Immelt’s strategy of resetting priorities
and the company’s core focus seems to be
paying off for GE. Though its full-year earnings have not yet returned to pre-recession
levels, they are headed in the right direction
after a crippling drop in 2009. Net earnings
climbed 8. 5 percent in 2010 to $12.2 billion,
and basic earnings per share rose 5 percent
to $1.06, according to GE’s 2010 annual report. Total revenue, however, fell 3. 3 percent
to $150.2 billion.
Immelt attributes the company’s growth
last year to the spate of tough decisions he
made during the global financial crisis. The
investments the company made in its financial division, for example, helped GE
Capital Services increase its net earnings in
2010 by 123 percent to $3.3 billion. The various resets that have occurred over the last
three years—the mergers, the portfolio exits,
the investments, and the product introductions—all have helped Immelt achieve his
vision of transforming GE into a more
streamlined and focused technology infrastructure and financial services company.
Total 2010 revenue rose in two of GE’s
five operating segments—NBC Universal
and Home & Business Solutions. The NBC
Universal segment generated $17 billion in
revenue last year, a 9. 5 percent increase
compared with 2009, while Home & Business Solutions earned $8.64 billion for the
company, a 2.4 percent increase compared
with its 2009 totals. Revenue fell in the Energy Infrastructure segment ( 7. 7 percent to
$37.5 billion), the Technology Infrastructure
division (1.7 percent to $37.8 billion) and
GE Capital ( 5. 4 percent to $47 billion).
GE Healthcare was the only division in
the Technology Infrastructure segment to
report an upswing in both revenue and
profit last year. The division posted total
revenue of $16.9 billion, a 5. 5 percent increase compared with its 2009 total of $16
billion. Investments and new product introductions contributed to a 13.2 percent
rise in profit to $2.7 billion, according to the
2010 annual report. The solid performance
of the healthcare division, however, could
not prevent an overall profit loss in the
Technology Infrastructure segment—
company data shows that profits fell 7 percent
last year to $6.3 billion.
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