How General Electric Makes Billions

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How General Electric Makes Billions

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Historically, GE Earns Billions in Profit Each Year In 2014, it made over $15.2 billion!

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Eight Ways to Profit With seven industrial segments and a multifaceted financial services business, GE has eight major avenues to profit.

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Seven Industrial Segments Accounted for 84% of Adjusted Operating Earnings in Q2 Power & Water Oil & Gas Energy Management Aviation Healthcare Transportation Appliances & Lighting

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Power & Water Power generation Industrial Government Primary Customers: Wind, oil, gas, diesel, nuclear, and water GE 9HA gas turbine. Source: GE Sources for Power Generation:

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Oil & Gas Drilling Completion Production and oil field operations Transportation Pipelines Power generation to the petrochemical industry Serving All Segments of the Oil and Gas Industry Source: GE 85% of the world’s offshore oil rigs use GE’s oil and gas products.

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Energy Management Oil and gas Marine Data centers Metals and mining Delivering, Managing, Converting, and Optimizing Electrical Power Source: GE Industries Served Operates in over 150 countries worldwide

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Aviation Commercial and military customers Largest industrial segment by profit in Q2 Upcoming LEAP jet engine has been one of GE’s most successful product launches ever Aircraft engines, components, and critical systems Source: GE

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Healthcare Hospitals Medical facilities Pharmaceutical Companies Biotechnology companies Academia Medical Imaging, Patient Monitoring, Drug Discovery, and Biopharmaceutical Manufacturing Source: GE Primary Customers

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Transportation Railroads Marine Drilling and mining GE’s Tier 4 locomotive (pictured) is the only locomotive on the market that meets EPA’s highest emission standard. Locomotives, Mining Vehicles, and Stationary Diesel Engines Source: GE Industries Served

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Appliances & Lighting Highly competitive marketplace Managing costs is crucial to remain competitive Appliances unit to be sold to Electrolux for $3.3 billion, subject to regulatory review For Consumer and Industrial Uses Source: GE

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Q2 Industrial Segments by Revenue Source: GE

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Q2 Industrial Segments by Profit Source: GE

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GE Capital: The Eighth Profit Center Undergoing a Massive Restructuring GE is exiting the traditional financial services business. It’s selling off any part of GE Capital that doesn’t support its industrial businesses. In 2015, GE expects to sell off $100 billion of GE Capital assets.

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GE Capital Exit Goals “Create a simpler, more valuable industrial company” – CEO Jeff Immelt Reduces financial oversight and risk of financial shocks By 2018, GE wants 90% of its earnings to come from industrial activities.

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The Road to Simplicity Source: GE

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The Bigger Picture GE’s mission is to move, power, build, and cure the world. The company aims to capitalize on global opportunities that fulfill this mission Aligning the company and its mission is crucial to its future success.

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