenior vice president and director of GE Global Research, one of the world's largest and most diversified industrialresearch organizations, with facilities in the United States, India, China and Germany. Donnelly joined GE in 1989 asmanager of Electronics Design Engineering for GE's Ocean Systems Division in Syracuse, NY. He went on to serve inleadership roles for the company, including engineering management positions with then−GE division of Martin Mariettain both Australia and the U.S. In 1995, he moved to GE's Industrial Control Systems business, where he held leadershippositions as manager of Technology and System Development, and later general manager of Industrial SystemsTechnology. Donnelly was named a vice president of General Electric in 1997, responsible for Global TechnologyOperations at GE Healthcare. Donnelly is a 1984 graduate of the University of Colorado at Boulder, where he earned abachelor's degree in electrical and computer engineering. He serves on the Engineering Advisory Committees at Stanfordand Cornell Universities, the Center for Innovation in Minimally Invasive Therapy at Massachusetts General Hospital andis a member of the NIST Visiting Committee on Advanced Technology.
Source: Company Web Site, 2007
John Krenicki, Age 44
Title held since 2005: SVP; President and CEO, GE Energy, GE Infrastructure
Other Company Affiliations
Company Title Salary Bonus
GE Aero Energy President and CEO −− −−
GE Energy President and CEO −− −−
GE Infrastructure President and CEO, GE Energy −− −−
Recent Work Highlights
General Electric Company2003 − 2005, President and CEO, GE Advanced Materials♦
•
19
Biography
John Krenicki, Jr., is President and CEO of GE Energy, a leading supplier of power generation technology, energyservices and energy management systems. He was named to his current position in July 2005. Krenicki's General Electriccareer began in the Technical Marketing Program. Since then, he has progressed in the company through leadership rolesat GE Plastics, Silicones and Structured Products. Krenicki was the CEO of GE−Bayer Silicones (a GE joint venture) inErkarth, Germany, from 1997 to 1999. At that time, he was named a GE Company Officer and became a Vice Presidentand General Manager of the Americas for GE Lighting. Krenicki was Vice President and General Manager of GESuperabrasives in Worthington, Ohio, before being promoted to President and CEO of GE Transportation Systems in June2000. In January 2003, he was named a Senior Vice President of GE and President and CEO of GE Plastics. A year later,GE Silicones and GE Quartz were combined with GE Plastics to form GE Advanced Materials. Krenicki was Presidentand CEO of GE Advanced Materials until July 2005. Krenicki earned a Bachelor of Science Degree in MechanicalEngineering from the University of Connecticut in 1984. He received a Master of Science Degree in Management fromPurdue University.
Source: Company Web Site, 2007
Ronald R. (Ron) Pressman, Age 49
Title held since 2006: SVP; President and CEO, GE Asset Management
Other Company Affiliations
Company Title Salary Bonus
General Electric CapitalCorporation
Director; President and CEO, GE Insurance Solutions and EmployersReinsurance Corporation
−− −−
Recent Work Highlights
General Electric CompanyTitle held until 2006: SVP; President and CEO, GE Insurance Solutions and Employers ReinsuranceCorporation
♦ •
Biography
Pressman began his GE career in 1980 after graduating from Hamilton College. Key leadership roles in GE have includedleading GE Capital Real Estate from 1997 to 2000. Prior to this he led GE Power Systems' Product Businesses andTechnology Programs. He spent six years in Europe as CEO of GE Power Systems Europe and General Manager of GE'sCentral and Eastern European operations. Prior to his European experience, Ron spent three years on Wall Street leadingthe financial team of Kidder Peabody and Co. after GE's acquisition in 1987. Most recently, Ron was Chairman, Presidentand CEO of GE Insurance Solutions, one of the world's leading providers of commercial insurance, reinsurance and riskmanagement services. Ron led the recent sale of major portions of this business to Swiss Re and Berkshire Hathaway. Thesale of GE Insurance Solutions to Swiss Re is expected to close in the second quarter of 2006.
Source: Company Press Release, May 15, 2006
Deborah (Deb) Elam, Age 44
Title held since 2006: VP and Chief Diversity Officer
20
Biography
Deborah Elam is Vice President & Chief Diversity Officer. Most recently, Elam was GE's Manager of Diversity &Inclusive Leadership. From 2000 to 2002, Elam was Managing Director of Human Resources for Corporate FinancialServices within GE Commercial Finance. From 1997 to 2000, Elam was Managing Director of Human Resources for GECapital Markets Services. She started with GE as a member of the Human Resources Leadership Program (HRLP) in1987. Elam received her Masters' degree in Public Administration from Southern University in 1987 and her Bachelors'degree in Sociology from Louisiana State University in 1984.
Source: Company Press Release, February 24, 2006
Q. Todd Dickinson
VP and Chief Intellectual Property Counsel
Biography
Todd has more than 25 years of experience as an intellectual property lawyer, most recently as a partner in the law firm ofHowrey Simon Arnold & White, where he helped lead the Intellectual Property Practice Group, focusing on counseling,licensing, prosecution, strategic portfolio management and government relations issues involving intellectual property.Todd also served as the Under Secretary of Commerce for Intellectual Property and Director of the U.S. Patent andTrademark Office as well as the principal Executive Branch policy advisor on intellectual property matters. Todd is agraduate of Allegheny College and the University of Pittsburgh School of Law.
Source: Company Press Release,
Daniel S. (Dan) Henson, Age 44
Title held since 2006: VP and Chief Marketing Officer
Recent Work Highlights
General Electric Company2005 − 2006, Chief Commercial Officer, GE Commercial Finance♦ 2002 − 2005, President and CEO, GE Vendor Financial Services, GE Commercial Finance♦ Title held until 2002: President and CEO, GE Capital Fleet and Auto Financial Services♦
•
Biography
Dan Henson was named GE's Chief Marketing Officer in January 2006. He is responsible for driving sales and marketingexcellence, sales force effectiveness, enterprise accounts, strategic marketing, advertising, branding and communications.He also leads cross−business marketing and sales initiatives including Imagination Breakthroughs, ecomagination andGE's Experienced Commercial Leadership Program. Dan, a 19−year GE veteran, previously served as the ChiefCommercial Officer of GE Commercial Finance. Other leadership roles included President and Chief Executive Officer ofGE Vendor Financial Services, President & CEO of GE Capital Fleet Services and President and General Manager of GECapital Auto Financial Services. In 1999, he was named an officer of GE. Dan began his career with General Electric in1987 as a District Marketing Manager for Vendor Financial Services, where he worked in a variety of sales, businessdevelopment and management roles. Dan spent six years outside the U.S., leading GE teams in London for EuropeanEquipment Finance and in Mexico City for Commercial Equipment Finance. In 1998, he was named Chief Quality Officerof GE Capital, overseeing all Six Sigma quality initiatives. Dan is a graduate of George Washington University's School
21
of Government and Business Administration in Washington, D.C. He lives in Connecticut with his wife and two children.
Source: Company Web Site, 2007
22
Overview
From turbines to TV, from household appliances to power plants, General Electric (GE) is plugged in to most of thebusinesses that have shaped the modern world. The company produces −− take a deep breath −− aircraft engines,locomotives and other transportation equipment, kitchen and laundry appliances, lighting, electric distribution and controlequipment, generators and turbines, and medical imaging equipment. GE is also one of the largest financial servicescompanies in the US, offering commercial finance, consumer finance, and equipment financing. Other operations includethe NBC television network.
GE is organized into six−industry−focused lines: GE Money, GE Commercial Finance, GE Healthcare, GE Infrastructure,GE Industrial, and NBC Universal (80% owned).
CEO Jeff Immelt is emerging from the considerable shadow of his predecessor, Jack Welch, by not being shy aboutmaking sweeping changes. He has diverged somewhat from Welch's slavish obsession with the bottom line andencourages managers to innovate and take more risks. As a result, GE has been growing in such areas as biotech,renewable energy, nanotechnology, and digital technology. Immelt has, however, taken a page from his former boss'playbook by pursuing growth outside the US, particularly in emerging markets like India, China, Eastern Europe, Africa,and the Middle East.
Immelt has set about reshaping GE, spinning off its life and mortgage insurance businesses into a new entity, GenworthFinancial, which went public in 2004; it completely divested its remaining stake in Genworth in 2006. Also that year, GEsold off most of its remaining insurance businesses, including GE Insurance Solutions and Employers Reinsurance, in asale to Swiss Re. The company kept its US life reinsurance business.
Citing rising commodities costs, GE plans to sell its Advanced Materials unit, which makes silicone, quartz, and ceramicsproducts, to Apollo Management and has indicated it will unload its plastics division as well.
Meanwhile, GE has also been building some of its traditional businesses through acquisitions. In early 2007 thecompany's aviation division acquired aircraft systems manufacturer Smiths Aerospace from Smiths Group. GE Energybought oil and gas production equipment supplier Vetco Gray and US retail natural gas distribution network of KinderMorgan, while GE Industrial struck an agreement to buy Microwave Data Systems. GE Healthcare is buying thediagnostics business of Abbott Labs, adding to another growth segment for GE.
Also in 2007 GE announced it is acquiring PHH Corporation; GE will retain the company's fleet management unit, PHHArval, but will sell PHH Mortgage to Blackstone Group.
23
History
General Electric (GE) was established in 1892 in New York, the result of a merger between Thomson−Houston andEdison General Electric. Charles Coffin was GE's first president, and Thomas Edison, who left the company in 1894, wasone of the directors.
GE's financial strength (backed by the Morgan banking house) and its research focus contributed to its initial success.Early products included such Edison legacies as light bulbs, elevators, motors, toasters, and other appliances under the GEand Hotpoint labels. In the 1920s GE joined AT&T and Westinghouse in a radio broadcasting venture, Radio Corporationof America (RCA), but GE sold off its RCA holdings in 1930 because of an antitrust ruling.
By 1980 GE had reached $25 billion in revenues from plastics, consumer electronics, nuclear reactors, and jet engines.But it had become rigid and bureaucratic. Jack Welch became president in 1981 and shook up the company. Hedecentralized operations and adopted a strategy of pursuing only high−achieving ventures and dumping those that didn'tperform. GE shed air−conditioning (1982), housewares (1984), and semiconductors (1988), and with the proceedsacquired Employers Reinsurance (1984); RCA, including NBC (1986, but sold RCA in 1987); CGR medical equipment(1987); and investment banker Kidder, Peabody (1990).
In the early 1990s GE grew its lighting business. It bought mutual fund wholesaler GNA in 1993, and GE InvestmentManagement (now GE Financial Network) began selling mutual funds to the public.
GE sold scandal−plagued Kidder, Peabody to Paine Webber in 1994. General Electric Capital Services (GECS) expandedits lines, buying Amex Life Insurance (Aon's Union Fidelity unit) and Life Insurance Co. of Virginia in 1995 and FirstColony the next year. The company sold its struggling GEnie online service in 1996 and formed an NBC and Microsoftventure, the MSNBC cable news channel. In 1997 GE Engine Services bought aircraft engine maintenance firmsGreenwich Air Services and UNC.
GE acquired Lockheed Martin's medical imaging unit in 1997 and added to the medical systems business with the 1998purchase of Marquette Medical Systems. In 1998 GECS became the first foreign company to enter Japan's life insurancemarket when it bought assets from Toho Mutual Life Insurance and set up GE Edison Life.
In 1999 GECS bought the 53% of Montgomery Ward it didn't already own, along with the retailer's direct−marketing arm,as Montgomery Ward emerged from bankruptcy. (Ward declared bankruptcy again in 2000.) In 2000 it reorganized GEInformation Systems to form an e−commerce unit, Global eXchange Services (GXS). (GE sold 90% of GXS to buyoutfirm Francisco Partners in 2002.)
Later in 2000 the company announced its biggest acquisition of the Welch era. Moving in at the last minute, GE trumpeda rival bid from United Technologies and agreed to pay $45 billion in stock for manufacturing giant HoneywellInternational and to assume $3.4 billion in Honeywell debt.
Welch, by then viewed as one of the best corporate leaders in the US, had agreed to postpone his retirement from April2001 until the end of that year in order to oversee the completion of the Honeywell acquisition. But European regulators,concerned about the potential strength of the combined GE−Honeywell aircraft−related businesses, blocked theHoneywell deal that summer. Welch then stepped down, and Jeff Immelt, formerly president and CEO of GE MedicalSystems, succeeded him in September 2001.
Also in 2001 GE Capital expanded by buying commercial lender Heller Financial for $5.3 billion. The next year formerbusiness segment GE Industrial Systems acquired electronic security company Interlogix for $777 million.
24
In a move intended to provide a clearer picture for investors, Immelt in 2002 divided the former GE Capital into four units−− GE Commercial Finance, GE Consumer Finance, GE Equipment Management, and GE Insurance.
In 2003 GE acquired UK−based Amersham, a medical diagnostics and life sciences company, as well as First NationalBank, Allbank, and the retail sales finance business of Conseco.
25
Industry Information
Hoover's Industries
Aerospace &DefenseAerospace & Defense Parts Manufacturing♦
•
Industrial ManufacturingIndustrial Equipment Leasing♦ Industrial Machinery & Equipment Manufacturing♦ Lighting & Other Fixture Manufacturing♦
•
MediaTelevision
Television Cable, Pay & Broadcast Networks◊ ♦
•
Health CareHealth Care Products
Medical Devices◊ ♦
•
Automotive &TransportContainer Leasing♦ Rail & Trucking Equipment Manufacturing♦
•
Consumer Products ManufacturersAppliances♦
•
Primary SIC Code
6159: Misc. business credit institutions•
Primary NAICS Code
522298: All Other Nondepository Credit Intermediation•
26
Competitors
Top Competitors
Citigroup• Philips Electronics• Siemens AG•
All Competitors
AIG• ALSTOM• Agilent Technologies• Bank of America• CBS Corp• CIGNA• CIT Group• Capital One• Caterpillar• Citigroup• Cooper Industries• Disney• Electrolux• General Motors• General Re• Hitachi• ITT Corporation• JPMorgan Chase• Jacuzzi Brands• Johnson Controls• Matsushita• News Corp.• Philips Electronics• Polaroid• Raytheon• Rockwell Automation• Rohm and Haas• Rolls−Royce• Siemens AG• Sony• Textron• ThyssenKrupp• Toshiba• United Technologies• Viacom• Washington Group• Wells Fargo• Whirlpool•
27
Products and Operations
2006 Sales
$ mil. % of total
Infrastructure 47,429 29
Industrial 33,494 20
Commercial finance 23,792 15
GE Money 21,759 13
Healthcare 16,562 10
NBC Universal 16,188 10
Corporate items & eliminations 4,167 3
Total 163,391100
2006 Sales
$ mil. % of total
Sales of goods 64,297 39
GE Capital Services60,154 37
Sales of services 36,403 22
Other 2,537 2
Total 163,391100
Selected Subsidiaries
Amersham plc (UK)• Bently Nevada, LLC• Caribe GE International of Puerto Rico, Inc.• Cardinal Cogen, Inc.• Datex−Ohmeda, Inc.• GE Canada Company• GE Drives and Controls, Inc.• GE Druck Holdings Limited (UK)• GE Energy Europe, B.V. (the Netherlands)• GE Energy Parts, Inc.• GE Energy Products France SNC• GE Energy Services, Inc.• GE Energy Services−Dallas, LP• GE Engine Services Distribution, LLC• GE Engine Services, Inc.• GE Fanuc Automation Corporation• GE Healthcare AS (Norway)• GE Healthcare Bio−Sciences AB (Sweden)• GE Healthcare Finland Oy• GE Healthcare Ltd. (UK)• GE Hungary Co., Ltd.• GE Infrastructure, Inc.• GE Ionics, Inc.•
28
GE Lighting/Plastics Austria GmbH & Co KG• GE Medical Systems Global Technology Company, LLC• GE Medical Systems Information Technologies, Inc.• GE Medical Systems, Inc.• GE Medical Systems, Ultrasound & Primary Care Diagnostics LLC• GE Military Systems• GE Osmonics, Inc.• GE Packaged Power L.P.• GE Security, Inc.• GE Transportation Parts, LLC• GE Transportation Systems Global Signaling, LLC• GE Wind Energy, LLC• General Electric Capital Services, Inc.•
General Electric Capital Corporation• General Electric International, Inc.• Granite Services, Inc.• NBC Universal• Nuclear Fuel Holding Co., Inc.• Nuovo Pignone Holdings S.p.A. (99%, Italy)• OEC Medical Systems, Inc.• PII Limited (UK)• Reuter−Stokes, Inc.• Unison Industries LLC• Viceroy, Inc.•
29
Company Financials
Financial Overview
Company TypePublic − NYSE: GEHeadquarters
Fiscal Year−End December
Financial Filings SEC
2006 Sales (mil.) $163,391.0
1−Year Sales Growth 8.8%
2006 Net Income (mil.) $20,829.0
1−Year Net Income Growth 24.6%
30
Annual Income Statement
All amounts in millions of US Dollars unless otherwise noted.
Dec 06 Dec 05 Dec 04 Dec 03 Dec 02
Revenue 163,391.0 150,242.0 152,866.0 134,187.0 131,698.0
Cost of Goods Sold 74,110.0 66,814.0 61,759.0 51,206.0 81,570.0
Gross Profit 89,281.0 83,428.0 91,107.0 82,981.0 50,128.0
Gross Profit Margin 54.6% 55.5% 59.6% 61.8% 38.1%
SG&A Expense 35,309.0 36,048.0 49,278.0 45,399.0 14,697.0
Depreciation & Amortization 9,158.0 8,538.0 8,385.0 6,956.0 5,998.0
Operating Income 44,814.0 38,842.0 33,444.0 30,626.0 29,433.0
Operating Margin 27.4% 25.9% 21.9% 22.8% 22.3%
Nonoperating Income −− −− −− −− −−
Nonoperating Expenses 19,286.0 15,138.0 12,036.0 10,432.0 10,216.0
Income Before Taxes 24,620.0 22,718.0 20,480.0 19,904.0 18,891.0
Income Taxes 3,954.0 4,085.0 3,661.0 4,315.0 3,758.0
Net Income After Taxes 20,666.0 18,633.0 16,819.0 15,589.0 15,133.0
Continuing Operations 20,666.0 18,633.0 16,819.0 15,589.0 15,133.0
Discontinued Operations 163.0 (1,922.0) −− −− −−
Total Operations 20,829.0 16,711.0 16,819.0 15,589.0 15,133.0
Total Net Income 20,829.0 16,711.0 16,819.0 15,002.0 14,118.0
Net Profit Margin 12.7% 11.1% 11.0% 11.2% 10.7%
Diluted EPS from Continuing Operations ($) −− −− −− −− −−
Diluted EPS from Discontinued Operations ($) −− −− −− −− −−
Diluted EPS from Total Operations ($) −− −− −− −− −−
Diluted EPS from Total Net Income ($) 2.01 1.57 1.60 1.49 1.41
Dividends per Share 1.03 0.91 0.82 0.77 0.73
Quarterly Income Statement
All amounts in millions of US Dollars unless otherwise noted.
Quarter EndingMar 07
Quarter EndingDec 06
Quarter EndingSep 06
Quarter EndingJun 06
QuarterEndingMar 06
Revenue 40,195.0 44,621.0 40,693.0 40,048.0 38,029.0
Cost of Goods Sold 16,851.0 19,838.0 18,468.0 18,143.0 17,661.0
Gross Profit 23,344.0 24,783.0 22,225.0 21,905.0 20,368.0
Gross Profit Margin 58.1% 55.5% 54.6% 54.7% 53.6%
31
SG&A Expense 9,424.0 9,258.0 8,726.0 8,849.0 8,476.0
Depreciation & Amortization 2,585.0 2,486.0 2,294.0 2,246.0 2,132.0
Operating Income 11,335.0 13,039.0 11,205.0 10,810.0 9,760.0
Operating Margin 28.2% 29.2% 27.5% 27.0% 25.7%
Nonoperating Income −− −− −− −− −−
Nonoperating Expenses 5,699.0 5,272.0 5,139.0 4,527.0 4,348.0
Income Before Taxes 5,417.0 7,547.0 5,851.0 6,048.0 5,174.0
Income Taxes 907.0 968.0 889.0 1,100.0 997.0
Net Income After Taxes 4,510.0 6,579.0 4,962.0 4,948.0 4,177.0
Continuing Operations 4,510.0 6,579.0 4,962.0 4,948.0 4,177.0
Discontinued Operations (2.0) (3.0) (95.0) (2.0) 263.0
Total Operations 4,508.0 6,576.0 4,867.0 4,946.0 4,440.0
Total Net Income 4,508.0 6,576.0 4,867.0 4,946.0 4,440.0
Net Profit Margin 11.2% 14.7% 12.0% 12.4% 11.7%
Diluted EPS from ContinuingOperations ($)
−− −− −− −− −−
Diluted EPS from DiscontinuedOperations ($)
−− −− −− −− −−
Diluted EPS from TotalOperations ($)
−− −− −− −− −−
Diluted EPS from Total NetIncome ($)
0.44 0.64 0.47 0.48 0.42
Dividends per Share 0.28 0.28 0.25 0.25 0.25
32
Annual Balance Sheet
All amounts in millions of US Dollars unless otherwise noted.
Assets Dec 06 Dec 05 Dec 04 Dec 03 Dec 02
Current Assets
Cash 62,101.0 9,011.0 15,328.0 133,388.0 8,910.0
Net Receivables 13,954.0 14,851.0 50,713.0 47,330.0 53,710.0
Inventories 11,401.0 10,474.0 9,778.0 8,752.0 9,247.0
Other Current Assets −− −− −− −− −−
Total Current Assets 87,456.0 34,336.0 75,819.0 189,470.0 71,867.0
Net Fixed Assets 74,966.0 67,528.0 66,775.0 53,382.0 47,204.0
Other Noncurrent Assets 534,817.0 571,457.0 607,913.0 404,631.0 456,173.0
Total Assets 697,239.0 673,321.0 750,507.0 647,483.0 575,244.0
Liabilities and Shareholder's Equity Dec 06 Dec 05 Dec 04 Dec 03 Dec 02
Current Liabilities
Accounts Payable 29,823.0 46,771.0 30,995.0 37,180.0 20,769.0
Short−Term Debt 172,153.0 158,156.0 157,694.0 134,917.0 138,775.0
Other Current Liabilities 18,538.0 −− 17,539.0 −− 22,283.0
Total Current Liabilities 220,514.0 204,927.0 206,228.0 172,097.0 181,827.0
Long−Term Debt 260,804.0 212,281.0 212,670.0 195,725.0 140,632.0
Other Noncurrent Liabilities 103,607.0 146,762.0 220,788.0 200,481.0 189,079.0
Total Liabilities 584,925.0 563,970.0 639,686.0 568,303.0 511,538.0
Shareholder's Equity
Preferred Stock Equity −− −− −− −− −−
Common Stock Equity 112,314.0 109,351.0 110,821.0 79,180.0 63,706.0
Total Equity 112,314.0 109,351.0 110,821.0 79,180.0 63,706.0
Shares Outstanding (mil.) 10,277.4 10,484.3 10,586.4 10,063.1 9,969.9
Quarterly Balance Sheet
All amounts in millions of US Dollars unless otherwise noted.
AssetsQuarter Ending
Mar 07Quarter Ending
Dec 06Quarter Ending
Sep 06Quarter Ending
Jun 06
QuarterEndingMar 06
Current Assets
Cash 19,260.0 62,101.0 13,782.0 11,099.0 8,503.0
Net Receivables 28,189.0 13,954.0 12,535.0 12,043.0 12,558.0
Inventories 13,137.0 11,401.0 11,855.0 11,744.0 11,364.0
Other Current Assets −− −− −− −− −−
33
Total Current Assets 60,586.0 87,456.0 38,172.0 34,886.0 32,425.0
Net Fixed Assets 77,746.0 74,966.0 72,246.0 71,005.0 67,684.0
Other Noncurrent Assets 575,748.0 534,817.0 571,647.0 556,546.0 574,756.0
Total Assets 714,080.0 697,239.0 682,065.0 662,437.0 674,865.0
Liabilities andShareholder's Equity
Quarter EndingMar 07
Quarter EndingDec 06
Quarter EndingSep 06
Quarter EndingJun 06
QuarterEndingMar 06
Current Liabilities
Accounts Payable 25,755.0 29,823.0 23,813.0 24,154.0 23,527.0
Short−Term Debt 175,002.0 172,153.0 167,206.0 157,449.0 153,200.0
Other Current Liabilities 19,717.0 18,538.0 20,430.0 21,020.0 21,181.0
Total Current Liabilities 220,474.0 220,514.0 211,449.0 202,623.0 197,908.0
Long−Term Debt 275,071.0 260,804.0 242,927.0 236,935.0 222,970.0
Other NoncurrentLiabilities
104,366.0 103,607.0 116,307.0 114,087.0 146,462.0
Total Liabilities 599,911.0 584,925.0 570,683.0 553,645.0 567,340.0
Shareholder's Equity
Preferred Stock Equity −− −− −− −− −−
Common Stock Equity 114,169.0 112,314.0 111,382.0 108,792.0 107,525.0
Total Equity 114,169.0 112,314.0 111,382.0 108,792.0 107,525.0
Shares Outstanding (mil.) 10,288.2 10,277.4 10,308.1 10,323.4 10,398.4
34
Annual Cash Flow
All amounts in millions of US Dollars unless otherwise noted.
Dec 06 Dec 05 Dec 04 Dec 03 Dec 02
Net Operating Cash Flow 30,646.0 37,641.0 36,484.0 30,289.0 29,488.0
Net Investing Cash Flow (51,402.0) (35,049.0) (38,414.0) (22,903.0) (61,949.0)
Net Financing Cash Flow 23,230.0 (6,119.0) 4,594.0 (3,632.0) 32,938.0
Net Change in Cash 2,474.0 (3,527.0) 2,664.0 3,754.0 477.0
Depreciation & Amortization 9,158.0 8,538.0 8,385.0 6,956.0 5,998.0
Capital Expenditures (16,650.0) (14,441.0) (13,118.0) (9,767.0) (13,351.0)
Cash Dividends Paid (10,420.0) (9,352.0) (8,278.0) (7,643.0) (7,157.0)
Quarterly Cash Flow
All amounts in millions of US Dollars unless otherwise noted.
Quarter EndingMar 07
Quarter EndingDec 06
Quarter EndingSep 06
Quarter EndingJun 06
QuarterEndingMar 06
Net Operating CashFlow
4,942.0 8,951.0 9,491.0 6,695.0 5,509.0
Net Investing CashFlow
(7,175.0) (16,508.0) (15,476.0) (13,055.0) (6,363.0)
Net Financing CashFlow
7,218.0 7,864.0 8,701.0 5,491.0 1,174.0
Net Change in Cash 4,985.0 307.0 2,716.0 (869.0) 320.0
Depreciation &Amortization
2,585.0 2,486.0 2,294.0 2,246.0 2,132.0
Capital Expenditures (4,905.0) (5,605.0) (3,661.0) (4,400.0) (2,984.0)
Cash Dividends Paid (2,886.0) (2,589.0) (2,584.0) (2,616.0) (2,631.0)
35
Historical Financials
Income Statement
YearRevenue($ mil.)
Net Income($ mil.)
Net ProfitMargin
Employees
Dec 2006 163,391.0 20,829.0 12.7% −−
Dec 2005 150,242.0 16,711.0 11.1% 316,000
Dec 2004 152,866.0 16,819.0 11.0% 307,000
Dec 2003 134,187.0 15,002.0 11.2% 305,000
Dec 2002 131,698.0 14,118.0 10.7% 315,000
Dec 2001 125,913.0 13,684.0 10.9% 310,000
Dec 2000 129,853.0 12,735.0 9.8% 313,000
Dec 1999 111,630.0 10,717.0 9.6% 340,000
2006 Year−End Financials
Debt Ratio 232.2%
Return on Equity 18.5%
Cash ($ mil.) 62,101.0
Current Ratio 0.40
Long−Term Debt ($ mil.) 260,804.0
Shares Outstanding (mil.) 10,277.4
Dividend Yield 2.8%
Dividend Payout −−
Market Cap ($ mil.) 382,421.0
Stock History
YearStock Price ($) P/E Per Share ($)
FYHigh
FYLow
FYClose
High Low Earns. Div.BookValue
Dec 2006 38.49 32.06 37.21 19 16 2.01 1.03 10.93
Dec 2005 37.34 32.67 35.05 24 21 1.57 0.91 10.43
Dec 2004 37.75 28.88 36.50 24 18 1.60 0.82 10.47
Dec 2003 32.42 21.30 30.98 22 14 1.49 0.77 7.87
Dec 2002 41.84 21.40 24.35 30 15 1.41 0.73 6.39
Dec 2001 53.55 28.50 40.08 39 21 1.38 0.66 5.52
Data Definitions
36
Market Data
Current Information
Last Close (11−May−2007) $36.97 Price/Sales Ratio 2.30
52−Week High $38.49 Price/Book Ratio 3.33
52−Week Low $32.06 Price/Earnings Ratio 18.39
60−Month Beta 0.7 Price/Cash Flow Ratio 12.64
Market Cap (mil.) $380,353.2Return on Assets 3.0%
Shares Outstanding (mil.) 10,288.2 Return on Equity 18.9%
Dividend Rate 1.06 Current Ratio 0.28
Dividend Yield 106.0% Long−Term Debt/Equity 3.94
# of Institutional Holders 1,686 % Owned by Institutions 62.0%
Latest Short Interest Ratio 1.31 Latest Net Insider Transactions 5,644.00
Growth Rates 12 Month 36 Month 60 Month
Revenue Growth 11.5% 20.7% 31.5%
EPS Growth 22.6% 32.2% 42.6%
Dividend Growth 12.8% 35.9% 55.9%
Data Definitions
37
Comparison Data
Profitability Company Industry 1 Market 2
Gross Profit Margin 55.70% 33.60% 51.60%
Pre−Tax Profit Margin 15.00% 1.70% 6.40%
Net Profit Margin 12.60% 1.70% 5.10%
Return on Equity 18.9% 5.8% 9.6%
Return on Assets 3.0% 1.8% 1.5%
Return on Invested Capital 3.2% 3.3% 4.2%
Valuation Company Industry 1 Market 2
Price/Sales Ratio 2.30 1.82 2.29
Price/Earnings Ratio 18.39 23.45 19.35
Price/Book Ratio 3.33 2.31 2.23
Price/Cash Flow Ratio 12.64 17.07 13.60
Operations Company Industry 1 Market 2
Days of Sales Outstanding 62.15 64.62 57.46
Inventory Turnover 6.0 4.6 5.8
Days Cost of Goods Sold in Inventory 61 79 63
Asset Turnover 0.2 0.8 0.6
Net Receivables Turnover Flow 8.1 5.9 6.5
Effective Tax Rate 15.5% 13.7% 29.4%
Financial Company Industry 1 Market 2
Current Ratio 0.28 2.61 1.68
Quick Ratio 0.2 1.8 1.2
Leverage Ratio 0.63 0.20 0.24
Total Debt/Equity 3.94 0.32 0.62
Interest Coverage 2.20 13.54 5.30
Per Share Data ($) Company Industry 1 Market 2
Revenue Per Share 16.09 4.04 5.54
Fully Diluted Earnings Per Sharefrom Total Operations
−− −− −−
Dividends Per Share 1.06 0.38 0.65
Cash Flow Per Share 2.92 0.13 0.45
Working Capital Per Share (15.54) 1.90 0.58
Long−Term Debt Per Share 26.74 0.52 2.54
38
Book Value Per Share 11.10 3.07 5.04
Total Assets Per Share 69.41 4.89 10.44
Growth Company Industry 1 Market 2
12−Month Revenue Growth 11.5% 12.6% 12.6%
12−Month Net Income Growth 21.6% 22.8% 15.7%
12−Month EPS Growth 22.6% 19.9% 11.4%
12−Month Dividend Growth 12.8% 0.0% 0.0%
36−Month Revenue Growth 20.7% 42.9% 38.5%
36−Month Net Income Growth 37.1% 98.7% 48.6%
36−Month EPS Growth 32.2% 91.6% 43.4%
36−Month Dividend Growth 35.9% 0.0% 0.0%2 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.
Data Definitions
39
Competitive Landscape
KEY: Best of Group. Companies listed are Top Competitors.
Key Numbers GE CitigroupPhilips
ElectronicsSiemens AG
Annual Sales ($ mil.) 163,391.0 146,558.0 35,616.4 110,798.0 −− −−
Employees −− −− −− 475,000 −− −−
Market Cap ($ mil.) 380,353.2 262,705.4 −− −− −− −−
Profitability GE CitigroupPhilips
ElectronicsSiemens AG Industry 2 Market 3
Gross Profit Margin 55.70% 102.90% 30.70% 26.90% 33.60% 51.60%
Pre−Tax Profit Margin 15.00% 18.90% 4.50% 5.00% 1.70% 6.40%
Net Profit Margin 12.60% 13.50% 20.00% 3.50% 1.70% 5.10%
Return on Equity 18.9% 17.7% 28.4% 11.0% 5.8% 9.6%
Return on Assets 3.0% 1.2% 15.6% 3.5% 1.8% 1.5%
Return on Invested Capital 3.2% 0.0% 20.6% 5.9% 3.3% 4.2%
Valuation GE CitigroupPhilips
ElectronicsSiemens AG Industry 2 Market 3
Price/Sales Ratio 2.30 1.69 1.30 0.96 1.82 2.29
Price/Earnings Ratio 18.39 12.44 6.72 27.44 23.45 19.35
Price/Book Ratio 3.33 2.15 1.53 2.85 2.31 2.23
Price/Cash Flow Ratio 12.64 −− 41.20 16.77 17.07 13.60
Operations GE CitigroupPhilips
ElectronicsSiemens AG Industry 2 Market 3
Days of Sales Outstanding 62.15 122.17 71.46 77.36 64.62 57.46
Inventory Turnover 6.0 −− 6.2 3.9 4.6 5.8
Days Cost of Goods Sold inInventory
61 −− 59 93 79 63
Asset Turnover 0.2 0.1 0.8 1.0 0.8 0.6
Net Receivables Turnover Flow 8.1 3.3 5.5 4.8 5.9 6.5
Effective Tax Rate 15.5% 28.7% 11.3% 24.7% 13.7% 29.4%
Financial GE CitigroupPhilips
ElectronicsSiemens AG Industry 2 Market 3
Current Ratio 0.28 −− 1.64 1.32 2.61 1.68
Quick Ratio 0.2 −− 1.3 0.8 1.8 1.2
Leverage Ratio 0.63 0.40 0.10 0.17 0.20 0.24
40
Total Debt/Equity 3.94 6.68 0.17 0.53 0.32 0.62
Interest Coverage 2.20 1.44 4.59 113.08 13.54 5.30
Per Share Data ($) GE CitigroupPhilips
ElectronicsSiemens AG Industry 2 Market 3
Revenue Per Share 16.09 31.39 31.16 123.66 4.04 5.54
Fully Diluted Earnings Per Sharefrom Total Operations
−− −− −− −− −− −−
Dividends Per Share 1.06 2.06 0.68 1.47 0.38 0.65
Cash Flow Per Share 2.92 (4.36) 0.99 7.05 0.13 0.45
Working Capital Per Share (15.54) −− 6.74 17.92 1.90 0.58
Long−Term Debt Per Share 26.74 62.83 3.47 18.97 0.52 2.54
Book Value Per Share 11.10 24.68 26.57 41.50 3.07 5.04
Total Assets Per Share 69.41 408.57 44.48 128.82 4.89 10.44
Growth GE CitigroupPhilips
ElectronicsSiemens AG Industry 2 Market 3
12−Month Revenue Growth 11.5% 23.6% (1.1%) 21.9% 12.6% 12.6%
12−Month Net Income Growth 21.6% (15.6%) 109.2% 42.1% 22.8% 15.7%
12−Month EPS Growth 22.6% (13.2%) 123.2% 41.8% 19.9% 11.4%
12−Month Dividend Growth 12.8% 10.8% 26.1% 13.9% 0.0% 0.0%
36−Month Revenue Growth 20.7% 59.3% (2.3%) 28.7% 42.9% 38.5%
36−Month Net Income Growth 37.1% 9.9% 714.4% 35.7% 98.7% 48.6%
36−Month EPS Growth 32.2% 14.8% 0.0% 0.0% 91.6% 43.4%
36−Month Dividend Growth 35.9% 37.3% 82.1% 35.1% 0.0% 0.0%
1 Data unavailable.
Data Definitions
41