General Electric (GE) 2008年年度報告「NYSE」.pdf

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1、2008 Annual ReportWe are GEInfrastructureFinanceMediaCONTENTS 1 Letter to Investors 9 Business Overview 14 Governance 16 Board of Directors 17 Financial Section 108 Corporate Information2008 Summary Earnings were$18.1 billion,the third highest in Company history Revenues grew 6%to a Company record o

2、f$183 billion Global revenues grew 13%Infrastructure and Media segments grew operating profi t 10%Total equipment and services backlog grew to$172 billion,an increase of 9%Services grew 10%with a backlog of$121 billion Industrial organic revenues grew 8%Invested$15 billion in the intellectual founda

3、tion of the Company,including products,training,marketing,and programming Filed 2,537 patent applications in 2008,an increase of 8%Named 4th most valuable brand in the world by BusinessWeek Note:Financial results from continuing operations unless otherwise noted2008 COMPANY HIGHLIGHTS172152136124183

4、20042005200620072008CONSOLIDATED REVENUES(In$billions)5-year average growth rate of 12%22.519.317.315.618.120042005200620072008EARNINGS FROM CONTINUING OPERATIONS(In$billions)Earnings Growth Rates 2004 2005 2006 2007 2008GE 18%11%12%16%(19%)S&P 500 25%10%14%(7%)(30%)5-year average growth rate of 7%p

5、ictured left to right(*seated)Jeffrey R.Immelt,Chairman of the Board&Chief Executive OfficerMichael A.Neal,*Vice Chairman,GE and Chairman&Chief Executive Officer,GE CapitalKeith S.Sherin,Vice Chairman,GE and Chief Financial Officer John G.Rice,*Vice Chairman,GE and President&Chief Executive Officer,

6、Technology InfrastructureJohn Krenicki Jr.,Vice Chairman,GE and President&Chief Executive Officer,Energy InfrastructureDear Fellow Owners,2008 was a tough year,and we expect 2009 to be even tougher.The liquidity challenge I reported in last years letter has become a global financial meltdown.In 2008

7、,we worked hard to keep the Company safe and to anticipate how the financial crisis would impact our businesses.In the past,I believed that our diversified portfolio would protect us in all kinds of economic cycles.But we never anticipated a global financial system failure and its continuing economi

8、c fallout.208941_anderson-narrative.indd 12/23/09 5:01 PMThe macro-environment has been brutal.The losses in the whole financial services industry are projected to be at least$2 trillion.The lending capacity that has come out of the system is somewhere between$5 trillion and$10 trillion.We have now

9、entered an economic recession across most of the world.Government actions have helped to stabilize the environment.Capital markets have improved,largely due to aggressive actions by the U.S.Federal Reserve,U.S.Federal Deposit Insurance Corporation,U.S.Department of the Treasury,and global government

10、s.In addition,stimulus programs being implemented around the world will provide trillions in new investments.In this very tough environment,GE earned$18 billion,our third highest year in history.Thanks to the extensive repositioning of our portfolio over the past eight years,we redeployed our capita

11、l to enable growth.Our operating cash flow for the year remained strong at over$19 billion.We have a$172 billion backlog in infrastructure products and services.We have geographic diversity,with 53%of our revenues outside the U.S.We also have a great pipeline of new products.The credit for this perf

12、ormance in the toughest times Ive ever seen goes to the people of GE.The efforts of more than 300,000 skilled GE workers,technicians,credit analysts,technologists,engineers,service providers,our experienced management team,and all employees helped us end 2008 with solid profitability and prepare our

13、 Company for future growth.Despite our efforts,the GE stock got hammered.Companies with a presence in financial services,like GE,are simply out of favor.I can tell you that no one is more disappointed than I am with the performance of our stock in this tough environment.I assure you that we will wor

14、k hard to restore your trust,and we will continue to work hard to build GE for the long term.We are in a recession and,at times like these,it is difficult to predict how bad and for how long.We are running GE to“weather the cycle.”However,I believe we are going through more than a cycle.The global e

15、conomy,and capitalism,will be“reset”in several important ways.The interaction between government and business will change forever.In a reset economy,the government will be a regulator;and also an industry policy champion,a financier,and a key partner.The financial industry will radically restructure

16、.There will be less leverage,fewer competitors,and a fundamental repricing of risk.It will remain an important industry,just different.There are other resets as well:the diminished role of the automotive industry;a prolonged downturn in housing;a decline in the prominence of alternative investments;

17、and the nature of executive responsibility and compensation.You get the point.Successful companies wont just“hunker down”;they will seek out the new opportunities in a reset world.In that context,we have taken strong actions to protect the Company during this recessionary cycle.At the same time,we w

18、ill continue to execute our long-term strategy.We will continue to build strong businesses that will perform over the long term.And we will drive the common initiatives that build competitive advantage.“In this very tough environment,GE earned$18 billion,our third highest year in history We have a$1

19、72 billion backlog in infrastructure products and services We also have a great pipeline of new products.”2 ge 2008 annual reportPrepared for Tough TimesWe have prepared for a difficult economy in 2009.To that end,we have lowered costs,increased loss reserves,improved our cash position,and intensifi

20、ed our management processes.We made some tough calls as we navigated this environment.We raised$15 billion of equity at a time when liquidity was virtually frozen.We have gained access to government funding programs that put us on equal footing with banks.We have improved our funding.We have already

21、 raised about two-thirds of the debt required to grow our businesses in 2009.We have increased our alternative funding to$54 billion,mainly through our banks.We have improved our liquidity.We reduced commercial paper from$100 billion last year to$60 billion today.We ended 2008 with$48 billion of cas

22、h on our balance sheet.We are targeting our leverage in GE Capital to be 6:1 in 2009.We are prepared for a very rough economy and have been realistic about our loss estimates.We benefit from having less consumer exposure than banks and our commercial loans are senior and secured.We are prepared to h

23、old and operate our assets through the cycle to maximize value.We have taken aggressive action to reduce costs by$5 billion.Our base cost will be down 7%next year,driven by headcount reduction and spending cuts.We have simplified organizations and reduced layers.Well reduce variable costs,including$

24、2 billion of sourcing on direct material purchases.We expect our indirect costs to be down close to 10%.Our industrial businesses generate about$16 billion of cash annually,even in an economic downturn.We are aiming to reduce working capital by about$5 billion over the next two years.This gives us p

25、lenty of cash to reinvest in growth,support a strong dividend,or strengthen our balance sheet.But,our top priority for capital allocation at the present time must be safety.To that end,we will continue to run the Company with the disciplines of a“Triple A,”including adequate capital,low leverage,sol

26、id earnings,and conservative funding.We have built a foundation that can weather this economic storm.But to emerge from this cycle as a more valuable company requires an unflinching commitment to execute our long-term strategy:building strong businesses and sustaining competitive advantage.Building

27、Strong BusinessesOver time,we have been able to transform the GE portfolio to meet new opportunities.That remains true today.The chart on this page shows GEs cumulative net earnings over the past four decades:1970s:$8 billion;1980s:$24 billion;1990s:$65 billion;2000s:approaching$170 billion.We have

28、performed through economic cycles.Last year,we simplified our operating framework to focus on four main businesses:technology and energy infrastructure,finance,and media.In 2008,our earnings declined 19%,while the S&P 500s earnings declined 30%.This is not the type of“outperformance”we like,but we w

29、ere better than the broad market.Over time,and in an improved economy,we expect our businesses will continue to grow faster than the S&P 500.We have three priorities for 2009:expand leadership in infrastructure and media;capitalize on GEs cyclical advantages;and create a more focused GE Capital Fina

30、nce.GE DELIVERS1970s1980s1990s2000s296510244890+170(In$billions)A.DividendB.GE earningsge 2008 annual report 3Expand Leadership in Infrastructure and MediaWe have built leadership in infrastructure and media,growing these businesses to about$100 billion in revenues with margins of 17%.They require o

31、nly$2 billion of annual investments to drive long-term growth.These businesses grew 10%in 2008 and we expect them to grow even in a difficult 2009.TECHNOLOGY INFRASTRUCTURE earned about$8 billion in 2008 and under our framework we are planning for positive earnings growth in 2009.Margins continue to

32、 be solid and we expect them to expand in 2009.But well face some headwinds,too.We expect some aircraft engine order cancellations and Healthcares diagnostic imaging business could have a very tough year in the U.S.We are planning for both of these events,which are balanced against strong service re

33、venue growth and cost reductions.John Rice and his team have done a good job in building a strong set of leadership businesses that can grow through this cycle.ENERGY INFRASTRUCTURE earned about$6 billion in 2008 and we expect earnings and margin growth in 2009.The decline in the price of oil is a n

34、egative,but we believe that as costs go down for steel and other raw materials,some projects may in fact accelerate.Long term,growth remains robust;electricity demand should double in the next 25 years.We have a substantial advantage in a“clean energy world”thanks to our ecomaginationSM initiative.W

35、e sold$17 billion in ecomagination products in 2008 and we are on track for sustained growth.John Krenicki and his team have positioned GE to win in the global energy market.NBC UNIVERSAL earned about$3 billion last year.Its likely to be down in 2009,as we expect the network environment to be partic

36、ularly tough.But cable,more than 60%of our earnings,is going to continue to be a source of strength,building on its ratings success in 2008.Our movie business has already invested in new films for next year,which will also support DVD sales.Our strengths are good content,a strong cable focus,and int

37、ernational distribution.Jeff Zucker and his team have done a great job in repositioning NBC Universal to win in the rapidly changing media landscape.Capitalize on GEs Cyclical AdvantagesGEs infrastructure businesses have cyclical demand tailwinds in 2009.One driver is services.About two-thirds of ou

38、r earnings come from services.We have a large installed base of proprietary technology that has created a$121 billion backlog in services.We will have about$40 billion in service revenues in 2009,growing approximately 10%at attractive margins.Service is more robust in a downturn because it creates v

39、alue for our customers.Service value for our customers comes from two streams:customer efficiency through system performance and energy savings;and customer productivity through process improvements and data management.Aviation is an example of a business that can grow earnings even if the market fo

40、r new aircraft declines.We have$90 billion of potential long-term aviation service revenues just on the engines we have shipped in the last three years.Our shop visits should grow 20%in 2009,as 40%of our engines have not had their first overhaul.Our key customers,like Southwest Airlines,appreciate o

41、ur services because they get predictable maintenance costs,improved reliability,and increased engine residual value.Another driver is the impact government stimulus will have on infrastructure investment.GEs broad technical portfolio positions us as a natural partner as the role of government increa

42、ses in the current crisis.Over the past decade,we have positioned GE to lead in the“big themes.”These include emerging market growth,clean energy,and sustainable healthcare.Global investments in infrastructure were expected to be$7 trillion before the crisis.These investments make populations more p

43、roductive,provide basic needs,and importantly,create jobs.Now there will be an additional$3 trillion in government stimulus directed towards infrastructure investments.4 ge 2008 annual reportIn the U.S.,stimulus will target clean energy and smart grid technology.GE is well positioned to capitalize o

44、n these investments.We have a$7 billion renewable energy business with solid positions in wind and solar energy.We are deploying smart grid technology with key utility customers such as Pacific Gas and Electric Company,American Electric Power,and Florida Power&Lighting.This is an approximately$635 m

45、illion business today,but will grow substantially in the next few years.Similarly,we have built a$2 billion business in Healthcare Information Technology,where we are working with key customers to improve the quality of patient care at a lower cost.For instance,we are collaborating with industry tho

46、ught leaders,including Intermountain Healthcare,to develop an electronic health record.We have invested jointly,co-located our teams,and set common processes and standards.There are also ongoing studies in healthcare information technology with Mayo Clinic and the University of California-San Franci

47、sco Medical Center.We will help lead the healthcare industry in transforming information management with a technology foundation.Outside the U.S.,government investments will target more basic infrastructure.In Iraq,we entered a$3 billion turbine agreement to meet the critical need to re-electrify th

48、is country.We will deliver the most flexible technology for the best value.In India and South Africa,we are pursuing$5 billion of locomotive orders.These projects are essential to meeting national energy efficiency,transportation,and environmental goals.In China,we are partnering with Commercial Air

49、craft Corporation of China,LTD(COMAC),as they develop an in-country commercial aviation industry.This is expected to generate multiple new business opportunities for GE.In Russia and Qatar,we are partnering with governments to improve healthcare,representing$1 billion of potential growth.Governments

50、 will invest to stimulate their economies,solve societal problems,and create jobs.GEs broad portfolio and expertise position us as a natural partner.Tackling important problems together will require teamwork and respect between business,government,and society.We know how to do this and intend to pla

51、y an important part in solving these essential challenges.Create a More Focused GE Capital FinanceMike Neals GE Capital Finance business earned nearly$9 billion in 2008.Against the background of the global credit crisis,his team moved quickly to improve our liquidity,strengthen our capital base,redu

52、ce our cost structure,and control our losses.In the past,investors asked me what was our target percentage for earnings contribution from financial services and I said below 50%.Going forward we expect 30%of our earnings to come from financial services.I never envisioned getting to our target in thi

53、s fashion,but nevertheless we now have a more heavily weighted industrial portfolio.Did we end up with too much exposure in certain areas during the credit bubble?Maybe,a few.Today,I wish we had less exposure to commercial real estate and U.K.mortgages.However,while trillions of dollars of value hav

54、e been lost at many financial institutions by investing in structured investment vehicles(SIVs),collateralized debt obligations(CDOs),and credit default swaps(CDSs),our risk discipline kept us out of these markets.Moreover,our decision to exit$150 billion of insurance assets earlier this decade prot

55、ected us from even greater volatility.“Service is more robust in a downturn because it creates value for our customers.Service value for our customers comes from two streams:customer efficiency through system performance and energy savings;and customer productivity through process improvement and da

56、ta management.”ge 2008 annual report 5We remain a great source of liquidity to companies,consumers,and projects.We provided$48 billion of new loans in fourth quarter 2008 and plan for about$180 billion in 2009.We are a leader in mid market commercial lending around the world.We continue to support m

57、any customers in infrastructure industries like aviation,healthcare,transportation,and energy.We intend to stay anchored in what we know,own,and manage.We underwrite all loans and leases to our standards and typically,as senior lenders,we are secured in collateral.In addition,we are prepared to hold

58、 these assets through the cycle.At the same time,we are repositioning our fi nancial services business to operate as a more focused and smaller fi nance segment.We continue to have a set of strong businesses in core lending to mid market customers,who benefi t from our expertise in energy,aviation,a

59、nd healthcare;in global consumer lending,including our banking and joint ventures;and in real estate.We will be taking a close look at nonstrategic assets in these businesses,such as equipment services businesses,most of our consumer mortgage books,and a dozen or so small or subscale commercial and

60、consumer platforms that we will reduce over the next few years.These moves will allow us to focus on our core operations and our ability to self-fund by growing our deposit base.We are targeting our returns in fi nancial services to be about 15%.We remain convinced that we have an effective fi nanci

61、al services business model.We have over 10,000 global originators who understand their customers better than banks because of GEs industrial presence.We believe that our fi nancial services can drive earnings growth over the long term.Sustaining Competitive AdvantageGE is a 130-year-old growth compa

62、ny.By my count,we have survived nine recessions and one depression.What drives our results through the cycles is our ability to perform and change.We will continue to invest in initiatives that will give GE a solid competitive advantage over the long term.BE GLOBAL.Our non-U.S.revenues have averaged

63、 13%annual growth this decade.We expect our global growth to outpace the U.S.in 2009.This is a source of competitive advantage for GE.We are perfecting an approach called“connected and scalable localization”whereby we accelerate growth by expanding our local product lines,serving new customers,and c

64、reating strong partnerships with local champions.GE has 25 countries each with more than$1 billion in revenues,so empowering our local teams is critical to driving growth.Global diversity is important in this cycle because it diversifi es revenues and risk.We expect Healthcares diagnostic imaging bu

65、siness to suffer in the U.S.as our customers grapple with budget cuts.However,we have a$9 billion global healthcare business that we expect to experience strong demographic growth,offsetting weakness in the U.S.Drive InnovationLead with technology and content innovationLeverage StrengthsUse GEs size

66、,expertise,fi nancial capability,and brandBuild RelationshipsGrow customer and partner relationships worldwide Be GlobalConnect locally,scale globallyOUR STRATEGYOur strategy borrows our key strengths from the past and makes them relevant to a new era of global business:6 ge 2008 annual reportDRIVE

67、INNOVATION.We will invest$10 billion in technology and content in 2009,the same level as 2008.Since 2000,we have invested approximately$50 billion in product technology.Well launch economical“value products”in 2009 such as the 2.6-megawatt wind turbine,which has high efficiency,more capacity,and low

68、er cost.Well continue to build our innovation pipeline.We launched a venture in digital pathology,which we think will be a$2 billion market over time.We launched hulu,a joint venture between NBC Universal and News Corp.,which is an innovative digital content platform competing with YouTube.We have i

69、nvested$150 million in battery technology that will power our hybrid locomotives.We will continue to fund innovation through the downturn.BUILD RELATIONSHIPS.GE has many ventures and partnerships that help us grow and diversify risk on a global basis.Our multi-business structure makes us a particula

70、rly desirable partner for governments and other large investors.A great example is our spectacular success with the Beijing 2008 Olympic Games.This event produced$2 billion of revenues across multiple GE platforms,while building our relationships in China.In 2008,we announced a multifaceted partners

71、hip with Mubadala,the commercial investing arm of Abu Dhabi,which includes a commercial finance joint venture,projects in renewable energy,and a training center in Abu Dhabi.Mubadala will also become a“Top 10”GE investor.LEVERAGE STRENGTHS.We have core processes centered on organic growth,operating

72、excellence,and leadership development.The aim of these processes is to spread best practices across the Company.We compare our progress on common metrics in industrial organic revenue growth,margins,return on total capital,and productivity as measured by revenue per employee.The chart on this page s

73、hows how we compare with a composite of world-class peers.We continue to perform.In addition,we continue to invest$1 billion annually in our people and leadership development.We value our team.We remain committed to developing broad and “battle-tested”global leaders.Opportunity to ResetLets face it:

74、our Companys reputation was tarnished because we werent the“safe and reliable”growth company that is our aspiration.I accept responsibility for this.But,I think this environment presents an opportunity of a lifetime.We get a chance to reset the core of GE and focus on what we do best.We can reset ex

75、pectations for our performance.And we can participate in the changes required in the broader economy.Peers include:Whirlpool,Disney,News Corp.,United Technologies,Honeywell,Siemens,Philips,ABB,Rolls Royce,Alstom2008 INDUSTRIALORGANIC REVENUEGROWTHGEPeers48(In%)2008 MARGINSGEPeers14.615.6(In%)2008 RE

76、VENUEPER EMPLOYEEGEPeers294566(In$thousands)2008 RETURN ONTOTAL CAPITALGEPeers12.114.8(In%)ge 2008 annual report 7GE has enormous and enduring strengths that are underestimated right now.We have leadership businesses and a dedicated team.We have outperformed the S&P 500 in earnings over the long ter

77、m,including 2008.One important reset is in financial services.Earlier this decade,our financial services earnings received a valuation similar to our industrial earnings;today,it is lower.In the end,having financial services as 50%of our earnings was too high.We intend to reset this business to be s

78、maller,less volatile and more connected to the“GE core.”In addition,we determined that this was a good time to rethink how we communicate about the Company and to provide only an annual framework on our operations,instead of detailed quarterly guidance.Weve always tried to be transparent,to offer a

79、lot of detail and data,and describe the Company externally the way we run the Company internally,and we will continue to do so.As a long-cycle business,we want our investors to focus on long-term results.For 2009,we have sharpened our strategic processes and scenario planning.We have increased the f

80、requency and changed the agendas of our operating meetings.Each of our businesses has set up a process to identify the“naysayers”in each of our industries to make sure their voices are heard inside GE.From top to bottom and across GE,we must and will listen more critically and respectfully to each o

81、ther.I have also learned something about my country.I run a global company,but I am a citizen of the U.S.I believe that a popular,thirty-year notion that the U.S.can evolve from being a technology and manufacturing leader to a service leader is just wrong.In the end,this philosophy transformed the f

82、inancial services industry from one that supported commerce to a complex trading market that operated outside the economy.Real engineering was traded for financial engineering.In the end,our businesses,our government,and many local leaders lost sight of what makes a nation great:a passion for innova

83、tion.To this end,we need an educational system that inspires hard work,discipline,and creative thinking.The ability to innovate must be valued again.We must discover new technologies and develop a productive manufacturing base.Our trade deficit is a sign of real weakness and we must reduce our debt

84、to the world.GE will always invest to win globally,but this should include a preeminent position in a strong U.S.GE plans to play an important role in this process.We are,first and foremost,a technology company.And we will continue to invest increasing amounts in R&D to develop innovative solutions

85、for our customers.In addition,we will continue investing to improve the education system,around the world,to produce more competitive students.People come to GE because they understand there is more to life than making a buck.People come here because they want to make a difference,and never has this

86、 been more important than it is right now.The current crisis offers the challenge of our lifetime.Ive told our leaders at GE that if they are frightened by this concept,they shouldnt be here.But if theyre energized,and desire to play a part in transforming the Company for the future,then this is goi

87、ng to be a thrilling time to be a part of GE.GE will be a better company winning through this crisis.Your GE teams have dug in and are dedicated to the tasks ahead.My thanks go out to all investors who continue to support our efforts.If you are a prospective investor,let me say,now is the time to in

88、vest in GE!Jeffrey R.ImmeltChairman of the Boardand Chief Executive OfficerFebruary 6,20098 ge 2008 annual reportIn a challenging environment,GE businessesare poised to perform with rigor and tocapture new growth.Technology Infrastructure,Energy Infrastructure,GE Capital,andNBC Universal will contin

89、ue to work withcustomers to meet their most urgent needsand take on the worlds toughest challenges.GEs ability to be global,drive innovation,buildrelationships,and leverage our strengths willhelp us to meet the unique challenges of ourtimes as we build the future together.Shanghai,ChinaAir travel is

90、 booming business in China,as an estimated 50 new airports will be built in the next five years.At a COMAC facility in China (main photo),workers prepare a GE CF34-10A engine to be installed on an ARJ21 aircraft.Taking relationships to new heights.Technology InfrastructureWhen Chinas first domestica

91、lly developed regional jet took flight in 2008,two GE CF34-10A engines provided the propulsion.The ARJ21 regional jet is the result of close collaboration between our Technology Infrastructures Aviation business,other leading aerospace companies,and the state-owned Commercial Aircraft Corporation of

92、 China,LTD(COMAC).It represents a$6 billion opportunity for GE Aviation.More importantly,from R&D at our Global Research Center in Shanghai to GE Commercial Aviation Services purchase of five with the option for 20 additional ARJ21 aircraft,this endeavor demonstrates GEs ability to truly partner wit

93、h a country for mutually beneficial growth.As Chinas second-and third-tier cities undergo rapid expansion in the years to come,our businesses will be positioned to help fill insatiable demand for power generation,healthcare,transportation,and financing in a way no other company can.Greenville,South

94、CarolinaA technology team performs a test by taking a direct view from inside an F-Class turbine.An F-Class turbine(main photo)is hoisted to a test platform;it will soon join more than 6,000 GE gas turbines installed worldwide.Powering up production.Energy InfrastructureSome of GE Energy Infrastruct

95、ures biggest global growth drivers are built right here at home.GEs Greenville,South Carolina site is the largest gas turbine manufacturing plant in the world,producing products for domestic and global export.Built in 1968,the site originally housed 250 employees and focused on building the Frame 7

96、gas turbine.Today,the site manufactures a diverse range of energy and infrastructure products,and has grown into an integrated campus spanning 413 acres with over 3,000 employees,two engineering centers,a Gas Turbine Center of Excellence,and a Repair Development Center.GE Energys innovative solution

97、s,such as fuel flexibility for turbines,have been critical in winning major deals,including the$3 billion agreement signed between GE Energy and the government of Iraq,the largest single win in the history of GE Energy.Positioning through partnerships.GE Capital FinanceAs GE Capital Finance moves to

98、ward a smaller and more focused structure,strategic partnerships and joint ventures will play a greater role in helping GE capitalize on market-specific opportunities.GEs multifaceted partnership with Mubadala Development Company in Abu Dhabi,United Arab Emirates,is a powerful example of how this ne

99、w approach will strengthen our position.Building on a strong existing relationship,GE and Mubadala will create a jointly owned global financial services business combining Mubadalas expertise in regional investment opportunities with GEs global origination excellence.GE Capital Finance and Mubadala

100、will each commit$4 billion in equity to the venture with targeted assets in excess of$40 billion.The partnership also provides new higher-return investment opportunities in infrastructure investment,clean energy and water R&D,aviation,energy support,and our first ever corporate learning program in t

101、he Middle East and Africa.Abu Dhabi,United Arab EmiratesOn the construction site for Masdar City,the worlds first carbon-neutral,zero-waste city powered by renewable energy,where GEs first ecomagination center is to be built.GE and Mubadala(main photo)discuss high growth opportunities in Abu Dhabi.L

102、os Angeles,CaliforniaIn the kitchen at Bravos new show Top ChefMasters(main photo),a spin-off of Bravos hit show Top Chef,the highest-rated food show on cable.On the set of Monk,USA Networks standout hit.Delivering through diversification.NBC UniversalRealizing that the best way to grow its business

103、 amid shifting media consumption habits was to adjust its model,the team at NBC Universal launched a significant transformation effort.By implementing a diversification strategy that includes aggressive cable acquisition,global expansion,investment in film,and the development of innovative digital d

104、istribution,NBC Universal now has multiple ways to grow.NBC Universals cable business,in particular,is driving fast growth,accounting for more than 60%of total earnings in 2008.And Universal Pictures had its best year ever at the box office with hits such as Mamma Mia!and Wanted.To Our Shareowners:T

105、he Management Development and Compensation Committee of GEs Board of Directors is responsible for designing and implementing compensation programs that reward executives for leadership excellence and sustained financial and operating performance,align their interests with those of our shareowners,an

106、d encourage them to remain at GE for long,productive careers.As Chairman of this Committee,I would like to share my perspective on how GE works to ensure that its executive compensation program properly measures and rewards the preservation of value in this time of economic stress.Measuring Success

107、in Severe Economic ConditionsAt GE,we believe in developing and retaining market-tested leaders with the skills and experience needed to perform in a broad range of economic conditions.We invest substantial time and resources in training at all levels of the Company.We see the greatest return on thi

108、s investment in tough economic times like these.We have a core team of leaders that is prepared to handle the difficult conditions we face and to protect and grow shareowner value over the long term.A guiding principle of our compensation program is to ensure that we have in place the right metrics

109、and incentives,applied over the appropriate performance periods.We reward consistent performance and discourage short-term-oriented behavior that may yield a single period of good results without regard for proper risk management or the long-term health of the business.The Committee uses a mix of co

110、mpensation that balances rewards for current and long-term performance.Performance metrics include growth in earnings per share,revenue,and cash flow.We believe this is the best way to stimulate innovation and ensure solid execution,while guaranteeing that risks are recognized and managed appropriat

111、ely over the long term.Although we fine-tune our compensation programs as conditions change,we believe it is important to maintain consistency in our compensation philosophy and approach.We recognize that value-creating performance by an executive or group of executives does not always translate imm

112、ediately into appreciation in GEs stock price,particularly in periods of severe economic stress.However,we will continue to reward such performance based on our firm belief that,over time,true value creation does translate into stock price appreciation.Rewarding Effective Risk ManagementA root cause

113、 of the global economic crisis was the failure of many executives and businesses to understand and adequately manage and price risk.At GE,we have strategies and management processes that effectively manage risk and maximize opportunities across our businesses.Our process includes long-term strategic

114、 planning,executive development and evaluation,regulatory and litigation compliance reviews,environmental compliance reviews,GE Capitals corporate risk function,and GEs senior level Corporate Risk Committee.When the current financial crisis recedes,we expect that managing risk will be even more impo

115、rtant to competitive advantage and long-term success.Our executive compensation program is designed to reward those executives who demonstrate an ability to assess and manage risk effectively.Over the past year,our leaders have demonstrated the ability to identify risks and adapt our strategies to p

116、rotect the Company.GE acted quickly to improve liquidity,raise capital,and transform our financial businesses.We have also exited businesses with unacceptable rates of risk-adjusted return.We believe it is important to continue to reward those who demonstrate this disciplined ability to protect our

117、businesses,but its only appropriate that certain components of compensation will decline during periods of economic stress and reduced earnings.It is in this context that we have determined 2008 incentive compensation awards.In one of the most difficult operating environments in memory,GEs leadershi

118、p delivered more than$18 billion in earnings in 2008,and our industrial and financial earnings compared very favorably to the S&P 500.This was 14 ge 2008 annual reportthe third best earnings year in GEs history.At the same time,however,our 2008 earnings from continuing operations were down 19%compar

119、ed to 2007.To align compensation with our financial performance,we reduced the size of our 2008 average bonus awards by 19%from 2007.GE Earnings Versus S&P 500 EarningsIncrease(decrease)in earnings from 2007GE Consolidated(1)(19)%S&P 500(2)(30)%GE Industrial Businesses(3)5%S&P 500 Industrial Sector(

120、2)(0)%GE Financial Businesses(4)(37)%S&P 500 Financial Sector(2)(170)%(1)Represents earnings from continuing operations.(2)Represents operating earnings as reported by Standard&Poors.2008 earnings are based upon companies that have reported as of February 2,2009.(3)Consists of GE Energy Infrastructu

121、re,GE Technology Infrastructure,NBC Universal and Consumer&Industrial.(4)Represents GE Capital Services.Leadership in the Challenging Times that Lie AheadIn the midst of this recession,we look to our extremely capable and well-trained managers to keep GE safe and focused on long-term shareowner valu

122、e creation.The Board holds our leaders to an extremely high standard we expect them to manage their businesses with a sense of ownership that is informed both by their deep operational expertise and a broad understanding of how industry dynamics and global economic conditions will affect their busin

123、esses now and into the future.These may be unprecedented times,but we are confident that GE has a capable,well-trained group of leaders that will secure the long-term health,growth,and profitability of the company.In the challenging times ahead,growing and retaining strong leaders and rewarding them

124、 appropriately for disciplined and thoughtful management will remain strategic imperatives for GE.Sincerely,Ralph S.LarsenChairman,Management Development and Compensation Committee February 6,2009Sustain operating excellence and financial discipline?total in GEs history?in a safe and responsible way

125、?paper debt and diversified its funding sourcesCreate a more valuable portfolio of businesses?as a smaller,more focused finance companyDrive organic revenue growth at 2 to 3 times gross domestic product?Retain an excellent team with a strong culture?and GE MoneyManage the Companys risk and reputatio

126、n?Beijing 2008 Olympic GamesBuild an excellent investor base?Lead the Board activities?STRATEGIC&OPERATIONAL GOALSFINANCIAL OBJECTIVES Change From(Continuing operations)Goal Performance Prior YearRevenues(In$billions)190 195 183 6%Earnings(In$billions)24.2+18.1(19)%EPS($per share)2.42+1.78(19)%CFOA(

127、In$billions)23 26 19.1(18)%ROTC(%)20 14.8(410)bpMargins(%)17 15.6(100)bp2008 CEO Goals&Objectivesge 2008 annual report15The GE Board held 22 meetings in 2008,and each outside Board member visited at least two GE businesses without the involvement of corporate management,in order to develop his or he

128、r own feel for the Company.James J.Mulva 4Chairman,President and Chief Executive Officer,ConocoPhillips,international integrated energy company,Houston,Texas.Director since 2008.claudio X.gonzalez 1,2,3Chairman of the Board,Kimberly-Clark de Mexico,S.A.de C.V.,Mexico City,Mexico,consumer products.Di

129、rector since 1993.robert W.lane 1Chairman of the Board and Chief Executive Officer,Deere&Company,agricultural,construction,and forestry equipment,Moline,Illinois.Director since 2005.Andrea Jung 2,3Chairman of the Board and Chief Executive Officer,Avon Products,Inc.,beauty products,New York,New York.

130、Director since 1998.Susan hockfield 3,4President of the Massachusetts Institute of Technology,Cambridge,Massachusetts.Director since 2006.roger S.penske 4Chairman of the Board,Penske Corporation,Penske Truck Leasing Corporation,and Penske Automotive Group,Inc.,diversified transportation company,Detr

131、oit,Michigan.Director since 1994.Alan g.(A.g.)lafley 3Chairman of the Board and Chief Executive Officer,Procter&Gamble Company,personal and household products,Cincinnati,Ohio.Director since 2002.James i.cash,Jr.1,4Emeritus James E.Robison Professor of Business Administration,Harvard Graduate School

132、of Business,Boston,Massachusetts.Director since 1997.Sam Nunn 2,4Co-Chairman and Chief Executive Officer,Nuclear Threat Initiative,Washington,D.C.Director since 1997.Ann M.fudge 4Former Chairman and Chief Executive Officer,Young&Rubicam Brands,global marketing communications network,New York,New Yor

133、k.Director since 1999.Sir William M.castell 4Former Vice Chairman,General Electric Company.Director since 2004.douglas A.Warner iii 1,2,3Former Chairman of the Board,J.P.Morgan Chase&Co.,The Chase Manhattan Bank,and Morgan Guaranty Trust Company,investment banking,New York,New York.Director since 19

134、92.ralph S.larsen 2,3,5Former Chairman of the Board and Chief Executive Officer,Johnson&Johnson,phar-maceutical,medical and consumer prod-ucts,New Brunswick,New Jersey.Director since 2002.robert J.Swieringa 1Professor of Accounting and former Anne and Elmer Lindseth Dean,S.C.Johnson Graduate School

135、of Management,Cornell University,Ithaca,New York.Director since 2002.rochelle B.lazarus 3,4Chairman and Chief Executive Officer,Ogilvy&Mather Worldwide,global marketing communications company,New York,New York.Director since 2000.Jeffrey r.immelt 4Chairman of the Board and Chief Executive Officer,Ge

136、neral Electric Company.Director since 2000.(pictured on page 1)1 Audit committee2 Management development and compensation committee3 Nominating and corporate governance committee4 public responsibilities committee5 presiding directoriNterNAl directorSeXterNAl directorS(left to right)The Board focuse

137、s on the areas that are important to share-owners strategy,risk management,leadership development,and regulatory matters and in 2008,received briefings on a variety of issues including U.S.and global tax policy,environmental risk management,healthcare costs,liquidity and credit risk,global project a

138、nd product execution,CSA portfolio management and commitment,the impact of changing public policy on core markets around the world,and privacy and copyright protection.At the end of the year,the Board and each of its committees conducted a thorough self-evaluation.16 ge 2008 annual report208941_ande

139、rson-narrative.indd 162/23/09 5:02 PM ge 2008 annual report 17fi nanci al secti onContents18 Managements Discussion of Financial Responsibility.We begin with a letter from our Chief Executive and Financial Officers discussing our unyielding commitment to rigorous oversight,controllership,informative

140、 disclosure and visibility to investors.18 Managements Annual Report on Internal Control Over Financial Reporting.In this report our Chief Executive and Financial Officers provide their assessment of the effectiveness of our internal control over financial reporting.19 Report of Independent Register

141、ed Public Accounting Firm.Our independent auditors,KPMG LLP,express their opinions on our financial statements and our internal control over financial reporting.20 Managements Discussion and Analysis(MD&A)20 Operations.We begin the Operations section of MD&A with an overview of our earnings,includin

142、g a perspective on how the global economic environment has affected our businesses over the last three years.We then discuss various key operating results for GE industrial(GE)and financial services(GECS).Because of the fundamental differences in these businesses,reviewing certain information separa

143、tely for GE and GECS offers a more meaningful analysis.Next we provide a description of our global risk management process.Our discussion of segment results includes quantitative and qualitative disclosure about the factors affecting segment revenues and profits,and the effects of recent acquisition

144、s,dispositions and significant transactions.We conclude the Operations section with an overview of our operations from a geographic perspective and a discussion of environmental matters.32 Financial Resources and Liquidity.In the Financial Resources and Liquidity section of MD&A,we provide an overvi

145、ew of the major factors that affected our consolidated financial position and insight into the liquidity and cash flow activities of GE and GECS.44 Critical Accounting Estimates.Critical Accounting Estimates are necessary for us to prepare our financial statements.In this section,we discuss what the

146、se estimates are,why they are important,how they are developed and uncertainties to which they are subject.48 Other Information.We conclude MD&A with a brief discussion of new accounting standards that will become effective for us beginning in 2009.49 Selected Financial Data.Selected Financial Data

147、provides five years of financial information for GE and GECS.This table includes commonly used metrics that facilitate comparison with other companies.50 Audited Financial Statements and Notes 50 Statement of Earnings 50 Consolidated Statement of Changes in Shareowners Equity 52 Statement of Financi

148、al Position 54 Statement of Cash Flows 56 Notes to Consolidated Financial Statements102 Supplemental Information.We provide Supplemental Information to reconcile certain“non-GAAP financial measures”referred to in our report to the most closely associated GAAP financial measures.We also provide infor

149、mation about our stock performance over the last five years.106 Glossary.For your convenience,we also provide a Glossary of key terms used in our financial statements.We also present our financial information electronically at ge 2008 annual reportManagements Discussion of Financial ResponsibilityWe

150、 believe that great companies are built on a foundation of reliable financial information and compliance with the spirit and letter of the law.For General Electric Company,that foundation includes rigorous management oversight of,and an unyielding dedication to,controllership.The financial disclosur

151、es in this report are one product of our commitment to high quality financial reporting.In addition,we make every effort to adopt appropriate accounting policies,we devote our full resources to ensuring that those policies are applied properly and consistently and we do our best to fairly present ou

152、r financial results in a manner that is complete and understandable.Members of our corporate leadership team review each of our businesses routinely on matters that range from overall strategy and financial performance to staffing and compliance.Our business leaders monitor financial and operating s

153、ystems,enabling us to identify potential opportunities and concerns at an early stage and positioning us to respond rapidly.Our Board of Directors oversees managements business conduct,and our Audit Committee,which consists entirely of independent directors,oversees our internal control over financi

154、al reporting.We continu-ally examine our governance practices in an effort to enhance investor trust and improve the Boards overall effectiveness.The Board and its committees annually conduct a performance self-evaluation and recommend improvements.Our Presiding Director led three meetings of non-ma

155、nagement directors this year,helping us sharpen our full Board meetings to better cover significant topics.Compensation policies for our executives are aligned with the long-term interests of GE investors.In the last year we identified and disclosed certain immaterial errors in our previously report

156、ed financial results.We,and our Audit Committee,take matters such as this very seriously and we have taken steps to further strengthen our controllership organization,processes and procedures.We strive to maintain a dynamic system of internal controls and procedures including internal control over f

157、inancial reporting designed to ensure reliable financial record-keeping,transparent financial reporting and disclosure,and protection of physical and intellectual property.We recruit,develop and retain a world-class financial team.Our internal audit function,including members of our Corporate Audit

158、Staff,conducts thousands of financial,compliance and process improvement audits each year.Our Audit Committee oversees the scope and evaluates the overall results of these audits,and members of that Committee regularly attend GE Capital Services Board of Directors,Corporate Audit Staff and Controlle

159、rship Council meetings.Our global integrity policies “The Spirit&The Letter”require compliance with law and policy,and pertain to such vital issues as upholding financial integrity and avoiding conflicts of interest.These integrity policies are available in 31 languages,and are provided to all of ou

160、r employees,holding each of them accountable for compliance.Our strong compliance culture reinforces these efforts by requiring employees to raise any compliance concerns and by prohibiting retribution for doing so.To facilitate open and candid communication,we have designated ombudspersons througho

161、ut the Company to act as independent resources for reporting integrity or compliance concerns.We hold our directors,consultants,agents and indepen-dent contractors to the same integrity standards.We are keenly aware of the importance of full and open presentation of our financial position and operat

162、ing results and rely for this purpose on our disclosure controls and procedures,including our Disclosure Committee,which comprises senior executives with detailed knowledge of our businesses and the related needs of our investors.We ask this committee to review our compliance with accounting and dis

163、closure requirements,to evaluate the fairness of our financial and non-financial disclo-sures,and to report their findings to us.We further ensure strong disclosure by holding more than 200 analyst and investor meetings annually.We welcome the strong oversight of our financial reporting activities b

164、y our independent registered public accounting firm,KPMG LLP,engaged by and reporting directly to the Audit Committee.U.S.legislation requires management to report on internal control over financial reporting and for auditors to render an opinion on such controls.Our report follows and the KPMG LLP

165、report for 2008 appears on the following page.Managements Annual Report on Internal Control Over Financial ReportingManagement is responsible for establishing and maintaining adequate internal control over financial reporting for the Company.With our participation,an evaluation of the effectiveness

166、of our internal control over financial reporting was conducted as of December 31,2008,based on the framework and criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.Based on this evaluation,our management has co

167、ncluded that our internal control over financial reporting was effective as of December 31,2008.Our independent registered public accounting firm has issued an audit report on our internal control over financial reporting.Their report appears on the following page.JEFFREY R.IMMELT KEITH S.SHERINChai

168、rman of the Board and Vice Chairman andChief Executive Officer Chief Financial OfficerFebruary 6,2009 ge 2008 annual report 19Report of Independent Registered Public Accounting FirmTo Shareowners and Board of Directors of General Electric Company:We have audited the accompanying statement of financi

169、al position of General Electric Company and consolidated affiliates(“GE”)as of December 31,2008 and 2007,and the related statements of earnings,changes in shareowners equity and cash flows for each of the years in the three-year period ended December 31,2008.We also have audited GEs internal control

170、 over financial reporting as of December 31,2008,based on criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission(“COSO”).GE management is responsible for these consolidated financial statements,for maintaining effe

171、ctive internal control over financial reporting,and for its assessment of the effectiveness of internal control over financial reporting.Our responsibility is to express an opinion on these consolidated financial statements and an opinion on GEs internal control over financial reporting based on our

172、 audits.We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board(United States).Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial state-ments are free of material misstatement and wh

173、ether effective internal control over financial reporting was maintained in all material respects.Our audits of the consolidated financial state-ments included examining,on a test basis,evidence supporting the amounts and disclosures in the financial statements,assessing the accounting principles us

174、ed and significant estimates made by management,and evaluating the overall financial statement presentation.Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting,assessing the risk that a material weakness exists,and t

175、esting and evaluating the design and operating effectiveness of internal control based on the assessed risk.Our audits also included performing such other procedures as we considered necessary in the circumstances.We believe that our audits provide a reasonable basis for our opinions.A companys inte

176、rnal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.A companys internal control over

177、financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that,in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company;(2)provide reasonable assurance that transactions are recorded as necessary

178、to permit preparation of financial statements in accordance with generally accepted accounting principles,and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;and(3)provide reasonable assurance regarding pr

179、evention or timely detection of unauthorized acquisition,use,or disposition of the companys assets that could have a material effect on the financial statements.Because of its inherent limitations,internal control over finan-cial reporting may not prevent or detect misstatements.Also,projections of

180、any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,or that the degree of compliance with the policies or procedures may deteriorate.In our opinion,the consolidated financial statements appearing on pages 50,5

181、2,54,56 101 and the Summary of Operating Segments table on page 26 present fairly,in all material respects,the financial position of GE as of December 31,2008 and 2007,and the results of its operations and its cash flows for each of the years in the three-year period ended December 31,2008,in confor

182、mity with U.S.generally accepted accounting principles.Also,in our opinion,GE maintained,in all material respects,effec-tive internal control over financial reporting as of December 31,2008,based on criteria established in Internal Control Integrated Framework issued by COSO.As discussed in Note 1 t

183、o the consolidated financial statements,GE,in 2008,changed its method of accounting for fair value measurements and adopted the fair value option for certain finan-cial assets and financial liabilities,in 2007,changed its methods of accounting for uncertainty in income taxes and for a change or proj

184、ected change in the timing of cash flows relating to income taxes generated by leveraged lease transactions,and,in 2006,changed its methods of accounting for pension and other postretirement benefits and for share-based compensation.Our audits of GEs consolidated financial statements were made for t

185、he purpose of forming an opinion on the consolidated financial statements taken as a whole.The accompanying consolidating information appearing on pages 51,53 and 55 is presented for purposes of additional analysis of the consolidated financial statements rather than to present the financial positio

186、n,results of operations and cash flows of the individual entities.The consoli-dating information has been subjected to the auditing procedures applied in the audits of the consolidated financial statements and,in our opinion,is fairly stated in all material respects in relation to the consolidated f

187、inancial statements taken as a whole.KPMG LLPStamford,Connecticut February 6,200920 ge 2008 annual reportOperationsOur consolidated financial statements combine the industrial manufacturing,services and media businesses of General Electric Company(GE)with the financial services businesses of General

188、 Electric Capital Services,Inc.(GECS or financial services).In the accompanying analysis of financial information,we sometimes use information derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S.generally accepted accounting p

189、rinciples(GAAP).Certain of these data are considered“non-GAAP financial measures”under the U.S.Securities and Exchange Commission(SEC)rules.For such measures,we have provided supplemental explanations and reconciliations in the Supplemental Information section.We present Managements Discussion of Op

190、erations in five parts:Overview of Our Earnings from 2006 through 2008,Global Risk Management,Segment Operations,Geographic Operations and Environmental Matters.Unless otherwise indicated,we refer to captions such as revenues and earnings from continuing operations simply as“revenues”and“earnings”th

191、roughout this Managements Discussion and Analysis.Similarly,discussion of other matters in our consolidated financial statements relates to continuing operations unless otherwise indicated.Overview of Our Earnings from 2006 through 2008Our results for the last three years reflect our strategy to str

192、engthen our position as a worldwide growth company operat-ing in diverse industries in which we maintain strong market-leader positions.During 2008,we encountered unprecedented conditions in the world economy and financial markets that affected all of our businesses.Over the three-year period our co

193、nsolidated revenues grew 20%on organic growth that averaged 6%per year,yet earnings declined 6%.Our financial services businesses were most significantly affected as earnings fell 24%on a 16%increase in revenues over this three-year period.The information that follows will show how our global diver-

194、sification and risk management strategies have helped us to grow revenues and industrial earnings to record levels and to outperform our peers in financial services businesses.We also believe that the disposition of our less strategic businesses,our restructuring actions and our investment in busine

195、sses with strong growth potential have positioned us well for the future.Energy Infrastructure(19%and 18%of consolidated three-year revenues and total segment profit,respectively)was well positioned to grow significantly over the last several years as the worldwide demand for energy,and for alternat

196、ive sources of power,such as wind and thermal,rose to new levels.This resulted in a 53%increase in revenues and a 73%increase in segment profit over the three-year period.We continued to invest in market-leading technology and services at Energy,Oil&Gas and Water.Technology Infrastructure(25%and 29%

197、of consolidated three-year revenues and total segment profit,respectively)grew revenues 23%and earnings 12%over the three-year period as we continued to invest in market-leading technologies and ser-vices at Aviation and Transportation and strategic acquisitions at Healthcare.Aviation continued to g

198、row revenues and earnings to record levels as one of the worlds leading providers of aircraft engines and services.The Aviation orders backlog also contin-ued to grow,positioning us well for the future.Product services and sales of our Evolution Series locomotives contributed to Transportations grow

199、th over the last three years and we have invested heavily in expanding our global platform.Healthcare realized benefits from the acquisition of IDX Systems Corporation in 2006,expanding the breadth of our product and service offerings to the healthcare industry.Healthcare was adversely affected by t

200、he effects of the Deficit Reduction Act on U.S.equipment sales.In addition,lower sales of surgical imaging equipment resulted from a regulatory suspension on shipments at one of our facilities.We began shipping some of these products in the first half of 2008.Enterprise Solutions offers protection a

201、nd productivity solutions such as safe facilities,plant automation,power control and sensing applications.NBC Universal(10%and 11%of consolidated three-year rev-enues and total segment profit,respectively)is a diversified media and entertainment company that has grown through business and geographic

202、 diversity.While the television business continues to be challenged by the effects of a difficult economy,our cable business continues to grow and become more profitable.Our film business also continues to perform well,with consistent contri-butions to earnings.Capital Finance(37%and 39%of consolida

203、ted three-year revenues and total segment profit,respectively)is a strong,focused business with leading positions in several mid-market,corporate and consumer financing segments.Our performance has been strong over the long-term,with solid risk management and underwriting through various credit cycl

204、es.More recently,we have been affected by economic changes,specifically the disruptions in capital markets,challenging credit market environ-ment and rising unemployment.Our earnings in 2008 and 2007 were$8.6 billion and$12.2 billion,respectively.We expect the current challenging credit and economic

205、 environment to continue to affect our earnings in 2009.Throughout 2008,we tightened underwriting standards,shifted teams from origination to collec-tion and maintained a proactive risk management focus.Our focus is to manage through the current challenging credit environment and reposition GE Capit

206、al as a diversely funded and smaller finance company.Consumer&Industrial(7%and 3%of consolidated three-year revenues and total segment profit,respectively)is particularly sensitive to changes in economic conditions.Reflective of the downturn in the U.S.housing market,Consumer&Industrial revenues hav

207、e declined over the three-year period.In response to these tough economic conditions,in 2007,Consumer&Industrial began a restructuring plan focused on reducing manufacturing capacity and transferring work to lower-cost countries.Despite managements di scussi on and anal ysi smanagements di scussi on

208、 and anal ysi s ge 2008 annual report 21these cost reduction efforts,segment profit declined on higher material and other costs.Overall,acquisitions contributed$7.4 billion,$7.7 billion and$3.9 billion to consolidated revenues in 2008,2007 and 2006,respectively.Our consolidated earnings included app

209、roximately$0.8 billion in 2008,and$0.5 billion in both 2007 and 2006,from acquired businesses.We integrate acquisitions as quickly as pos-sible.Only revenues and earnings from the date we complete the acquisition through the end of the fourth following quarter are attributed to such businesses.Dispo

210、sitions also affected our ongoing results through higher revenues of$0.1 billion in 2008 and lower revenues of$3.6 billion and$1.3 billion in 2007 and 2006,respectively.This resulted in higher earnings of$0.4 billion in both 2008 and 2007,and$0.1 billion in 2006.Significant matters relating to our S

211、tatement of Earnings are explained below.DISCONTINUED OPERATIONS.In September 2007,we committed to a plan to sell our Japanese personal loan business(Lake)upon determining that,despite restructuring,Japanese regulatory lim-its for interest charges on unsecured personal loans did not per-mit us to ea

212、rn an acceptable return.During 2008,we completed the sale of GE Money Japan,which included Lake,along with our Japanese mortgage and card businesses,excluding our minority ownership in GE Nissen Credit Co.,Ltd.In December 2007,we completed the exit of WMC as a result of continued pressures in the U.

213、S.subprime mortgage industry.Both of these businesses were previously reported in the Capital Finance segment.In August 2007,we completed the sale of our Plastics busi-ness.We sold this business because of its cyclicality,rising costs of natural gas and raw materials,and the decision to redeploy cap

214、ital resources into higher-growth businesses.During 2006,we sold our Advanced Materials business.In 2006,we substantially completed our planned exit of the insurance businesses through the sale of the property and casu-alty insurance and reinsurance businesses and the European life and health operat

215、ions of GE Insurance Solutions Corporation(GE Insurance Solutions)and the sale of GE Life,our U.K.-based life insurance operation,to Swiss Reinsurance Company(Swiss Re),and the sale,through a secondary public offering,of our remain-ing 18%investment in Genworth Financial,Inc.(Genworth),our formerly

216、wholly-owned subsidiary that conducted most of our consumer insurance business,including life and mortgage insur-ance operations.We reported the businesses described above as discontinued operations for all periods presented.For further information about discontinued operations,see Note 2.WE DECLARE

217、D$12.6 BILLION IN DIVIDENDS IN 2008.Common per-share dividends of$1.24 were up 8%from 2007,following a 12%increase from the preceding year.On February 6,2009,our Board of Directors approved a regular quarterly dividend of$0.31 per share of common stock,which is payable April 27,2009,to share-owners

218、of record at close of business on February 23,2009.This payment will complete the dividend for the first half of 2009.The Board will continue to evaluate the Companys dividend level for the second half of 2009 in light of the growing uncertainty in the economy,including U.S.government actions,rising

219、 unemployment and the recent announcements by the rating agencies.In 2008,we declared$0.1 billion in preferred stock dividends.Except as otherwise noted,the analysis in the remainder of this section presents the results of GE(with GECS included on a one-line basis)and GECS.See the Segment Operations

220、 section for a more detailed discussion of the businesses within GE and GECS.GE SALES OF PRODUCT SERVICES were$35.5 billion in 2008,a 10%increase from 2007.Increases in product services in 2008 and 2007 were led by growth at Energy Infrastructure and Technology Infrastructure.Operating profit from p

221、roduct services was$9.3 billion in 2008,up 3%from 2007.POSTRETIREMENT BENEFIT PLANS costs were$2.2 billion,$2.6 bil-lion and$2.3 billion in 2008,2007 and 2006,respectively.The cost decreased in 2008 primarily because of the effects of prior years investment gains,higher discount rates and benefits f

222、rom new healthcare supplier contracts,partially offset by additional costs of plan benefits resulting from union negotiations and a pensioner increase in 2007.The cost increased in 2007 primarily because of plan benefit changes resulting from new U.S.labor agreements and increases in retiree medical

223、 and drug costs,partially offset by increases in discount rates for the year and effects of recent investment gains.The cost increased in 2006 primarily because of the effects of prior-years investment losses and lower discount rates.Considering the current and expected asset allocations,as well as

224、historical and expected returns on various categories of assets in which our plans are invested,we have assumed that long-term returns on our principal pension plan assets will be 8.5%for cost recognition in 2009,the same level as we assumed in 2008,2007 and 2006.GAAP provides recognition of differe

225、nces between assumed and actual returns over a period no longer than the average future service of employees.We expect the costs of our postretirement benefits in 2009 to be about the same as the 2008 costs.The effects of decreasing discount rates(principal pension plans discount rate decreasing fro

226、m 6.34%to 6.11%)will be largely offset by prior-years invest-ment gains and benefits from new healthcare supplier contracts.Assuming our 2009 actual experience is consistent with our current benefit assumptions(e.g.,expected return on assets,discount rates and healthcare trend rates),we expect that

227、costs of our postretirement benefits will increase by approximately$1.0 billion in 2010 as compared to 2009,primarily due to amortization of our unamortized losses relating to our principal pension plans.managements di scussi on and anal ysi s22 ge 2008 annual report$521.2 billion,$456.4 billion and

228、$389.0 billion in 2008,2007 and 2006,respectively.GECS average composite effective interest rate was 4.8%in 2008,5.0%in 2007 and 4.6%in 2006.In 2008,GECS average assets of$667.2 billion were 13%higher than in 2007,which in turn were 17%higher than in 2006.We anticipate that our composite rates will

229、continue to decline through 2009 as a result of decreased benchmark rates globally.However,these decreases in benchmark rates will be partially offset by higher credit spreads and fees associated with government guarantees and higher cash balances resulting from pre-funding of debt maturities and th

230、e need to maintain greater liquidity in the current environment.See the Liquidity and Borrowings section for a discussion of liquidity,borrowings and interest rate risk management.INCOME TAXES are a significant cost.As a global commercial enterprise,our tax rates are affected by many factors,includi

231、ng our global mix of earnings,the extent to which those global earnings are indefinitely reinvested outside the United States,legislation,acquisitions,dispositions and tax characteristics of our income.Our tax returns are routinely audited and settlements of issues raised in these audits sometimes a

232、ffect our tax provisions.Income taxes on consolidated earnings from continuing operations were 5.5%in 2008 compared with 15.6%in 2007 and 16.9%in 2006.Our consolidated income tax rate decreased from 2007 to 2008 primarily because of a reduction during 2008 of income in higher-taxed jurisdictions.Thi

233、s increased the relative effect of tax benefits from lower-taxed global operations on the tax rate.In addition,earnings from lower-taxed global operations increased from 2007 to 2008.The increase in the benefit from lower-taxed global operations includes a benefit from the 2008 decision to indefinit

234、ely reinvest,outside the U.S.,prior-year earnings because the use of foreign tax credits no longer required the repatriation of those prior-year earnings.Our consolidated income tax rate decreased from 2006 to 2007 as the tax benefit on the disposition of our investment in SES and an increase in fav

235、orable settlements with tax authorities more than offset a decrease in the benefit from lower-taxed earnings from global operations,which in 2006 included one-time tax benefits from planning to use non-U.S.tax net operating losses.A more detailed analysis of differences between the U.S.federal statu

236、tory rate and the consolidated rate,as well as other information about our income tax provisions,is provided in Note 7.The nature of business activities and associated income taxes differ for GE and for GECS and a separate analysis of each is presented in the paragraphs that follow.Because GE tax ex

237、pense does not include taxes on GECS earnings,the GE effective tax rate is best analyzed in relation to GE earnings excluding GECS.GE pre-tax earnings from continuing operations,excluding GECS earnings from continuing operations,were$13.7 billion,$12.8 billion and$11.7 billion for 2008,2007 and 2006

238、,respectively.On this basis,GEs effective tax rate was 24.9%in 2008,21.8%in 2007 and 21.9%in 2006.Our principal pension plans were underfunded by$4.4 billion at the end of 2008 as compared to overfunded by$16.8 billion at December 31,2007.At December 31,2008,the GE Pension Plan was underfunded by$0.

239、9 billion and the GE Supplementary Pension Plan,which is an unfunded plan,had a projected benefit obligation of$3.5 billion.The reduction in surplus from year-end 2007 was primarily attributable to asset investment performance resulting from the deteriorating market conditions and economic environme

240、nt in 2008.Our principal pension plans assets decreased from$59.7 billion at the end of 2007 to$40.7 billion at December 31,2008,a 28.2%decline in investment values during the year.Assets of the GE Pension Plan are held in trust,solely for the benefit of Plan participants,and are not available for g

241、eneral Company operations.Although the reduction in pension plan assets in 2008 will impact future pension plan costs,the Companys requirement to make future cash contributions to the Trust will depend on future market and economic conditions.On an Employee Retirement Income Security Act(ERISA)basis

242、,the GE Pension Plan remains fully funded at January 1,2009.We will not make any contributions to the GE Pension Plan in 2009.Assuming our 2009 actual experience is consistent with our current benefit assumptions(e.g.,expected return on assets and interest rates),we will not be required to make cont

243、ributions to the GE Pension Plan in 2010.At December 31,2008,the fair value of assets for our other pension plans was$2.4 billion less than the respective projected benefit obligations.The comparable amount at December 31,2007 was$1.6 billion.We expect to contribute$0.7 billion to our other pension

244、plans in 2009,compared with actual contributions of$0.6 billion and$0.7 billion in 2008 and 2007,respectively.Our principal retiree health and life plans obligations exceeded the fair value of related assets by$10.8 billion and$11.2 billion at December 31,2008 and 2007,respectively.We fund our retir

245、ee health benefits on a pay-as-you-go basis.We expect to contribute$0.7 billion to these plans in 2009 compared with actual contri-butions of$0.6 billion in 2008 and 2007.The funded status of our postretirement benefits plans and future effects on operating results depend on economic conditions and

246、investment performance.See Note 6 for additional informa-tion about funded status,components of earnings effects and actuarial assumptions.GE OTHER COSTS AND EXPENSES are selling,general and adminis-trative expenses.These costs were 12.9%,14.2%and 14.3%of total GE sales in 2008,2007 and 2006,respect

247、ively.INTEREST ON BORROWINGS AND OTHER FINANCIAL CHARGES amounted to$26.2 billion,$23.8 billion and$18.9 billion in 2008,2007 and 2006,respectively.Substantially all of our borrowings are in financial services,where interest expense was$25.1 billion,$22.7 billion and$17.8 billion in 2008,2007 and 20

248、06,respectively.Average borrowings increased over the three-year period.Interest rates increased from 2006 to 2007 attributable to rising credit spreads.Interest rates have decreased from 2007 to 2008 in line with general market conditions.GECS average borrowings were managements di scussi on and an

249、al ysi s ge 2008 annual report 23As a result of the repeal of the extraterritorial income(ETI)taxing regime as part of the American Jobs Creation Act of 2004(the Act),our aircraft leasing business no longer qualifies for a reduced U.S.tax rate.However,the Act also extended to aircraft leasing the U.

250、S.tax deferral benefits that were already available to other GE non-U.S.active operations.These legislative changes,coupled with a reorganization of our aircraft leasing business and a favorable Irish ruling,decreased the GECS effective tax rate 1.1 percentage points in 2006.Global Risk ManagementA

251、disciplined approach to risk is important in a diversified organi-zation such as ours in order to ensure that we are executing according to our strategic objectives and that we only accept risk for which we are adequately compensated.It is necessary for us to manage risk at the individual transactio

252、n level,and to consider aggregate risk at the customer,industry,geographic and collateral-type levels,where appropriate.The GE Board of Directors maintains overall responsibility for risk oversight,with a focus on the most significant risks facing GE.The Boards Audit Committee oversees GEs risk poli

253、cies and processes relating to the financial statements and financial reporting process.The Boards Public Responsibilities Committee oversees risks involved in GEs public policy initiatives,the environment and similar matters.The Boards Management Development and Compensation Committee oversees risk

254、 related to compensation.The Boards oversight process builds upon our managements risk management and assessment processes,which include long-term strategic planning,executive development and evaluation,regulatory and litigation compliance reviews,environmental compliance reviews,GECS Corporate Risk

255、 Function and the Corporate Risk Committee.Each year,management and the Board jointly develop a list of major risks that GE plans to address.Throughout the year,either the Board or one of its committees dedicates a portion of their meetings to review and discuss these risk topics in greater detail.S

256、trategic and operational risks are covered in the CEOs report on operations to the Board at regularly scheduled Board meetings.At least twice a year,the Audit Committee receives a risk update from the GECS risk officer,which focuses on GECS risk strategy and its financial services portfolio,includin

257、g its processes for managing credit and market risk within its portfolio.In addition,each year,and in some years more frequently,the Audit Committee receives a comprehensive report from GEs Treasurer on GECS capital markets exposure and its liquidity and funding risks and a comprehensive report from

258、 GEs General Counsel covering compliance issues.Each year,the Committee also reviews and discusses topics related to the financial reporting process,including an update on information technology,controllership,insurance,tax strategies and policies,accounting and numerous reports on regulation,compli

259、ance,litigation and investigations affecting GE businesses.Resolution of audit matters reduced the GE effective tax rate throughout this period.The effects of such resolutions are included in the following captions in Note 7:Audit resolutions effect on GE excluding GECS tax rate 2008 2007 2006Tax on

260、 global activities including exports%(2.7)%(0.8)%All other net (0.6)(2.4)(0.8)(0.6)%(5.1)%(1.6)%The GE effective tax rate increased from 2007 to 2008 because of the 4.5 percentage point lower 2008 benefit from favorable audit resolutions,partially offset by a 1.0 percentage point increase in the ben

261、efit in lower-taxed earnings from global operations,excluding audit resolutions.The GE effective tax rate declined slightly from 2006 to 2007 because the 3.5 percentage point higher 2007 benefit from favorable audit resolutions was largely offset by a 3.3 percentage point decrease in the benefit in

262、lower-taxed earnings from global operations,excluding audit resolutions and the effect of tax law changes.The 2006 benefit from global operations included tax benefits from planning to use non-U.S.net operating losses against profitable operations.The 2006 GE rate reflects the favorable audit resolu

263、tions shown above and the benefit of lower-taxed earnings from global operations including tax benefits from planning to use non-U.S.net operating losses against profitable operations.The GECS effective tax rate was(44.0)%in 2008,compared with 9.9%in 2007 and 12.0%in 2006.GE and GECS file a consolid

264、ated U.S.federal income tax return that enables GE to use GECS tax deductions and credits to reduce the tax that otherwise would have been payable by GE.The GECS effective tax rate for each period reflects the benefit of these tax reductions.GE makes cash payments to GECS for these tax reductions at

265、 the time GEs tax payments are due.The GECS rate decreased from 2007 to 2008 primarily because of a reduction during 2008 of income in higher-taxed jurisdictions.This increased the relative effect of tax benefits from lower-taxed global operations on the tax rate,reducing the rate 32.7 percentage po

266、ints.In addition,earnings from lower-taxed global operations increased from 2007 to 2008,causing an additional 20.7 percentage point rate reduction.The increase in the benefit from lower-taxed global operations includes 6.5 percentage points from the 2008 decision to indefinitely reinvest,outside th

267、e U.S.,prior-year earnings because the use of foreign tax credits no longer required the repatriation of those prior-year earnings.The GECS income tax rate decreased from 2006 to 2007 as the tax benefit on the disposition of its investment in SES and growth in lower-taxed global earnings,which decre

268、ased the GECS effective tax rate 4.0 and 1.0 percentage points,respectively,were partially offset by higher net tax expense related to U.S.and non-U.S.audit activity and from the absence of the 2006 benefit of the reorganization,discussed below,of our aircraft leasing business,which increased the ra

269、te 1.6 and 1.1 percentage points,respectively.managements di scussi on and anal ysi s24 ge 2008 annual report?Market risk is the potential loss in value of investment and other asset and liability portfolios,including financial instruments and residual values of leased assets.This risk is caused by

270、changes in market variables,such as interest and currency exchange rates and equity and commodity prices.We are exposed to market risk in the normal course of our business operations as a result of our ongoing investing and funding activities.Additional information can be found in the Financial Reso

271、urces and Liquidity section and in Notes 6,9,12,14,28 and 29.?Government and regulatory risk is the risk that the government or regulatory authorities will implement new laws or rules,amend existing laws or rules,or interpret or enforce them in ways that would cause us to have to change our business

272、 models or practices.We manage these risks through the GECS Board,our Policy Compliance Review Board and our Corporate Risk Committee.Other risks include natural disasters,availability of necessary materials,guarantees of product performance and business interruption.These types of risks are often i

273、nsurable,and success in managing these risks is ultimately determined by the balance between the level of risk retained or assumed and the cost of transferring risk to others.Our risk management approach has the following major tenets:a broad spread of risk based on managed exposure limits;senior,se

274、cured commercial financings;and a hold to maturity model with transactions underwritten to our“on-book”standards.The GECC financing portfolios comprise approximately 70%commercial and 30%consumer risk activities,with 53%of the portfolio outside the U.S.Exposure to developing markets is 11%of the por

275、tfolio and is primarily through our Eastern European banking operations and Mexican commercial financing activities where we have operated for over 10 years and various minority-owned joint ventures.The commercial portfolio has a maximum single industry concentration of 6%,excluding the commercial a

276、ircraft financing and the commercial real estate businesses,which are diversified separately within their respective portfolios.67%of all commercial exposures are less than$100 million to any one customer,while 55%are less than$50 million.Our commercial aircraft financing business owns 1,494 aircraf

277、t 56%are narrow body planes and predominantly newer,high-demand models,while only 15%are smaller regional jets and older Boeing 737 classic aircraft.The average age of the fleet is 7 years and our customers include over 230 airlines located in 70 countries.Leased collateral represents asset types we

278、 have over 20 years experience managing.The GECS Board of Directors oversees the risk management process,and approves all significant acquisitions and dispositions as well as significant borrowings and investments.All participants in the risk management process must comply with approval limits estab

279、lished by the GECS Board.The GECS Chief Risk Officer is responsible,with the Corporate Risk Function,for establishing standards for the measurement,reporting and limiting of risk;for managing and evaluating risk managers;for approving risk management policies;and for reviewing major risk exposures a

280、nd concentrations across the organization.The GECS Corporate Risk Function analyzes certain business risks and assesses them in relation to aggregate risk appetite and approval limits set by the GECS Board of Directors.Threshold responsibility for identifying,quantifying and miti-gating risks is ass

281、igned to our individual businesses.We employ proprietary analytic models to allocate capital to our financing activities,to identify the primary sources of risk and to measure the amount of risk we will take for each product line.This approach allows us to develop early signals that monitor changes

282、in risk affecting portfolio performance and actively manage the portfolio.Other corporate functions such as Controllership,Financial Planning and Analysis,Treasury,Legal and our Corporate Audit Staff support business-level risk management.Businesses that,for example,hedge financial risk with derivat

283、ive financial instruments must do so using our centrally managed Treasury function,pro-viding assurance that the business strategy complies with our corporate policies and achieves economies of scale.We review risks periodically with business-level risk managers,senior man-agement and our Board of D

284、irectors.Dedicated risk professionals across the businesses include underwriters,portfolio managers,collectors,environmental and engineering specialists,and specialized asset managers who evaluate leased asset residuals and remarket off-lease equipment.The senior risk officers have,on average,over 2

285、5 years of experience.We manage a variety of risks including liquidity,credit,market and government and regulatory risks.?Liquidity risk is the risk of being unable to accommodate lia-bility maturities,fund asset growth and meet contractual obligations through access to funding at reasonable market

286、rates.Additional information about our liquidity and how we manage this risk can be found in the Financial Resources and Liquidity section and in Notes 18 and 29.?Credit risk is the risk of financial loss arising from a customer or counterparty failure to meet its contractual obligations.We face cre

287、dit risk in our investing,lending and leasing activities and derivative financial instruments activities(see the Financial Resources and Liquidity and Critical Accounting Estimates sections and Notes 1,9,12,13,29 and 31).managements di scussi on and anal ysi s ge 2008 annual report 25The Australia/N

288、ew Zealand mortgages are generally prime credit,and 94%of the portfolio is covered by private mortgage insurance for the full amount of the mortgage,which is customary in this market.The French mortgage portfolio is generally prime credit,and 29%is insured for mortgage loans greater than 80%LTV(for

289、the mortgage balance in excess of 80%).Segment OperationsOur five segments are focused on the broad markets they serve:Energy Infrastructure,Technology Infrastructure,NBC Universal,Capital Finance and Consumer&Industrial.In addition to pro-viding information on segments in their entirety,we have als

290、o provided supplemental information for certain businesses within the segments for greater clarity.Segment profit is determined based on internal performance measures used by the Chief Executive Officer to assess the performance of each business in a given period.In connection with that assessment,t

291、he Chief Executive Officer may exclude matters such as charges for restructuring;rationalization and other similar expenses;in-process research and development and certain other acquisition-related charges and balances;technology and product development costs;certain gains and losses from dispositio

292、ns;and litigation settlements or other charges,respon-sibility for which preceded the current management team.Segment profit always excludes the effects of principal pension plans,results reported as discontinued operations and accounting changes.Segment profit excludes or includes interest and othe

293、r financial charges and income taxes according to how a particular segments management is measured excluded in determining segment profit,which we sometimes refer to as“operating profit,”for Energy Infrastructure,Technology Infrastructure,NBC Universal and Consumer&Industrial;included in determining

294、 segment profit,which we sometimes refer to as“net earnings,”for Capital Finance.We have reclassified certain prior-period amounts to conform to the current periods presentation.For additional information about our segments,see Note 27.The commercial real estate business consists of a real estate in

295、vestment portfolio,a real estate lending portfolio,and a single tenant financing portfolio.The real estate investment and lending portfolios are global and consist of approximately 8,000 individual properties in 2,600 cities in 31 countries with an average property investment of under$10 million.?Ou

296、r real estate investment portfolio includes approximately 3,200 properties located in 900 cities and 22 countries,with 71%of this portfolio outside the U.S.,primarily located in Europe,the U.K.,Asia,Canada and Mexico,across a wide variety of property types including office,industrial/warehouse,and m

297、ultifamily.?Our real estate lending portfolio is secured by approximately 4,800 properties in 1,900 cities and 25 countries,with 44%of the assets securing this portfolio located outside the U.S.,across a wide variety of property types including office,multi-family and hotel.?The single tenant financ

298、ing portfolio has approximately 4,200 properties in 1,360 cities in the U.S.and Canada,and an average loan size under$3 million.The U.S.consumer portfolio includes private-label credit card and sales financing for over 56 million accounts.The portfolio includes customers across the U.S.and no metrop

299、olitan statistical area accounts for more than 4%of the portfolio.The average credit line for the private-label portfolio is$600.The non-U.S.portfolio accounts for 80%of all consumer risk activities and includes consumer mortgages,auto loans,personal loans and credit card financing in 43 countries.W

300、estern Europe,the U.K.,Eastern Europe and Australia/New Zealand are the primary non-U.S.markets.Mortgages represent 43%of the total consumer portfolio.The average loan-to-value(LTV)at origination of the total global mortgage portfolio is approximately 74%.Western Europe,Australia and New Zealand,Ire

301、land and the U.K.account for approximately 80%of the mortgage book.GE employees underwrite all mortgages and originate to hold all mortgages on book.We exited the U.S.mortgage business in 2007.The U.K.mortgage business tightened underwriting criteria throughout 2008 and reduced volume by 54%in respo

302、nse to the weakening home price environment in the U.K.Since mid-2006,the first mortgage loans originated in the U.K.that were greater than 80%LTV are covered by private mortgage insurance for the mortgage balance in excess of 80%.Insured mortgages account for approximately 73%of the portfolio above

303、 80%LTV at origination.managements di scussi on and anal ysi s26 ge 2008 annual reportSummary of Operating Segments General Electric Company and consolidated affiliates(In millions)2008 2007 2006 2005 2004REVENUES Energy Infrastructure$38,571$30,698$25,221$21,921$19,841 Technology Infrastructure 46,

304、316 42,801 37,687 33,873 30,142 NBC Universal 16,969 15,416 16,188 14,689 12,886 Capital Finance 67,008 66,301 56,378 49,071 43,750 Consumer&Industrial 11,737 12,663 13,202 13,040 12,408 Total segment revenues 180,601 167,879 148,676 132,594 119,027Corporate items and eliminations 1,914 4,609 2,892

305、3,668 4,787CONSOLIDATED REVENUES$182,515$172,488$151,568$136,262$123,814SEGMENT PROFIT Energy Infrastructure$6,080$4,817$3,518$3,222$3,100 Technology Infrastructure 8,152 7,883 7,308 6,188 5,412 NBC Universal 3,131 3,107 2,919 3,092 2,558 Capital Finance 8,632 12,243 10,397 8,414 6,593 Consumer&Indu

306、strial 365 1,034 970 732 601 Total segment profit 26,360 29,084 25,112 21,648 18,264Corporate items and eliminations (2,691)(1,840)(1,548)(372)165GE interest and other financial charges (2,153)(1,993)(1,668)(1,319)(901)GE provision for income taxes (3,427)(2,794)(2,552)(2,678)(1,937)Earnings from co

307、ntinuing operations 18,089 22,457 19,344 17,279 15,591Earnings(loss)from discontinued operations,net of taxes (679)(249)1,398(559)1,631CONSOLIDATED NET EARNINGS$17,410$22,208$20,742$16,720$17,222See accompanying notes to consolidated financial statements.managements di scussi on and anal ysi s ge 20

308、08 annual report 27TECHNOLOGY INFRASTRUCTURE(In millions)2008 2007 2006REVENUES$46,316$42,801$37,687SEGMENT PROFIT$8,152$7,883$7,308(In millions)2008 2007 2006REVENUES Aviation$19,239$16,819$13,017 Enterprise Solutions 4,710 4,462 3,951 Healthcare 17,392 16,997 16,560 Transportation 5,016 4,523 4,15

309、9SEGMENT PROFIT Aviation$3,684$3,222$2,802 Enterprise Solutions 691 697 620 Healthcare 2,851 3,056 3,142 Transportation 962 936 774Technology Infrastructure revenues rose 8%,or$3.5 billion,in 2008 on higher volume($3.0 billion),the effects of the weaker U.S.dollar($0.3 billion)and higher prices($0.2

310、 billion).The increase in volume reflected the effects of acquisitions and increased sales of military and commercial engines and services at Aviation;increased sales in the international diagnostic imaging,clinical systems and life sciences businesses of Healthcare;increased equipment sales at Tran

311、sportation;and increases at Sensing and Inspection Technologies and Digital Energy at Enterprise Solutions.The effects of the weaker U.S.dollar were primarily at Healthcare and Enterprise Solutions.Higher prices were primarily at Aviation and Transportation,partially offset by lower prices at Health

312、care.Segment profit rose 3%to$8.2 billion in 2008,compared with$7.9 billion in 2007,as the effects of productivity($0.5 billion),higher volume($0.4 billion)and higher prices($0.2 billion)more than offset the effects of higher material and other costs($0.9 billion).The effects of productivity were pr

313、imarily at Healthcare and Aviation.Volume increases were primarily at Aviation and Transportation.The increase in material costs was primarily at Aviation and Transportation,partially offset by a decrease at Healthcare.Labor and other costs increased across all businesses of the segment.Technology I

314、nfrastructure revenues rose 14%,or$5.1 billion,in 2007 on higher volume($4.6 billion)and the effects of the weaker U.S.dollar($0.6 billion),partially offset by lower prices($0.1 billion).The increase in volume reflected the effects of acquisitions and increased sales of commercial engines and servic

315、es at Aviation;increased sales in the international diag-nostic imaging,clinical systems and life sciences businesses of Healthcare;primarily the effects of acquisitions at Enterprise Solutions;and increased sales of equipment and services at Transportation.The effects of the weaker U.S.dollar were

316、primarily at Healthcare and Enterprise Solutions.ENERGY INFRASTRUCTURE(In millions)2008 2007 2006REVENUES$38,571$30,698$25,221SEGMENT PROFIT$6,080$4,817$3,518(In millions)2008 2007 2006REVENUES Energy$29,309$22,456$19,406 Oil&Gas 7,417 6,849 4,340SEGMENT PROFIT Energy$4,880$3,835$2,918 Oil&Gas 1,127

317、 860 548Energy Infrastructure revenues rose 26%,or$7.9 billion,in 2008 on higher volume($6.0 billion),higher prices($1.4 billion)and the effects of the weaker U.S.dollar($0.5 billion).The increase in volume reflected increased sales of thermal and wind equipment at Energy,and the effects of acquisit

318、ions and increased sales of services at Oil&Gas.The increase in price was primarily at Energy,while the effects of the weaker U.S.dollar were primarily at Energy and Oil&Gas.Segment profit rose 26%to$6.1 billion in 2008,compared with$4.8 billion in 2007,as higher prices($1.4 billion),higher volume($

319、1.0 billion)and the effects of the weaker U.S.dollar($0.1 billion)more than offset the effects of higher material and other costs($0.7 billion)and lower productivity($0.5 billion).Volume and material and other costs increased across all businesses of the segment.The effects of productivity were prim

320、arily at Energy.Energy Infrastructure revenues rose 22%,or$5.5 billion,in 2007 on higher volume($4.0 billion),higher prices($0.8 billion)and the effects of the weaker U.S.dollar($0.7 billion).The increase in volume reflected increased sales of thermal and wind equip-ment at Energy,and the effects of

321、 acquisitions and increased sales of equipment and services at Oil&Gas.The increase in price was primarily at Energy,while the effects of the weaker U.S.dollar were primarily at Oil&Gas and Energy.Segment profit rose 37%to$4.8 billion in 2007,compared with$3.5 billion in 2006,as higher prices($0.8 b

322、illion),higher volume($0.7 billion)and productivity($0.1 billion)more than off-set the effects of higher material and other costs($0.4 billion).The increase in volume primarily related to Energy and Oil&Gas.Energy Infrastructure orders were$43.2 billion in 2008,up from$36.9 billion in 2007.The$32.5

323、billion total backlog at year-end 2008 comprised unfilled product orders of$23.0 billion(of which 75%was scheduled for delivery in 2009)and product services orders of$9.5 billion scheduled for 2009 delivery.Comparable December 31,2007,total backlog was$29.3 billion,of which$21.0 billion was for unfi

324、lled product orders and$8.3 billion,for product services orders.See Corporate Items and Eliminations for a discussion of items not allocated to this segment.managements di scussi on and anal ysi s28 ge 2008 annual reportCAPITAL FINANCE(In millions)2008 2007 2006REVENUES$67,008$66,301$56,378SEGMENT P

325、ROFIT$8,632$12,243$10,397December 31(In millions)2008 2007TOTAL ASSETS$572,903$583,965(In millions)2008 2007 2006REVENUES Commercial Lending and Leasing(CLL)$26,742$27,267$25,833 GE Money 25,012 24,769 19,508 Real Estate 6,646 7,021 5,020 Energy Financial Services 3,707 2,405 1,664 GE Commercial Avi

326、ation Services(GECAS)4,901 4,839 4,353SEGMENT PROFIT CLL$1,805$3,801$3,503 GE Money 3,664 4,269 3,231 Real Estate 1,144 2,285 1,841 Energy Financial Services 825 677 648 GECAS 1,194 1,211 1,174December 31(In millions)2008 2007TOTAL ASSETS CLL$232,486$229,608 GE Money 183,617 209,178 Real Estate 85,2

327、66 79,285 Energy Financial Services 22,079 18,705 GECAS 49,455 47,189Capital Finance 2008 revenues increased by 1%,and net earnings decreased 29%,compared with 2007.Revenues in 2008 and 2007 included$4.4 billion and$0.5 billion from acquisitions,respectively,and in 2008 were benefited by$0.1 billion

328、 as a result of dispositions.Revenues in 2008 also decreased$3.3 billion as a result of organic revenue declines($4.5 billion),partially offset by the weaker U.S.dollar($1.2 billion).Net earnings decreased by$3.6 billion in 2008,resulting from core declines($3.5 billion),including an increase of$1.9

329、 billion in the provision for losses on financing receivables,lower investment income($0.6 billion)and lower securitization income($0.4 billion),offset by acquisitions($0.5 billion),the weaker U.S.dollar($0.3 billion)and dispositions($0.1 billion).Net earnings included mark-to-market losses and impa

330、irments($1.4 billion),partially offset by increased tax benefits from lower-taxed earnings from global operations($0.7 billion)and Genpact mark-to-market gains($0.2 billion).Segment profit rose 8%to$7.9 billion in 2007,compared with$7.3 billion in 2006,as higher volume($0.8 billion),productivity($0.

331、4 billion)and higher sales of minority interests in engine programs($0.1 billion)more than offset the effects of higher material and other costs($0.7 billion)and lower prices($0.1 billion).The increase in volume primarily related to Aviation,Healthcare and Enterprise Solutions.The effects of product

332、ivity were primarily at Healthcare and Transportation.The increase in material costs was primarily at Aviation,partially offset by a decrease at Healthcare,and labor and other costs increased across all busi-nesses of the segment.Technology Infrastructure orders were$47.2 billion in 2008,down from$4

333、8.7 billion in 2007.The$37.6 billion total backlog at year-end 2008 comprised unfilled product orders of$28.4 billion(of which 48%was scheduled for delivery in 2009)and product services orders of$9.2 billion scheduled for 2009 delivery.Comparable December 31,2007,total backlog was$35.5 billion,of which$27.5 billion was for unfilled product orders and$8.0 billion,for product services orders.See Cor