ML20049J888
| ML20049J888 | |
| Person / Time | |
|---|---|
| Site: | Vallecitos Nuclear Center, 05000000, Vallecitos |
| Issue date: | 02/26/1982 |
| From: | Burlingame J, Hood E, Welch J GENERAL ELECTRIC CO. |
| To: | |
| Shared Package | |
| ML20049J879 | List: |
| References | |
| NUDOCS 8203290188 | |
| Download: ML20049J888 (58) | |
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Fin nci:1 highlights l
1981 1980 4 Increase 4 Increase iDollar amounts in millions; per-share amounts in dollars)
Amount from 1980 Amount from 1979 For the year Sales
$27,240 97c
$24,959 11 %
Net earnings 1,652 9
1,514 7
At year end Total capital invested
$11,524 10 %
$10,447 127c Share ow ners' equity 9,128 11 8,200 11 Per share Net earnings
$ 7.26 9%
$ 6.65 7%
Dividends declared 3.15 7
2.95 7
l 1981 1980 1979 Measurements Operating margin as a percent to sales 9.07c 9.07c 9.5%
Earnings as a percent to:
Sales 6.1 6.1 6.3 Average share ow ners' equity 19.I 19.5 20.2 Average total capital invested 17.4 17.3 17.6 Borrowings as a percent to total capital 19.4 20.0 19.5 1981 Revenues by Segment 1981 Net Earnings by Segment Technical systems a 14 %
67c Services and materials a 9
23 Power systems a 21 N --.
13 Industrial prmlucts a 17
"'A 14 Consumer products a 23 18 Natura' resources a
6 17 Aircraft engine a 10 9
Additional information on industry segments is presented on pages 22-28 and 49-50.
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is desigiled to SCI \\ C las % Cll lil the tiltllre l'Irst. and niost Cf Itical, w as fir < >f)/r /4 nlll< >nl/le On April I,1981, John E Melch, Jr.,
trenteri became ( hairman and ( hief inaking the hest possible his hetueen our managers aHd Esecutise onicer of General Electric the husinew Challenges NeCond w et e fn irtt< >/i, * />rl< >ntle s upon the retirement of Reginald 11.
Jones. Edward E. IloM, Jr., tieft) and Channeling 1tinds into high-grow th oppoitunities iii i
John E liurlingame are Vice Chair.
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hoth our new and old husinewes Ihird u ere f"<>erei"I men and Esecutise onicers and, with k
Inte sl"Irn/ s enhaHCine the technical stieneths that
\\1r. Melch, make up the Corporate Ewatis e onice.
Illlist lindellie olli drl\\ C lor u orldW Ide Inaikel leadership Aild tollFth u.is <llllllli/IUill >< nllIt"l/H e
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lilate sCittlig deNipnCd to hililg tillt thC hCst in ('l; people i
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on growth opportunities and to deal with problem busi-deavors - support that is impossible without a healthy nesses. These are different but equally important man-corporate balance sheet.
agement challenges, and we are conunitted to reward suc-A second basic concept is excellence. This means reaf-cessful execution in both environments. This focus on the firming and enhancing the Company's tradition for quality selection and reward of people will be uppermost in your goods and quality services in an increasingly skeptical Corporate Executive Office priorities.
and quality-conscious age. And it means excellence in people - calling for the best in all of us - in some cases Portfolio repositioning takes two forms: strengthening being even better than we thought possible, our core businesses and developing new, fast-growth The third concept we describe as ownership - the call businesses. We are revitalizing our cash-generating core for GE employees to assume full responsibility for the businesses by pointing their products and services toward decisions they make on behalf of you and the Company. It changing market directions and dimensions.
means moving more decision-making power to operations With our core businesses serving as solid, income-pro-
- to managers w ho know their markets best.
ducing platforms, our major focus is on developing strong We intend to make reality, excellence and ownership positions in the more vital sectors of the world economy:
the basis for a pervasive operational atmosphere in which engineered materials, information services, financial people will dare to try new things, where their own crea-services, construction services, medical systems and nat.
tivity and drive will determine how far and how fast they ural resources. The challenge to the managers and their move. Whether in revitalized core businesses, or in the entire organizations in these high-growth businesses is newer growth businesses, the result will be an organiza-
"how big and how fast?"
tion more high-spirited, more adaptable and more agile than companies a fraction of our size.
Program investments increasingly have gone toward en-This decentralized entrepreneurial energy will be hancing our computer soitware and electronics technol-aligned and augmented by the very considerable central ogy. This will enable us to serve, for example, the emerg-strengths of General Electric - not justfinancial(a very ing megamarket of factory automation - the so-called strong balance sheet), but also technical (a research labo-
" factory of the future." We have made the long-term ratory that is a model of excellence worldwide), and commitments to achieve decisive leadership in this market inunan (a manpower development system acknowledged by applying state-of-the-art technologies in areas where to be among the very best)- all bonded further by the GE experience is second to none.
unifying power of the GE monogram - our trademark and most enduring asset.
As for attitudinal positioning, there are three basic con-ccpts we are emphasizing as part of the GE culture.
The first is reality. A sure grasp of marketplace reali-ties and a clear understanding of corporate social respon-sibilities are essential in today's environment. Social ex-John E Welch, Jr.
pectations rightfully remain high, yet business faces Chairman and
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intensilled world competition and more rapid shifts in market structures. In this environment, a company must
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Corporate social responsibility in the '80s begins with John E Burlingame Edward E. Hood, Jr.
a healthy company, derived from satist"ine customers Vice Chairman and Vice Chairman and with quality products and services. 'didvide competi-E'"""" UUi"'
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tiveness leads tojobs and job securi ad the ability to support effectively social, educational and cultural en-February 2fi. N2 3
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Going for fast growth
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in a slow-growth world neral Electric has set its sights on fast growth in a c...
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- ]j some of the newer, more vital arenas of the world
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GE diversity provides continuous market contact with m '
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needs, or new markets created by new enabling technolo-gies. Within these arenas of exceptional growth, GE's objective is to attain unassailable leadership in its targeted for GE's engineered mate-markets, adding fresh growth to its core business strength, rials business, scientists csto tud a N3mer Bringing about the ' factory of the future'
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3 molecular structure in The urgent challence of U.S. reindustrialization presents order 80lud eits Pr Perties.
General Electric with significant market opportunities for R
ummmmmmmmmmmmmmmmmmmm its wide range of sophisticated products and services.
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Large portions of U.S. productive facilities are now craft engine plant use ad.
obsolete. World competition is forcing American industry sanced computer systems to replace its outdated facilities with advanced manufac-cNnti ems ri r r turing equipment and processes.
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tion on an engine s The industrial automation market is growing at well Performance, over 20'k per year. General Electric during 1981 launched major efforts to provide the advanced automa-tion systems needed to modernize U.S. industry. Using its own factories as laboratories for the development of new concepts, the Company plans to be a leader in equipping the " factory of the future."
Such factories will use computer graphics for design
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and planning. Final designs will be transferred directly to f'f controls on the machine tools that manufacture product parts.
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On the factory floor, programmable controls will team with numerical controls, lasers and industrial robots to build product parts, and solid-state inspection cameras linked to computers will assure quality.
Computers will link work stations, stock rooms, mar-keting activities, transportation and otherjob functions needed to get higher-quality products to customers faster, while lowering manufacturers' inventories significantly.
An important step toward the " factory of the future" was the acquisition of Calma Company, a leading supplier of computer-aided design and manufacturing equipment (CAD CAN1) based in California. To supplement this ca-pability, Genera! Electric acquired a 489c' interest in the Structural Dynamics Research Corporation, a computer-aided engineering company located in Ohio.
Computer-aided engineering enables engineers to sim-ulate product performance before prototypes are built. It T
streamlines product development and slashes costs.
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ment, GE also entered the rapidly growing industrial ro-e J
bot business. It presently is assembling and selling robots
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A roadblock to automation until recently has been the inability of machines to "see." But last year, the Company introduced its latest artificial vision equipment, j
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" sight" to robots and other devices.
General Electric is also designing a computerized elec-tronic " data highway" that will eventually link islands of automation in the factories of the future.
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Putting all of these elements of the " factory of the future" together is a challenge for which General Electric Pressing tow ard a "rac-tory of the future," GE is is ideally suited. The Company's many diversified facto-Er" Il s raci i ics,in-ries provide a unique experience base; its large sales and
'""l service network, m backing up these new technologies, cluding areas w here pro-grammable and numeri-can give General Electric a leadership position in this cal controls are built.
emerging megamarket of the '80s.
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innovsting in infcrmati:n and financial ssrvices Rapid growth in services was highlighted by the 1981 performance of General Electric Information Ser ices Company. Sophisticated information services are in de-mand, and GE is meeting customers' changing require-ments by offering both packaged and custom services.
Today's emphasis is on software solutions, to direct the ever-increasing intelligence of computers. In 1981, GE enhanced its software capabilities by acquiring special-ized entrepreneurial companies, namely LTI Consulting Services Corp., Software International Com., Banking Systems Inc., and Energy Enterprises of Denver, Inc.,
which serve fast-growing market niches. GE is selling solutions to problems, not just raw computer power.
Agility and responsiveness also characterize GE's affil-iate, General Electric Credit Corporation (GECC).
The high cost of owning things - a major customer pmblem with interest rates so high - has become one q
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GECC had record earnings again in 1981. Total carn-T 4
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ing assets grew to more than $11 billion. The original cost
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$1.9 billion. Responding to opportunities afforded by the
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actively in tax leases involving customers who have un-
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q grams, including those in the metals, utility, airline and railroad industries. These leases will result in improved
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cash flow and net earnings over a long period.
Ices or GE Credit are as-sisting U.S. reindustriali.
Creating high technology materials griIdingb"n'a"c*hines n
Engineered materials - including many new products automoth e engine plant
"'*h-developed in GE laboratories - are rapidly growing sources of sales and profit.
SUP rahr 15 The Company's materials business is in the process of kr pd doubling its manufacturing capacity-- expanding a mate-are revolutionizing oli and rials plant in the Netherlands, building a new synthetic gas drilling and coal min-diamond plant in Ireland, and developing a materials Mep te er p,
,r ts plant in Japan and a multimaterials plant in Alabama, the that can drili seseral times latter representing an estimated investment of $1.5 billion.
faster than other hits in Today, General Electric chemical, plastics and metal-lurgical products increasingly are being specified and used in many different world markets.
The aatomotive industry provides a $1-billion-plus market opportunity. Already, GE plastics, silicones and j
circuit-board materials can be found in more than 100 automobile applications around the world.
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Growing transportation markets-Transportation needs of both commercial and military customers are furnishing General Electric with other op-portunities for significant grow th.
The U.S. Administration's current emphasis on national i
security will require advanced military aircraft engines.
GEjet engines have been selected for the 11 111 bomber program and the advanced-technology bomber program.
i Although airline deregulation, high fuel costs and the decline in rate of growth in revenue passenger miles have I
affected the short-term demand for large commercial en-E
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The increased mining of coal is spurring demand for another Company transportation system, the GE electric wheels on huge haulage vehicles used in surface mining.
At its h>comotive facilities in Erie, Pa., General its ruit system,(;E is sup.
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l Electric in 1981 began a major program to increase pro-Its Permsylvania plant, ductivity. A center is also being built to improve the qual-and is also sending com-ity of service and maintenance training that the Company p< ment sets to a Mnican National Railway s facility Erovides its customers.
In Aguascalientes uhere nnai assembly takes place.
hloreover, the Company's sophisticated manuf.acturms
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facilities in the aircraft engine and locomotive businesses l ' *;
are providing valuable msights for General Electne s
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Bright, abstract images
" factory of the future" thrust, both internally and v.,.
prmluced in GE photo-externdy.
clastic lah in Ohio proside telltale signs of how sar-For example, experience gained at the Company's air-ious aircrart. engine com-craft engine plants in such technology as computer-aided t*
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Develsping worldwide energy thrizcns General Electric. in one of its oldest busmesses, had an actise y ear in world energy markets The Company receised an order valued at over $500 million f rom a Japanese utility for the w orld's largest
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and most adsanced STAG hteam and gas) combined-cycle power station General Electric is providing seven STAG sy stems each to twin 1.000-megaw att power yk plants. and is furnishing additional services.
Esen with the present slow growth of the U.S. utility market. General Electric during the year received orders t
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strong utilits demand for Throughou' the u orld. GE power systems businesses maintenance and fuci sers -
otter customers creative enerev opions. Cogeneration is i$nNs" aiir i$in.
one example. Rising fuel costs. uncertain energy supplies cant new business for Gl'.
and consers ation efforts have heightened its appeal. Both electricity and steam can be produced with significantly On its was to help suppl.s less tuel than if they were produced separately.
eicetric power for a lai-Use of GE mechanical drive turbines is also on the wan utilits. this giant GI-steam turk >ine-generator maase. Em loved in such industries as oil retinine and stator was shipped from a fertih/er and methanol manufacturing, these turbines seu Jersc3 port in iwi.
are popular otterings in many world markets. This year, they will be supplemented with a line of advanced centrif ugal compressors.
In Taiu an during 1981, the world's first BWR 6 nu-clear plant. w hich includes General Electric's most ad-vanced nuclear steam supply system. began operation.
Just os er lis e years elapsed in building the Kuosheng plant. an ens iable schedule by today 's typical nuclear construction standards.
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Cost competitiveness in coking coal is a major strength of General Electric's largest consolidated affiliate, Utah In-ternational Inc. Utah is also an important world supplier of other minerals, and conducts an aggressive mining pro-gram using advanced recovery techniques.
Coking coal, used primarily by the steel industry, is Utah's largest business. Based in Australia, Utah coking coal operations enjoyed strong 1981 sales despite reduced worldwide steel production.
Utah's steam coal operations, primarily based in New Mexico's Four Corners area, produce coal at the point of
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use, supplying power plants adjacent to the mines. In the
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subsidiary, are expanding. In 1981, Ladd increased both F
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Serving a discerning consumer Faced with present-day concerns about the economy, con-sumers are buying less, but " buying smarter." In the consumer products area, General Electric is focusing on premium-quality offerings, represented by 1981 audio.
housewares and major appliance products that incorporate j
the new electromes.
,_f Quality and productivity improvements will help improve p afit margins for these businesses. GE con-p sumer-product plants are using CAD / CAM and other ad-n vanced-factory techniques in many operations. In 1981, a modernization program at the dishwasher plant in Ken-av orrering innovatise tucky was begun, replacing the facility's electromechani-cimsumer products such cal equipment with " factory of the future" components, as the microprocessor-controtted Model 2500 dishwasher, GE is stasing Improving health care abreast or people s desires An outstanding example of this Company's " bringing and trying to make their
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good things to life" while protecting life itself is its medi-cal systems business. Today, GE offers top-quality diag-nostic equipment in every major imaging field.
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'i{l*",Ry',),'j'tp[";g Cr 9800 scanner as well as the digital Fluoricon'5 3000 scanner introduced in 1911.
x-ray system. These products enable many patients to avoid exploratory surgery.
4 -
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Beccming a wcrid-class ccmpetitor A common charac~;ristic of GE's diverse initiatives in the 1980s will be a world view. liigher growth expectations in foreign markets encourage this perspective, and world-class competition in U.S. markets will serve to enforce it.
A combination of innovation and cost leadership is the essence of the General Electric worldwide thrust. Innova-tion is demonstrated by the Company's export of a wide and expanding array of sophisticated products and serv-ices. Cost leadership is typilied by Utah International, a j
leading low-cost supplier of coking coal to world markets.
GE diversity allows it the flexibility to compete world-wide in diverse ways, adopting whatever country and re-gional strategy is appropriate. Exporting is one way by which GE markets leading-edge products abroad. An-other way is to produce them overseas, including high-performance plastics in the Netherlands and Japan.
Still another way is through broad-based operations in
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a California-based semiconductor manufacturer.
The Company also continued construction of a Micro-in Gimiar3 and appil-t electronics Center in North Carolina w here highly sophis.
ance plant iets workers ticated devices will be designed and produced. Ground
'jth n > nit ir $"e a
aI-was broken for an electronic automation center in Char-ity or parts moving past lottesville, Va., and in 1982, this center will provide a them on a conse3or.
showcase for the GE " factory of the future" thrust.
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.. 4 To help assure the quality 1
is completing an $85 m.llion program to expand its facili-
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ordishwashers manufac-ties by nearly 507c. It will provide scientists and engineers
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Translating the Company's technologies into the highest-
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Ily inspiring its peop/c to be "better than the best," GE sees fast growth for itself in a slow-growth world, while helping to counter today's keener foreign competition and f
buttress the U.S. economy.
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17
l QiE people, organization to support growth strategies M
5 uccess for the new business thrusts planned for ended September 30,1981, showed the number of women S General Electric in the '80s depends upon highly managers up 167c, from I,i 16 to 1,298, and minority motivated people and an organizational structure managers increasing 67c, from 1,258 to 1,336. Women that encourages their creative interaction.
professionals increased 97c, from 5,102 to 5,569, and inihe first major change in the Sector organization minority professionals were up 37c, from 3,558 to 3,676.
structure since it was established in 1977, a strategic re-Atore than 12,000 women and 6,000 minorities were pro-alignment was made September 1. It provides opportuni-moted in 1981. Overall, women account for 289c of GE ties for new teams of managers to generate new growth employment and minorities,127c.
for the Company in areas such as electronics and th "ast-growing services businesses.
Wages and benefits for GE employees were improved in As detailed on pages 22-28, the realignments include:
1981. Pay increases for most hourly and graded salary
- A new Technical Systems Sector, coordinating indus-employees totaled 65 cents an hour. Benefits were im-trial electronics operations; components that design and proved, since most benefits in GE are directly tied to pay produce integrated circuits; and microelectronics-inten-levels. h1ajor union contracts covering most hourly em-sive businesses, including medical systems, mobile com-playees expire June 27,1982. The Company is already munications and aerospace businesses.
working toward the constructive negotiation of new
- A new Services and hiaterials Sector, combining three agreements.
high-growth businesses: General Electric Credit Corpora-tion, Information Services Division and the Engineered Employee development and training continued to hlaterials Group. The Sector also includes General receive strong emphasis. The Company expanded its re-Electric Venture Capital Corporation.
cruiting and university relations programs for attracting
- A restructured Power Systems Sector, complementing collegc graduates and experienced personnel with "high-its heavy equipment businesses with an enlarged services tech" skills. Alore than 1,000 employees participated in strategy through formation of the Construction and Engi-apprentice programs at 30 Company locations. Approxi-neering Services Group linking GE engineering and mately 700 engineers participated in the GE Advanced equipment services businesses with the Company's inter-Course in Engineering, a master's degree program con-national construction operations.
ducted jointly with I8 universities. Nearly 5,000 employ-
- A realigned Industrial Products Sector, bringing to-ces participated in training courses at the GE h1anagement gether under a new management team the Company 's Development Institute in Crotonville, N.Y., and there businesses in contractor equipment, motors, transporta-were another 24,500 enrollees in courses distributed from tion systems and the General Electric Supply Company.
Crotonville. Hundreds of locally developed programs
- A repositioned Aircraft Engme Group, gaining in-were conducted by GE components throughout the world.
creased top management attention and continuity through reporting directly to Vice Chair man Hood, much of Contributions by the Company and the General Electric whose GE career has been concentrated on developing Foundation to domestic philanthropic organizations to-this high-technology business.
taled approximately $17 million. Included in the Foun-dation's contributions were 53.5 million in support of GE domestic employment, including consolidated affili-health, welfare and youth programs through grants to 255 ates, averaged 289,000 during 1981, compared with United Way organizations.
285.000 in 1980.
Continued progress in equal employment opportunities for women and minorities was demonstrated. Analysis of domestic employment of General Electric for the year 18
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Audit Committee Finance Committee
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Rahard T. Ilaker. Chairman Edmund W. Lattleheld.
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l.am rense E. l'ouraker Chairman i
Getwge N1 low John E Welth, Jr..
Gertrude G Stahelson vice Chairman I
lxwn T. Preston Charles D. Dakey. Jr.
l llenry 11. IIenley. Jr.
Gilbert II. scribner. Jr.
Walter H. Wristori i
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Walter B.Wriston Ralph Lazarus Gilbert H. Scribner, Jr.
Edmund W. Littlefield l
Chairman of the Board and Chairman of the Board and Chairman of the Hoard and Chairman of the I secutne Dirntor, Citwarp and Citibank.
Direttiv. Ii derated Dep.irt nent I)irestiv. Stribner & Co.
Costimittee and Director.
N A. New Wik. N Y. (lu62p stores. Inc. Cincmnati, Ohio real estate and insurarwe.
Ltah internationallne.
(19621 Chwago Ill 11962) san t ranowo, Cahf (1968) l 4
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Certrude C. Michelson Lewis T. Preston George M. Low Richard T. Baker sennv Vnc Preudent, iWternal Chairman of the Hoard and Preudent. Renwlaer Consultant to I.rnst &
Aflaits. R 11 Ntac) & Co.
Direstor, J. P Morgan & Co Polytechnw Institute.1roy.
Whmney. pubbe accoimtants, hw, retailers New Wrk. N Y.
Inwrporated and Ntorgan N Y. (1977i Clescland Ohiot1977)
I19761 Guaranty Trust Compariy, New Wrk. N Y. t1976 General Electric's Board of Directors during 1981 Director, did not stand for re-election.
lost the valued services of four Directors and one Samuel R. Pierce, Jr., resigned after seven years new Director was elected, leaving Board member-of distinguished service on the Board of Directors to serve ship at 17.
the government as U.S. Secretary of Housing and Urban Reginald 11. Jones, a l>irector for 10 years, left the Development.
Board upon his retirement in April as Chairman and Chm Lawrence E. Fouraker accepted the Board's invitation Executive Officer. A tribute to Mr. Jones is on the inside to stand for election at the 1981 Annual Meeting. A pro-back cover of this Report.
fessor of business administration at the Harvard Graduate John E. Lawrence did not stand for re-election under School of Business Administration Dr. Fouraker served the Board's age rule. Mr. Lawrence served on your as the school's dean from 1970 to 1980, has taught busi-Company's Board for some 23 years through three GE ness and government relations, and headed the school's administrations. Ilis wise counsel and tireless enthusiasm international business area.
l made him an especially effective contributor to the Com-In addition to 11 regular meetings in 1981, Directors l
pany's success.
participated in the meetings of the seven committees, J. Paul Austin, who provided unique counsel to the listed above, which aid the Board:
Board during his 16 years of valuable service as a The Audit Committee, made up entirely of Directors 20
l Management Developraent Nominating Committee Operations Committee Public Responsibilities Technology and Science and Compensation Charles D Dn key, Jr.,
llenty L. Ihllman. Chairman Committee Committee l
Committee Chair man John l' Wels h. Jr,
it nry 18 llenley. Jr., Chairman Geivyc M. Iow. Chairman Ralph I af arus. Chairman llenty 11 llenicy. Jr.
Vn e Chairman John I flurimpame.
14tward L. liins!. Jr..
f Silas s Catinart Ralph iaratus James ti llosweli n Vice Chairman Yn e Chairman llenry 11 llenley. fr.
14tmund W lattleheld sd.n S Cathcart Rnhard T. Ilaker James G. Ilmwell 11 llenty I. llillman
(;corre hf low Gertrude G. sin helum Law rence I;. I ouraker Charles D. Da key. Jr i
Walter 11. Wr nton Gertrude G Mahelum I ew n T. Preston llenty L. Ihllman llenry L. Ihllman Gilbert ll. scribner. Jr.
Ralph 12iarus lijmund W. Litticheld Gertrude G. Mahelum l
- p. N '
7 l
..o, W/:
James C. Boswell11 Chatles D. Dickey, Jr.
Henry L. Hillman Henry H. Henley, Jr.
$llas S. Cathcart Chan man of she lloard.
Chanman of the lloard Prcudent and Ibrettiv. Ihe Chanman of the lloard. Chief Chairman of the li.urd arni (h cf lac 6 uine t ef taer aint araj lhret tiv. scos: Paper lhilman Company, dnerutied I accuine Ottwer and Direthv.
Director. filimin Tool bib Dites tre. J G f 4.nmell Company. Ptula&lphu. Pa operatn ns and mscument.
Clucit. Ibbmly A Co, Irw..
Inc, dncrutied produs h.
f Comp.mb arnung aml (1972:
Pithburgh. Pa (19726 nunufatturmit and retaihng of Chnago. Ill (1972)
I related huunewes, apparel. New bek. N Y j
l.os Angeles. Cahl i1971 e i1972)
I 8
h, O
l o
m I
John F. Burlingame Edward E. Hood, Jr.
John F. Welch, Jr.
Lawrence E. Foursker
\\ ac Chauman of the ItosJ.
Vn e Chanman of the lloed.
Chairman of the floard.
Profeswr of Huunew 1 sesuine Ottner and Direstor.
I se6utne Oltner and Director.
Cturf 1.necutne Of fwer and Adminntrahon,llanard Gemiali Ic(trn Company General I.lettrn Company.
Director, General I.lcs tnc Unncruty Graduate sshmd of j
l an hcid. Conn a lwus l air heid, Conn il940s Companb l anticid.
Iluunew Admmntration.
Conn (1940)
Hoston. Mau l1981)
I from outside the Company, met four times. Its reviews meetings; including twojointly, in which they assessed i
included those of activities of both the Independent Public the business performance and technologies of GE nuclear l
Accountants and the Corporate Audit Staff.
and medical systems businesses. In another meeting, the The Finance Committee, meeting four times, reviewed Operations Committee reviewed changes in national de-the Company's financial position, and examined the oper-fense policies and their impact on GE operations.
ations of the General Electric Credit Corporation and the The Public Responsibilitics Committee devoted its two Company's investmer.ts in foreign operations.
meetings to reviews of the Company's environmental pro-The Afanagement Development and Compensation tection programs, GE performance as an equal opportu-Committee, in its 10 meetings, conducted reviews of nity employer, and other corporate responsibilities.
changes in management as well as in the exempt salary The quarterly dividend was increased by the Board in structure and executive compensation programs.
May from 75 cents to 80 cents per share.
The Nominating Committee, meeting on three occa-The listing of Directors from left to right is in order of sions, concentrated on selecting new Directors and on their Board seniority, with the year in which they were restructuring memberships of the Board Committees.
first elected shown in parentheses.
The Operations Committee and the l'echnology and Science Committcc held, respectively, five and two
)
21 i
Summ rydf w rldwida rccults byindustry hee pages 49 So for further actrh Revenuesin 1981 were 229 ahead of 1980. Lower Technical earnings reflected enxluct development and acquisition Systems O
costs related to GE's increased focus on industrial elec-tronics, advanced microelectronics and robotics. Results also include the one time gain on sale of shares of Appli-James A.Balier nesuine vise erniaeni and W
con Inc., in accordance with a commitment to the U.S.
IItnYE1$nscoor
)
Federal Trade Commission concerning the Calma acquisi-Indusmat cicuronin tion, and nonrecurring charges related to the Calma and
^c ra'rd' c intersil acquisitions. Calma and Intersil operations were Medical sy stems n,3ac mmmum
,ns profitable, excluding acquisition-related costs.
Aduns ed mimieleurom" Acquisition-related investments totaled $334 million.
Exclusive of acquisitions, capital expenditures reached 1981 Revenues 1981 Earnings
$255 million a 559 increase over 1980. In addition, program expenses increased 379 to $200 million, pri-f marily to support GE's factory automation strategy.
j Industrial electronics had higher sales in 1981. Earn-
/
j
-f ings were down, principally because of significant ex-J (1
j pe~litures on automated systems and products. These re-k,1 sults include industrial electronics systems, electronic k(,
~ 4(""g/
Robotics and other sophisticated technologies are also components, and Calma Company and Intersil, Inc.
included.
on n nimnu 19si 19so 1979 i978 1977 Aeropee sain and em ninp were well ahead of a year Resenun 53.979 53.252 52.761 52,443 52.251 ago. These high-technology products melude aircraft Net carnmn 9x ios li3 ion 84 ilicht controls, radar and sonar systems, communication gg roduct leadersh..ip in today's chang.mg markets satellite systems and other defense-related products.
requires a major acceleration of high-technology hiedical systems sales and earnings also were well resources, particularly those that are electromes-ahead of 1980. Substantially higher sales of GE computed based. By 1990, most of the world s products and proc-tomography systems were the major factor in the excep-esses will be impacted by this electromes revolution. Our tionally strong results. Besides CT products, medical sys-primary mission is to have the best techmcal capabihties tems includes x-rav, ultrasound, and other diacnostic at our disposal to offer the needed electrome components products and services. For the future, progran$ expenses
~
and systems to serve our markets.
have been substantially increased to support digital x-ray
" Although all Sector businesses are oriented to elec-.
and nuclear magnetic resonance.
tronics technologies, the world s need for productivity is Sales of mobile communications equipment were flat, the driver of our mcreased program spending, observes and lower physical volume reduced earnings. Products Executive %ce President James A. Baker. "This Sector and related services include mobile radio and data com-has been assigned the Company's leadership role munication equipment sold to a variety of commercial m factory automation, and 1981 acquisitions and new customers and government agencies.
product introductions are responsive to this role. Al-By unifying electronics technology and allocating sub-though mereased program spending is required short-stantial resources to strenethen GE technical capabilities, range, the long-range opportunity is enormous.,
w e are positioning to become a major factor in the emerg-ing electronic components and systems market.
22
In engineered materials, sales were substantially ahead Snrvices and of last year with a major increase in earnings. Despite the D erialS economic downturn, these businesses continued to pene-trate and expand the spectrum of applications in world-I.awrence A.Bossidy v
wide markets by utilizing innovative products. The broad-nuurne vae Presiacni ana ening of the application base in these businesses is sutor bauene
~
f exemplified by new engineering plastic products and sili-
'"S*$n',j,U,','2"'"'
cone scalants for automotive, business machines and con-
~
iniorrn.inon servwcs struction markets; rechargeable batteries to protect mi-N$.Ilr'N'$'re "4"'"""
croelectronic memories; high-technology circuit-board cynai cormrenon materials;long-life diamond-based Stratapax drilling 8
components for the energy markets; and high-productivity 1981 Covenues 1981 Earnings Carboloy" tungsten carbide for metalcutting.
~
To meet growing demand, major capacity expansions were completed at several existing U.3. manufacturing d
facilities;in Europe, the materials plant in the Netherlands d
is also being expanded. Major new facilities under devel-1 opment include a multimaterials plant in Alabama, a dia-i mond factory in Ireland, and a materials plant in Japan.
"d$$l#y The Alabama center is designed for expansion of engi-W neered-materials capacity in the decade ahead, on inaiionu 1981 i9so 1979 i978 1977 Sales and earnings ofinformation services continued to Revenues
- 52.593 52.230 51.991 si.561 51.337 increase dramatically in 1981. Four acquisitions were D*nUu$"$carnin ocnerai nuine creds f ron, made during the year to implement the strategy of provid-i it cernoration 129 its 90 77 67 ing full computer services rather than just raw computing gg wo of the brightest growth areas of today's econ-power. A major current focus is the development of pack-omy are financial and information services and engi-aged and custom software, distributed data processing nee' red materials. To maintain market leadership, and emuulting services. A heavy demand for these offer-General Electric is introducing many innovative types of ings exists as industry worldwide attempts to accelerate information and financial services. And our scientists and the search for solutions to business problems.
market development specialists are in close pursuit of new GECC's net earnings, exclusive of an income support applications of plastics, silicones and superabrasive prod-payment, increased 127c, despite high interest rates that ucts to meet industry's changing demands " states Execu. produced a 457c increase in interest expense. (See page tive Vice President Lawrence A. Ilossidy.
46 for condensed GECC financial statements.) GECC's
" General Electric Venture Capital Corporation has net earning assets increased 267c to $11.3 billion. Strong been aligned with the technological and services thrust of growth in leasing activities was the highlight of 1981 other Sector businesses. The afliliate experienced its most operations, including expansion into new markets such as profitable year in 1981 and continues to seek equity posi-trucks, telecommunications and machine tools. During tions in companies with emerging technologies and high.
1981, $1.9 billion of original-cost leased equipment was growth prospects."
added to GECC's portfolio, the second year of billion-dollar-plus growth. The aggregate original cost ofleased Earnings were up sharply from the previous year. Res e-equipment in GECC's portfolio is $7.9 billion. GECC nue increases were due primarily to higher physical vol.
reacted quickly and resourcefully to new markets created
~
by the Economic Recovery Tax Act of 1981.
ume of sales uorldwide.
23
volume for a number of products. Better productivity was Pcwer a major racior in orrsetiing cost intiation and weak Systems S
"'arke's-q a, Sales and earnings of steam turbine-generators and re-Herman R. Hill
- 7.,
lated equipment were well above those of 1980. Better
=
Iaetuine vne Pres Jent.ind results from steam turbine operations were partly offset p
by lower sales and a sharp drop in gas turbine profitability scoor iweiuine "fuNn$'s"aSJNncycneraen y
as worldwide utility and industrial deliveries of gas tur-conuruoion and enoncenng bines slowed. The 1981 year-end orders backlog of sSN.'r. incien. transn,rnien
$2.7 billion for steam turbine-generators was the same suiiear produas and sen n es as the previous year. About $1.2 billion of the 1981 backlog ($1.3 billion in 1980) was scheduled for ship-itS1 Revenues 1981 Earnings inbMK Construction and engineering services' sales were up in 1981 on good performances by international construction and installation and service engineering operations. Earn-ings were about the same as the previous year, principally due to business development costs associated with in-creasing emphasis on environmental services.
Power delivery and transformer businesses' sales and earnings were up slightly for the year. Ilowever, markets on nunionsi 19u 19so iv79 197x iv77 for these products continue to be soft because of slow Resenues 55.9x2 5%.x15 55.124 54.x4h 54.3x2 U.S. electrical load growth and worldwide industry over-Net earninn 224 201 183 15n ox capacity. Continued emphasis on improving cost effec-gg ur energy market goes beyond the requirements tiveness and productivity is cuential in these businesses.
of U.S. electric utilities. Responding to changing The nuclear power business was modestly profitable in world energy needs, GE is tapping new markets, 1981, reflecting a healthy fuel and services business and and has reorganized its energy-services business. A key rigorous attention to cost control. The total GE backlog of 19141 change brings together our extensive worldwide orders for all types of nuclear products and services was construction, installation and repair service capabilities.
$3.6 billion at the end of 1981, compared with $5.5 bil-
"This widening energy focus," Executive Vice Presi-lion at the end of 1980, principally because of deletions of dent flerman R. Ilill continues, "provides new opportu.
projects no longer expected to go into production. About nities for the broad range of GE products and services for 447c of the 1981 backlog (357c at the end of 1980) was generating, transmitting and distributing electricity. By scheduled for completion or delivery five years or more uniting our services businesses, we are able to package into the future. Some fuel orders in the GE backlog in-service offerings for better results. This services focus, clude reprocessing, plutonium fabrication and waste-along with the importance of foreign and export markets, disposal services. It is highly uncertain whether such is targeted to strengthen GE profitability despite the con-services can be provided in view of current U.S. govern-tinuing low rate of U.S. electrical load growth."
ment policies. GE does not anticipate recovery of the domestic nuclear steam supply systems market in the fore-Good earnings improvements were achieved in 1981 on sceable future. Fuel and services needs of U.S. and for-l modest revenue growth, which reflected lower shipment eign utilities offer ongoing opportunities.
l 24
Total revenues and earnings improved despite the low industrial level or u.S. resideniiai and industrial construction.
M"'" ""d rel"'ed rod"c'"""8e fm"""'"" ""*'s P
Products and controls used in home appliances to large ac and de 7
niotors and generators used to power industry around the Loui. v. Tomn.tu world. The revitalizing of U.S. industry and the demand necuine vac Preuaeni for more energy-eflicient products provide a growing
.na scitor f actuine inau ir roduta sctior opportunity for motors. GE research and development are conirator cquipinent being applied to motors used with advanced types of elec-N,"Ur$s"i OsY7y conipany tronic motor controls and power-conditioning equipment.
i Sales and earnings for motors and related products were 1Csan.v.nu..
tes1r rning.
up somewhat from 1980.
Contractor equipment includes components and assem-blies that protect and control electrical systems for build-ings and industrial uses, wiring devices, wire and cable 1
and programmable lighting controls. Changes are occur-ring at an increasing rate as electronics are introduced into these products and as the competition becomes global.
Although markets for contractor equipment in 1981 were lower due to the downturn in residential and industrial
""Y "
on nmimno 198i 19so 1979 1978 1977 N-Resenues 54.871 54.cm s4.375 53.897 53.744 Transportation systems products include diesel-electric Net earnine 242 225 171 i$i 14:
and electric locomotives as well as drives and drive sys-gg urrent needs of industrial customers to revitalize pg,. off-highway vehicles, transit vehicles and oil-their factories and modernire their rail transporta-well drilling rigs. U[S. markets for locomotives and off-tion llects afford major market opportunities for liighway vehicles in the '80s are expected to be favorably General Electric industrial products.
affected by. increased use of coal for energy. Worldw.ide The GE, path to market leadersh..ip m this segment, sum-demand for o.l-well drilling drives is also expected to be i
is ice President Lou. V. Tomasetti,is marizes Executive V.
strong in the '80s, though somewhat lower than the high through innovation.
- We are currently supplying millions demand in 1981. Transportation systems earnings in 1981 of customeis with advanced electrical and electromechan-were ahead of 1980 on somewhat lower sales.
ical products and services to improve productivity, con-General Electric Supply Company (GESCO), a nation-serve energy, increase energy suppl,es, and provide efh-wide distribution component, provides electrical products i
cient transportation.
to customers in the construction, industrial, utility and
" And we are broadening our role in serving U.S. and commercial markets. GESCO distribution services were worldwide markets for these vital products.,
improved significantly during 1981 with installation of a real-time order entry system that has the capability to search all of its inventory stocking locations for product availability to respond to customer needs.
25
1 i
difficult economic conditions and a sustained level of C:nsumer investment in product and manufacturing technology.
Products
^'"Jor "PP.i""'""le'."woHghdy ahead gf IE on l
lower unit shipments as mdustry volume dechned for the P.us w. van orden y
third successive year, reflecting a 35-year low in residen-necume vwe prendent ana
~
tial construction. Lower unit volume and the continuing scuor becume cost-price squeeze contributed to lower earnings. GE C""['l,"'N',['""'
maintained its overall leadership position through intro-p Ivons rn*as duction ofinnovative products such as the blodel 2500
["l',n'a'j '"" '"'" P" *"'
electronic dishwasher with advanced electronic features, Tciemon retenen including the capability of self-diagnostics. GE's exten-nroaaasnn, ana adi'""""
sive in-home product service network was supplemented 1C01 Revenues 1981 Earnings in 1981 with introduction of the Quick FixT System for consumers w ho prefer to service their GE appliances.
f~
Lighting products had higher sales and earnings led by c
technically advanced and energy-efficient products, such U
Dl as Watt-hliser" fluorescents and Lucalox8 high intensity 4
7
,)
discharge lamps. New products include the Optimiser flu-1(
_i orescent lighting system, which uses 3F/c less energy
/
than standard fluorescents. GE improved its position as a i
p.
4
/
major supplier of quartz products to semiconductor manu.
facturers. Consumer advertismg and promotion were ex-on rni%no 19xi 19sn 1979 197x 1977 panded to strengthen preference for the GE brand.
$'ei'c"Engs N N$ Nx' NI N.
Ilousewares and audio products gained in sales over 1980, but overall earnings were down due to planned j
gg o be a market leader in the 1980s, we intend to expenditures in world product procrams. Housewares ex-l produce high-quality products that serve people's perienced strong sales increases in the GE-pioneered plas-changing needs and make their lives better. Our tic Light 'N Easy n irons. Introduction ofinnovative radio, commitment to quality continues to be illustrated in the successful tape and citizens' band products enabled audio products campaign.{We bring good things to life' advertising to achieve record sales and earnings.
Executive Vice President Paul W. Van Orden also notes Air conditioning products realized substantial earnings that "GE offers one of the world's broadest lines of con-improvement on increased sales during 1981. Continuing sumer electrical products and related services. Among the strength of the domestic replacement market and strong economic forces that affect this industry segment are the export sales more than offset the depressed residential level of U.S. housing construction and fluctuations in con-construction market. GE began shipments of highly effi-I sumer disposable income and interest rates. Ily emphasiz-cient, electronically controlled two-speed Weathertron 8 heat pumps in 1981.
ing consumer-relevant quality offerings and factory pro-ductivity improvements. GE is planning profitable Sales of television and video products were higher in 1981, although earnines declined due to increased costs growth."
and expenditures for future growth.
Ilroadcasting and cablevision businesses acain had Higher 1981 revenues were achieved on essentially flat record sales and earnings. Substantial increases in news volume, despite the recession which severely affected all markets. Earnings were below the prior year, retlecting coverage, local programming, and other community services were implemented in GE television stations.
26
At year-end 1981, the total mineral sales value of f
Utah's backlog was 57.2 billion, of which $6.0 billion N tural Rasources 1* e#;
"awheduled for shipment after 1982. All contracts making up this backlog are payable in U.S. dollars. For add tional statistical information about coking coal, Alexander M. Wilson 8
steam coal and copper, see page 51.
chairman of the Hoard and y[
Coking coal mined in Queensland, Australia, contin-chicr iaccuin e ottker
E,"d'n',"[li Jy ues to be Utah's largest source of revenues and earnings.
g improved selling prices and higher production, partly sicem mal
' I,'p*".d ""' 8
because of the lessened impact of Australian work stop-c pages such as those that hurt 1980's performance, were other mmerah major reasons for the good improvement in results. Cok-1981 Cavenues 1981 Earnings ing coal is sold principally to Japanese and European er fy3 steel producers.
s' T Sales and earnings of steam coal also improved in g.
.M 1
1981. Utah's largest steam coal operations are located in (j -
9
[
]
New Mexico. Utah also has major steam coal reserves at
. 1 q
y several other U.S. locations and, during the year, began P
/
u y
the development of the first of several new mines in Ken-K e
tucky and West Virginia.
O Oil and natural gas operations, primarily in the U.S.
on miiiiono i9si 19s0 1979 1978 1977 and Canada, are conducted by Utah's subsidiary, Ladd Revenues 51.722 51.374 Si.260 51.032 5965 Petroleum Corporation, which again had higher sales and Net earnmn 2s4 224 20s MO 196
- Carnings, ff aw materials are essential to world economic Cyclically depressed world copper prices resulted in grow th. With a careful eye to market opportuni.
substantially lower sales and earnings from the main cop-ties, we are scouring the globe, conducting exten.
per resource, Island Copper Mine, in British Columbia, sive exploration programs for coal, ferrous and nonfer.
Canada. Longer range, further exploration work is under rous metals, precious metals and petroleum."
way to determine the potential of ajoint-venture find of a Commenting on the fast-paced, entrepreneurial nature copper deposit in Chile.
of such programs is Utah International Chairman Alex.
Othe< operations include uranium and iron ore mining, ander M. Wilson. Utah is the primary General Electric land development, and ocean shipping mainly supportive producer and marketer of natural resources. "Once we of Utah's marketing needs. Brazil-based iron ore opera-decide to develop a coal deposit, ore body or oil reserve, tions of Samarco sustained a loss in 1981 after breaking we apply leading-edge technologies to ensure maximum even the year before. This project, in which Utah has 49%
recovery."
of the voting stock and guarantees debt, is experiencing Utah International is a leading supplier of natural re.
weak markets and increasing costs. The nonconsolidated sources worldwide.
uranium mining affiliate (80% of whose common stock is expected to be sold shortly-see note iI to financial R; venues and net earnines in 1981 were substantially statements) achieved good earnings in 1981 following more than in any previous year. About 779 of 1981 reve.
two years oflosses. Higher selling prices, following com-nues and 52% of net earnings came 1 >m outside the U.S.
pletion of deliveries under earlier relatively low-price contracts, produced the improvement.
27
a f -
,3-4 TotalInternational Aircraft Engine Operations 1981 Revenues 1981 Earnings Gobert R. Frederick Inecutne vice Prendent and
- '.- 7 sector IteLutn e International settor
?
s Q
.n i
Total international operations
~
^
- all segments Ian iin nulhonsi 19xI 19x0 1979 1978 1977 Resenues out4de the U S.
510.190 59.597 57.x40 57.014 56.13g f in nulhons) 19x1 1980 1979 197N 1977 Net earn ngs 574 639 526 4s6 415 Resenues 52.950 52.660 52.190 51.591 51.317 Ial see pace 50 for geographie seement mformation.
Net earnines 149 141 97 82 78 gg he International Sector manages foreign multiprod-gg eneral Electrie jet engines are in worldwide use in uct-line af filiates, provides marketing and financi i commercial, executive and military aircraft and services for GE exports by U.S. businesses, main-naval ships, and as sources for industrial power.
tains a GE presence in worldwide locations, and provides Export markets are important, product development an integrating role for the many domestic GE components cycles are long, and product quality and efficiency are w hich directly manage their offshore operations," Execu-critical," Senior Vice President Brian H. Rowe states.
tive Vice President Robert R. Frederick observes.
"While competition in the soft commercial market is intense, GE continues to build its reputation for highly Fcr GEin total, about 37% of 1981 revenues and 359 of reliab!e and efficient engines that have now been selected net earnings originated from international sources.
to pow er widebo6y airplanes for over 70 airlines."
nI[ rat \\In and Revenues and earnings were up in 1981 on higher physi-n 56
)
- 55. t 55.
us esports to esternalcustomers 3.681 3.781 2.772 cal volume of military aircraft engines as commercial Revenues out4de the U.S.
510.190 59.597 57.840 shipments fell below the record 1980 level. Cost reduc-tion actions were taken in 1981 to offset the slowdown in Foreign operations include, for example, much of Utah InternationalInc.; engineered materials businesses off-deliveries of long-range commercial aircraft.
shore facilities serving foreign markets; and multiproduct-The GE military engine business had a very successful line affiliates in such countries as Canada, Mexico and year with the increased shipment of production engines Brazil. Losses continued in Spain, largely attributable to for the U.S. Navy F-18 jet fighter and U.S. Army Black Hawk helicopter". Both of these programs are expected to over-capacity in that country's electrical manufacturing have a long production life. GE engines were also se-industry. Negotiations are being conducted with the Span-ish government and labor unions to mitigate the continu-lected for both new USAF bomber programs, as well as for aircraft serving the defense needs of other free-world ing problem.
nations. Sales of replacement parts and services are an Unfilled U.S. export orders were $4.8 billion at De-important part of the jet encine business. Re-engining of cember 31,1981. Total GE exports, led by aircraft en-existing aircraft with more' modern, energy-efficient gines, exceeded direct imports by $3.3 billion, again power plants is of increasing importance.
making a positive contribution to the U.S. trade balance.
28
Management Corporate Executive Officers John F. Welch, Jr.
John F. Burlingame Edward E. Hood, Jr.
Chairman of the Itoard and Vice Chairman of the lloard and VKe Chairman of the floard and Chief 13ccutne Off Ner 1.tet utne O!!her 13ccutn e Otticer 5tandley H. Hoch Jacques A. Robinson Corperate inecuine Othee Corp > rate l3ccutne Othee Vwe Preudent VKe President s
=,>
6 '
.a.
I f
y yl
.;p.
?
8
+
.h y
I
's l
s..
.. [.y
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a'
.d f rank P 1%Ie Ibmel J l mL Robert 11 Iwne Themlore P 14Vmo
'r
?, '
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, gg.
A.% ;
y
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, q.;-
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L,
_.t L eonarJ C Wct. fr Nhcv A Shhinertwk Thomas 0 Thorsen Senicr Corporate Officers Corporate Staff Officers Frank P. Doyle Leonard C. Maier, Jr.
Thomas R. Casey, M.D.
Roland W.Schmitt Semor Vwe Preudent Senior Vne Preudent VP & Company Aledical Director VP - Corporate Research and Corporate Relations Corporate Prahwtion and James J.Costello clopment D nielJ. Fink "PC""E
'" *C' S
VP & Compirolier Leonard Vickers Senior Vwe Preudent Walter A.Schlotterbeck James R. Donnalley, Jr.
VP-Corporate Starketing (orporate Planmng Senior Vwe Preudent VP-Corporate f.nsironmental Programs and Commumcations and Dnelopment General ( ounwl and Secretary Iwues Protect R.Howard Annin,Jr.
Robert B. Kurtz Thomas 0.Thorsen VP - Northeastern Regional Relations Dale F. Frey Senior Vice Preudent Semor Vwe President VP & Treasurer Kristian H.Christiansen C ir irate Producinity and I mans e VP-Southeastern Regional Relations Theodore P. LeVino
- Corporate Engineermg William B. Frogue Senior Vwe Preudent Marion S. Kellogg A P - Southw estern Regional Relations liecutne Alanpower VP-Corporate Consulting Senices Harry M. Lawson Raymond F. Letts VP - Western Regional Relations VP - Corporate Operatmg Sen ices William C.Lester Edward H. Malone VP-East Central Regional Relations VP - Trust insestments lverl. Petersen Terence E.McClary VP-Central Regional Relations VP - Corporate 1 mancial Cecil S. Semple Admmistration VP - Corporate Customer Relations John B. McKitterick VP - Corporate Des clopment Phillips S. Peter VP - Corporate Gos ernment Relations Arthur V. Puccini VP - Corporate Emplo3 ce Relations 29
Technical Systems Services & Materials James A. Baker Lawrence A.Bossidy I.secutne Vnc Preudent and f actutne Vue Preudent and Sector I.secuine Set tor f act utn e Technwat S) stems settor S :r s wes and Materials Sector Donald K. Grierson Y.
John W. Stanger
'j]
Preudent & Chief Esecutne Otticer
~
Senior S P & Group laet utne Indusirial i let tronio Group
,J
'd General Electric Credit Corporation
~
l',g 4
P IGI CC8 Robert Benders Preudent Norman P. Blake i
Calma rompans Esecutise VP 4
y'.-
/'
Orion L. Hoch h
. ~:'
=
GLCC Financing Operations Bernard P. Long
'4 PicuJent & Chief I Accuene Ottner
.# g <j - - + -
VP & General Manager - GLCC y',
Interul. Inc.
~ '
Consumer Finanemg Dnision Erwin M. Moeritz George H F arnwonh VP & General Managcr Chd'ics R Caren Gary C. Wendt IndustrialI.lectronas 5 sienn VP & General Manager - GECC 3
Donald S. Beilman Commercial and Industrial on n,on
,.'~2 4
Fmancing Daision Gregory J.Liemandt VP & General Manager Adunced MNroelettromo Operations
.- y James E. Dykes VP & General Manager Information Senices VP & General Manager 4-Division GEISCO
( ;'
General Liectric Mwniclettronio s
w Center Walter L Robb
'[
i[
.. 1 VP A General Manager
't
Medical Sotenn Operations IbnalJ K (..ncrwn John W Nianger Francis J. Schilling General Manager George B. Farnsworth Medwal S stems Pnslus Charles R. Carson 3
Senior VP & Gnnip l.setuine Management Dniuon Nemor VP & Group lNecutne Aennpat e Gniup Robert L Stocking i ngineered Matenals Gniup William A. Anders Gener41 Manager Alastair C. Gowan VP & General Manager Medwal Sy stems Sales and Sen we VP - I ngmeered Materiah Airt raf t Equipment Dn nion Dn nion l~ct hnwal Operanon Thomas 1. Paganelli Donald J. Meyers Glen H. Hiner VP & General Manager VP A General Manager VP A General Manager I lettronw Sy stenn Dniuon Mobile Communa ations Dn nion Plastio Operations Allan J. Rosenberg Donald E. Perry Eugene F. Apple VP & General Manager VP & General Manager VP A General Manager Space Sptenn Dn nion InJustrial Sales Dn nion Spetulty Plastio Dniuon Ladislaus W. Warrecha D. Rex Blanchard VP & General Maruger Chairman of the lloard &
Re-entry Sptenn Dntuon Chict lNecutn e Otticer General I.lettric Pl.ntws 11 V Philip M. Gross General M.mager Nor>l Pnslucts Dn nion John D. Opie VP & General Manager I.csan Pnslucts Dn nion Thomas H. Fitzgerald VP & General Manager
%Iwone Pnslucts Da iuon Robert J. Gerarte VP A General Manager Metallurgwal Dn nion 30
International Power Systems Industrial Products Robert R. Frederick Herman R. Hill Louis V.Tomasetti Esecutne Vice Preudst and I secuin e Vice President and Esecutne Vice President Sector Executne Settor laccurne and Sector lhecutis e International Settor Power Sptems Sector Industrial Pnslucts Sector Wris E.Forsyth
~~
Warren H. Bruggeman
.r..,g.-
- '. ' - ' ' 4.-
'. h" VP & General N1anager
( '..
VP & General Stanager
?
Latin American Operations Nuclear Energy Operations
- <j Rodger E. Farrell (y)e.
VP & General %1anager A. Philip Bray
/'
VP & General stanager i, -7 L
Andean Countries Dnision Nuclear Power Sptems Daision j
John A. Hinds s.
.s Henry E. Stone
.h VP & General Ntanager VP A General Stanager Q.i..
Latm Arnericanllusiness
(
Nuclear Engmeermg Dnision W
Deselopment Dnision
.[+
Bertram Wolfe 4i.
's J. Richard Stonesifer YP A C'C"C'dl SId"dFC' c.corge a cm James P curte>
Chairman of the lloard &
Nuclear Fuel and Senices Dnision Chief Executne Of ticer Donald C. Berkey General Electric do 11rsul S. A.
w, ' Tu.~ "'-/.' 'M VP & General Slanager Paolo Fresco 6
f Energy Sptems and Technology c1 e VP & General Nianager v.
.], L Dn iuon Europe and Africa Operations Ah
' FM.).
Nicholas Boraski Edward C. Bavaria
. V --
VP & General N1anager
. (T[;,.
VP & General Ntan ger Large Transformer Dnision h.'. '.
k.
N1iddle East Africa
- (
5$
Eugene J. Kovarik Ilusiness Deselopment Dnision VP & General Stanager George J. Stathakis 1-iF
,.'f-i.,;-'.7 VP & General Ntanager
~; '
Power Delivery Dnision s
Edward W. Springer International TraJmg Operation %
lohn A. (*rquhart VP & General Stanager
%n W Wdhams Frank D.Kittredge Electric Utility Sales Dn nion VP & General Slanager George B.Cox James P.Curley Far Fat Area Danion Senior VP & Group Esecutne Senior VP & Group Executis e Alton S.Cartwright Turbme Group Contractor Equipment Group Chairman of the lloard &
Richard W. Kinnard William Longstreet Chief Esecutne Officer VP & General Stanager VP & General Slanager Canadi ral i let trie ( ompany 1.arge Steam Turbme. Generator Dntribution Equipment Dnision Dn nion Willizm R. C. Blundell James M. Mcdonald Preudent & ( hief INecutre Officer.
George W. Sarney VP & General N1anager General if anacer Apparatus Dntnbution Sales dh" "
Gas Turbmc D'n nion Dnision George H. Schofield Van W. Williams Robert T. E. Gillespie
\\I UCDC'3I\\Id"dSC' Vice President Senior VP & Group Executise in ustnal and Wine Meam Tu6me Consumer and Construction Stotor Group U"
Pnslucts Dnision. CGE William R. Fenoglio D. Forrest Rankine John A.Urquhart VP & General hlanager Vice President Senior VP & Group thetutisc Component Slotor Daision Apparatus and lieas) Stathinery Construc tion and i ngmeering Sen it es Carij. Schlemmer Dnision. CGl; Group VP & General Slanager Robert T. Bruce Transportation Sprems Operations VP & General % tanager John C. Dwyer Installation and Sen ice General Ntanager I ngineenng Dnision Locomotne N1arketing Division Vittorio Orsi Marion S. Richardson Slanagmg Director General Ntanager S ADF. SADI LNil Construction Locomotise Pns!ucts Disision U C ' d' '"" '
I David M. Engelman Edward F. Roache VP & General Stanager VP - Plannmg integration General Electnc Supply Company Operation Disision Bruce O. Roberts Ralph B.Glotzbach VP & General Nianacer VP-Customer and Industry Apparatus Senice bniuon Relations Operation 31
Censumsr Products Utah Aircraft Engino International Paul W. Van Orden Alemander M. Wilson Lxecutne Vice Preudent and Chairman of the Itoard and Sector I.secutne Chief l'tecutn e Otticer Consumer Pnducts Sector l'tah International Inc.
.. y I.'
.g.,
Roger W. Schipke James T. Curry
. g. 7 '.'.* ? /..j'sy ? -
- %,g 'T/
,b Senner VP & Group l:teturne hnancial VP
/; ': (y
'f 1 y
4..
Id.
Major Applunce Group Ralph j. Long I \\. g' *
- M Richard T. Gratton Senior VP & Manager
..[4:
%I VP & General Manager Mmeral Ltploration and Desclopment 14p; ;
Q"7 i
Management and Marketing Charles K. McArthur
. (%
b.'E Marr Applunte Pnduct Dnision 4,0 3
.c
' $( -
c
.y
~
.$ f Operations Senior VP & Manager f-iiiilip J. Drieci Minmg Dn nion j
wj VP & General Manager - Maior John H. Moore Ralph D Kekhum Appliance Retail Sales Da tuon President - LaJd I\\ troleum Brian 11 Rome William L. Grim Corporatum (a subsidurv of Utahl V P & General Manager Keith G. Wallace Brian H. Rowe Mator Applunse Contrast Sales Semor VP & Manager Semor VP & Group Ltecutise Dn ision Australasia Dnision Aircraft Engine Group
-[.,
John C.Truscott James N. Krebs VP & General Manager VP & General Manager
'.g y
Major Applunce Teshnolog)
Milaary I-:ngine Operations Dn nion Orville R. Bonner
'_~
Jamee F. West VP & General Manager VP-Maior Applunce Group
,,* *' l.
Strategic Plannmg Operatnin
- 7.. '
Marme and Industrial Engine Protects Dnision Roger W khirke William J. Crawford lll VP & General Manager Military Engine Projects Dn-ision alph D. Kepum W. George Krall
.\\ mor \\ I, & Group Ltecutne VP & General Manager
- E,'""P Aircraft Engme Manufacturing Psul L Dawson Dn nion VP & C;cneral Manager Frank E.Pickering Lamp ( ompi nents Da nnin ypg
,y, David O. Gifford Aircraf t Engme Engmeering VP & General Mar ger Da nion International Lightmg Dn nion Harry C. Stonecipher H nry J. Singer VP & General Manager VP & General Manager Comrr.ercial Engme Operations lamp Pnducts Dn nion gg James R. BMe VP & Gencral Manager VP & General Manager
\\irlme Programs Dn nion Air Conditionmg Dn nion g,
y, $
William R. Webber VP & General Manager VP & General Manager Commercial Engine Projects Teles nion Dn nion Dnision Waitsr W.Uilliams VP & General Manager llotaca arcs and Audio Dniuon 32
Financial section Contents Financial review 34 Report of management 38 Report of independent certified public accountants 38 Financial statements 39 j
Sumn.ary of significant accounting policies 42 Notes to financial statements 43 i
Segment information 49 Supplementary data 51 Ten-year summary 52 Other information 54 1
33
F.inancial rev.iaw ammmmmme
~-
T The summary of worldwide results by industry on pages his review supplements the detailed information in the Research and development expense Billions audited financial statements w hich begin on page 39.
no
. company-funded ~
22 through 28 presents additional information about operating 15
. customer.
results, and the 10-year summary of historical information on funded pages 52 and 53 provides a longer-term perspectis e.
gg Consolidated operating results u
Sales and net carnings in 1981 were both up 99 from 1980.
h in 1980, sales and net earnings had been 119 and 79 more.
1977 1978 1979 1980 1981 respectively, than in 1979.
Overall, it is estimated that higher phy sical volume of ship-ments accounted for about one-fourth of the sales increase from Interc3t expense and other financial charges of $401 million 1979 to 1980 and from 1980 to 1981. The effect of volume and in 1981 were up 289 from 1980. This sharp rise retlected the prices on sales increases dif fered markedly in both y ears by extremely high interest rates experienced worldwide during the categories of pnslucts.
year as well as some increase in average levels of foreign and General Electric also derives revenues from a variety of domestic borrowings. Interest expense in 1980 had been 229-
~
operating and nonoperating sources in addition to amounts real. above the previous year, principally due to rate increases and ized from sales of pnxtucts and services. Operating sources of somew hat higher foreign borrow ings.
other income in recent years have included continuing increases
/>rorisionfbr inc<nne rate 3 was $962 million in 1981, com-in earnings from the nonconsolidated tinance aftiliate, General pared with 5958 million in 1980 and 5953 million in 1979.
Electric Credit Corporation, as w ell as earnings from associ.
Note 5 to the financial statements provides details about consol-ated companies and royalty and technical agreements. Non.
idated income tax provisions and GE's effective tax rate.
operating income includes dividends, interest and miscella.
Earningsper share of 57.26 in 1981 were up 9G~ from 1980.
neous items from a number of sources.
Increases in earnings and dividends per share over the last five Operating margin dollars were 99 higher in 1981 than 1980.
years are portrayed in the chart. Dividends declared were $3.15 In 1980, operating margin dollars had increased 59 from 1979.
for 1981, the sixth consecutive year in w hich the rate was As a percent to sales, operating margin held steady at 9.0% in increased. It is GE policy to maintain a reasonable dividend 1981, the same as 1980 w hich was down slightly from 9.59 in rate while at the same time enhancing pnxtuctive capacity and 1979, the most recent full year of relatively stable U.S. and alhicating resources to fast-earnings grow th opportunities.
world economic conditions. Throughout GE, major stress is being given to pnx!uctivity improvement and cost control pro.
Earnings per share Dollars grams aimed at strengthening operating margins. At the same N
. Dividends time, alh> cation of resources to programs targeted at future growth has been and will be continued. Among f uture-oriented 6 00
. Retained for growth expenditures, those for research and development are para-j f.
mount. GE's rising R&D expenditures for the last five years, 4 00 A l
both f rom Company and customer funds, are depicted in the j
i A
v chart at upper right.
2 00
?
u-cC
.t...
1977 1978 1979 1980 1981 34
Property, plant and equipment reflected in plant and equipment expenditures. Total working Funds invested in property, plant and equipment totaled $2.0 capital decreased $221 million ($413 million excluding net lig-billion in 1981. Approximately 80% of these expenditures were uid assets). Among the elements of working capital, customer on projects in the United States. The aggregate of new plant receivables increased $ 162 million (49 ), and net inventories expenditures for the last five years was $7.1 billion. Identifying increased $ 118 million (4r/c) from the end of 1980. The overall real grow th opportunities, providing for technological im-condition of receivables remains good, and inventories are at provements in productive processes, maintaining the adequacy levels consistent with the needs of the businesses.
of existing resources-and selectively allocating available The result ofas3et mana_ccment over a longer term is summa-funds among these objectives - all form a most important part rized in the following table w hich shows principal sources and of the GE strategic planning system. A summary of expendi-uses of funds for the last five years.
tures for the past five years by broad project objective follows.
Sources and uses of funds Ihe years ended (mlhonu December 31. Im Obbctives of plant expenditures-19771981 Prmcipal sources of funds:
Capacity en ansion and Internal-from operations
$10.5 buunewde elopment 40g
[hternal-other equity changes
-long-term debt (net)
(0.3)
Renewat and replacement 229
$102 Pnsluctiuty and efficiency 2uq Principal uses of funds:
Other(mdud ng R&D.
Nnis
]
general f acihties.
\\vorking capital (except net liquid assets)
(0.3 )
utely and enuronment) 189 Change in net liquid awets 5 0.3 Estimated future expenditures to complete projects already From this summary, it can be seen that over the past five approved aggregated $1.0 billion at year-end 1981.
years GE has met its cash needs from internal sources. Long-term debt has been reduced, and there have been no significant Financial condition changes in common stock. Property, plant and equipment ex-Cash and marActable 3ccuritics at year end 1981 totaled $2.5 penditures and dividends used 97% of the funds generated from billion, an increase of $270 million from a year earlier. Short-operations over this period of time.13ecause 60% of these term borrowings increased $78 million during 1981. The net expenditures have been for capacity expansion, business devel-of these changes represented an increase of $192 million in opment, productivity and efficiency improvement, they are ex-GE net liquid assets during the year.
pected to contribute to increasing profits and cash flows in Gli's most important 3ource of funds in 1981 continued to be future years. Even though sales have increased at an average positive inflow s from operations - mainly net earnings plus annual rate of 129 since 1976, working capital, excluding net depreciation, depletion and amortization - which aggregated liquid assets, decreased $0.3 billion. The resulting improve-
$2.6 billion in 1981, up $293 million from 1980.
ment in working capital turnover is due principally to extensise Principal uscs of /98/ funds included outlays for purposes use of the LIFO method of valuing inventories, progress similar to those of recent years: that is, expenditures for prop-erty, plant and equipment ($2,025 million) and dividends for share owners ($715 million). Also, in 1981 the Company ac-quired a number of existing businesses to augment strategic plans for the future. The aggregate amount of funds used for acquisitions in 1981 was $409 million, a portion of which was 35
collections on long term contracts, and to good receivable and major U.S. firms, a composite profile was developed. Among inventory control.
the findings for 1980 wcre:
The wundnen off;D rapital structure continues to be im-After-tax profits in total, w hen adjusted solely for the loss of portant to achieving sustained earnings growth and a good re-purchasing power of the dollar, were only 479 of reported turn on investment. Total capitali/ation of the Company at the after-tax profits.
end of !981 is depicted in the chart beh>w.
After-tax pn> fits on a current-cost basis were only 34% of reported af ter tax profits.
Percent of totai capital e binmns Iwen*r 31. iwi Etfective corporate income tax rates on a real basis were Debt 4hort icrm to vi substantially higher than reported and statutory rates.
.long term 9?;
On a current-cost basis, dividends exceeded profits - some Mmont) mterest of others
!M industries, in ef fect, are liquidating themselves.
The average real rate of return on investment (current-cost ba wasIcw Wan for nine of G induMry groupings, Share ow neri equay 79 ? i
[
and did not exceed 7.59 for any of the groupings.
b These findings confirm and underscore the concerns which k
GE management has been expressing for a number of years
% +v about the impact ofintiation. Despite some apparent moderat-With a low ratio of debt to total capital, adequate credit lines, ing of the rate of U.S. inflation in 19S1,it was still very high by and the highest ratings from debt-rating agencies, Gli's linan.
historical standards. Also, despite government efforts in 1981 cial condiuon is strong and flexible enough to assure the as aila.
to recognize the need for monetary and fiscal restraint as essen-bility of additional funds from external sources to meet any tial to cure inflation, there is every reason to believe that any foreseeable need.
final " cure" will take years of persistent and enlightened poli-cies. The challenge for successful performance by business Orders on hand for future sales managers is to search out and participate in real growth New orders received in 19S I aggregated $30 billion. This was a opportunities.
17% increase from 19S0 and exceeded any previous year. The Financial statements and related information elsew here in backlog of orders on hand at year-end 19S t for all types of this Report are presented using the traditional bases of financial pnxtucts and services was $28.2 billion, compared with S27.4 reporting. Although General Electric's extensive use oflast-in, billion at the end of 19SO. As noted in other sections of this first-out (Lil 0) inventory accounting in the traditional state-Report, some of the orders in the backlog anticipate periods of ments results in largely reflecting current inventory costs in several years between receipt of an order and completion of the operations as reported, those statements still do not fuSy recog-work. l.ong production-cycle contracts ty pically pmvide for nire the ef fects of intlation.
some type of escalation to reflect inflationary cost increases.
The table at the upper right presents supplemental informa-and in certain instances involve some form of collections from tion w hich may be helpful in gauging the effects of changing customers as wor k is in progress. Of course, orders in the prices on GE results for 1981. This table shows two different backlog are subject to deferral or cancellation by customers, w ays of attempting to remove inflationary impacts from finan-though subject in certain cases to cancellation penalties.
cial results as traditionally repor ted. In both " adjusted for" columns, restatements are made to (1) cost of goods sold for the inflation-the challenge persists current cost of replacing inventories, and (2) depreciation for in 1981, the Financial Accoundng Standards lloard (FASID the current cost of plant and equipment. The column headed was able to compile - for the first time - a detailed look at the " general inflation" uses only the Consumer Price Index to effect of inflation on linancial results of major U.S. industrig calculate the restatement, w hile the column headed "eurrent companies. From the details of the 19SO annual reports of S46 costs" uses data more specifically representative of costs in-curred by General Electric.
36
l Supplementary intor nut on I or the ) car subjectivity b involved in the calculations. Trends in these I.f tes t ut t hanging pris es ended Det ember 11.19x I adjusted data user time are at least as important in understand-Ad usied bor(an ing intiationary impacts as are the data for a single y ear. Using i
As rencral current the current-cost method, earnings for the years 1977 through tin milhons, cucpt lwrahare amounto repirted milanon cmh Sales of pndutis and sen kes to t ustomen
$27.240 527.240 527.240 Af ter tax earnings of General Electric Cmt of gondoold 18.94s 19.065 es.03a adjusted for current costs in millions Sellmg. general and adiriinistratiu-g, y
es pense 4.966 4.966 4.9f >6 Depretunon. depletion and amort ranon MM2 1.297 1.294
- """"U Operatmg omts 24.79) 25.32X 25.294 m Current-cost Operatmg marym 2.447 1.912 1.946 750 carnmp in Other intome 614 bl4 614 1977 dollan Interest and other hnant ul t harycs (401) t401)
(401)
$oo I:ar nmp twforc entome tates 2.660 2.125 2.159 l'rmiuon for mcome tases t9621 1962) 1962) 250 Enonty mferest (4(o 13.1) 01)
Net rainmgs
% 1.652
% 1.130 5 1,164 1977 197M 1979 19x0 1981
- ..ninp per share
$ 7.26 5 4 97
$ 5.12 Share ownen' cymty at Dec ember 11 5 9.128 514.076 514.090 The data above are merely illustrative of the effect of infla-taun dollan of aserare 1981 puit hasmp pouct-tion on Gli's results. Much more important are the management Restatements to cost of goods sold are relatively small for actions taken in recognition of the challenges created by infla-Gli because of extensive use of 1.11 O insentory accounting, as tion. l'oremost among these actions is highly selective asset noted presiously. Ilow es er, restatements of depreciation, management, such as:
w hich alhicates plant and equipment costs to operations m er investment in mixiern plant and equipment to increase pro-time, are relatively large because of the Idgh rate ofinflation, ductivity, w hich can directly improve operating results by min-particularly in the last four > cars. This is because traditional imiting cost intlation.
reimrting of depreciation based on original emt does not retlect Selective development of services businesses w hich of fer higher prices for replacement of pnxtuctise capacity of fixed opportunities forluosting pnxtuctivity and which have high assets w hich were purchased a number of years ago. Iloth of value-added potential for contributing to earnings improve-these methods of adjusting for inflation result in lower earn-ment.
ings than traditionally reported.
Investment in assets w hich have inflation-protection charac-1: rom the preceding table, the following relationships can be teristics, such as the residual values inherent in many of Gli derived:
Credit Corporation's leasing activities and the value of Utah International's mineral reserves.
~
cItNYl.19si For supplementary historical information and technical detail cndedI about the ellects of changing prices, see page 51.
Adiusted for As general cunent reported in Hation cosh 1:arninp as a percent of "as rep *:ted" 100 o'i 68 49 70 5'4 i !!cetne tas rate 36 2 45 3 44 6 Netul11 en ) car'cnd sharc ow nen' equity 18.1 80 8.3 Dnidenih as a percent of car mnp 41 3 63 3 61.4 Gli management belies es the " current-cost" method is more representative of Gli's results, but emphasizes that considerable 37 r
Report of management
...~
To Share Owners of General Electric Company The Audit Conunittee of the IMant of Directors, which is
'ihe hnancial statements of General lilectric Company and con-composed solely of Directors from outside the Company, main-solidated athliates are presented on pages 39 through 50 of this tains an ongoing appraisal of the effectiseness of audits and the Annual Report. ~l hese statements base been prepared by man-independence of the public accountants. The Committee meets agement and are in contornuty with generally accepted ac-periodically with the public accountants, management and in-counting prmesp!cs appropriate in the circumstances lhe state-ternal auditors to review the work of each. The public account-ments include amounts that are based on our best estimates and ants have tree access to the Committee, without management judgments. I:inancial inf ormation elsew here in this Annual present, to discuss the results of their audit work and their Report is consistent with that in the financial statements.
opinion, on the adequacy of internal financial controls and the General filectne maintains a strong system of internal linan-quality of financial reporting. The Conunittee also review s the cialcontrols and procedures, supported by a stall of corporate Company \\ accounting policies, internal accounting controls, auditors and supplemented by resident auditors located around and the Annual Report and prosy material.
the world. This system is designed to proside reasonable awur-Management has long recogni/ed its responsibility for con-ance, at appropriate wst, that assets are sateguarded and that ducting the Company's af fairs in an ethical and socially responsi-transactions are executed in accordance w ith management's au.
ble manner. The commitment to this responsibility is reflected in thorization, and are recorded and reported properly.1he sys-key w ritten policy statements cos ering, among other subjects, tem is tune-tested, innovatis e and responsis e to change. Per-potentially conflicting outside businew interests of employees, haps the most important satepuard in this system is the f act that compliance with antitrust law s. and proper conduct of domestic the Company has long emphasized the selection, training and and international business practices. Ongoing educational, deselopment of prof essional financial managers to implement communication and resiew programs are designed to create a and usersee the proper application of its internal controls and strong compliance ensironment and to make it clearly under-the repm tmg ot management \\ stew ardship of corporate awets stood that desiation trom Company policies will not be and maintenance of accounts in conformity with generally ae-tolerated.
cepted accounting principles The independent pubhe accotintants proside an objectis e, independent res iew as to Inallagement's discharge of its respon-y4 sibilities insofar as they ielate to the f airnew of reported operat-ing results and financial condition They obtain and maintain an Senior Wee Prssident Chanman of the Board understanding of Gli accounting and financial policies and con-Iinance and Chief inecuin e Otticer trols, and conduct such tests and related pnicedures as they consider necewary to artise at an opinion on the f airnes of February 26.1982 hnancial statementt Report of independent certified public accountants
-v-
-..,- - - ~ ~ -
,..-- _.._,+,~.-_ _.-_._
To Share Owners and Board of Directors of in our opinion, the aforementioned financial statements General Electric Company present fairly the financial position of General filectric Com-We have examined the statement of linancial position of pany and consolidated attiliates at I)ecember 31,19SI and General lilectric Company and consolidated attiliates as of I)e-19SO, and the results of their operations and the changes in their cember 31,1981 and 1950, and the related statements of earn-financial position for each of the three years in the period ended ings, retained eat nings and changes in financial position f or December 31,19S 1, in conf ormity w ith generally accepted each of the thice > cars in the period ended December 31,1981.
accounting principles applied on a consistent basis.
Our esanunations were made in accordance with generally ac-ceptett auditing standards, and accordingly included such' tests
[ 7/ h r.w d 7/i2 Y g M d of the accounting records and such other auditing pnicedures as Peat. Marwick, Machell & Co.
we considered necewar) in the circumstances 345 Puk Menue.New hk. NX Inl54 February 26.19S2 38
Statement of earnings GeneralI.lectnc Company and wnsohdated attihates lor ihe yem.cndea tiet ember 31 <in mi hono 1981 1980 1979 t
Salas Sales of pralucts and services to customers
$27,240
$24,959
$22,461 Operating Cost of goods sold 18.945 17,751 15,991 costs Selling, general and administrative expense 4,966 4,258 3,716 Depreciation, depletion and amorti/ation 882 707 624 Operating costs (notes I and 2) 24.793 22,716 20,331 Operating margin 2,447 2,243 2,130 Other income (note 3) 614 564 519 Interest and other financial charges (note 4)
(401)
(314)
(258)
Earnings liarnings before income taxes and minority interest 2,660 2,493 2,391 Provision for income taxes (note 5)
(962)
(958)
(953)
Minority interest in carnings of consolidated affiliates (46)
(21)
(29)
Net earnings applicable to common stock
$ 1,652 5 1.514
$ 1,409 liarnings per common share (in dollars)inote 6)
$7.26
$6.65
$6.20 Dividends declared per common share (in dollars 1
$3.15
$2.95
$2.75 Operating margin as a percentage of sales 9.09 9.09 9.59-Net earnings as a percentage of sales 6.19 6.19 6.3rk Statement of retained earnings General l.lettne Company and cornolid.ited attiliates Ior the ycan cnded I)etember 31 iln milhong 1981 19S()
1979 Retained llalance January I
$7.151
$b,307
$5,522 earnings Net earnings 1,652 1,514 1,409 Dividends declared on common stock (715)
(670)
(624) llalance December 31
$8,088
$7,151
$6.307 The information on pages 3x and 42-50 n an micFral part of thew statemenh 39
Statement of financial position General I latr n; Company and conv ehdated athhates At Ikternber 31 (in nulin,no 1981 198f)
Assets Cash (note 7)
$ 2,219
$ 1,601 N1arketable securities (note 7) 252 600 Current receivables (note 8) 4,872 4,339 Inventories (note 9) 3,461 3,343 Current assers 10,804 9,883 Property, plant and equipment - net (note 10) 6,844 5,780 investments (note 11) 1,907 1,820 Other assets (note 12)
, 1,387 1,028 Total assets
$20,942
$18,51 i Liabilities Short-term borrowings (note 13)
$ 1,171
$ 1,093 and equity Accounts payable (note 14) 2,012 1,671 Progress collections and price adjustments accrued 2,519 2,084 Dividends payable 182 170 Taxes accrued 753 628 Other costs and expenses accrued (note 15) 2,097 1,946 Current liabilities 8.734 7,592 Long-term borrowings (note 16) 1,059 1,000 Othe 'i bilities 1,855 1,565 a
Total liabilities i 1,M8 10,157 hiinority interest in equity of consolidated affiliates 166 154 Preferred stock ($1 par value; 2,000,000 shares authorized; none issued)
Common stock ($2.50 par value; 251,500,000 shares authorized; 231,463,949 shares issued 1981 and 1980) 579 579 Amounts received for stock in excess of par value 657 659 Retained earnings 8,088 7,151 9,324 8,389 Deduct common stock held in treasury (196)
(189)
Total share owners' equity (notes 17 and 18) 9.128 8,200 Total liabilities and equity
$20,942
$18,511 Commitments and contingent liabilities (note 19)
The infornution on pages 38 and 42 50 n an integral part of this statement.
40
Statement of changes in financial position centrai l icar s compangna tonena.aca.naures f or ttw years trulea ! tcriit er il lin Tulliosisi 1981 1980 1979 Source of From operations funds Net earnings
$ 1,652 51,514 51,409 I)epreciation, depletion and amortiration SS2 707 624 investment tax credit deterred - nel 46 56 45 income tas timing ditterences 33 63 (37) liarnings retained by nonconsolidated finance athliates (27)
(22)
(17)
Mmority interest in earnings of consolidated af filiates 46 21 29 2.63'
',339 2,053 increase in long-term borrowings 160 122 50 l)isposition of treasury shares 169 136 148 Increase in current liabihties other than short-term borrowing,
1,064 49S 786 Other - net (78) 143 101 Total source ot f unds 3,947 3.238 3,13S Application Additions to property, plant and equipment 2,025 1,94S 1,262 offunds I)is idends declared on conunon stock 715 670 624 increase in ins estments 87 129 281 Reduction in long-term borrow ings 101 69 97 Purchase of treasury shares 176 145 156 Increase in current receivables 533 692 358 increase in ins emories 1IS IS2 158 Total application of tun 6 (note 12)
-3,755 3,S35 2.936 Net change Net change in cash, mark. table securities and short-term borro c.ings 5 192
$ (597)
$ 202 Analysis of increase (decrease) in cash anti marketable securities 5 270
$ (375)
$ 113 netchange I)ecrease (increase) in short-term borrow ings (78)
(222) 89 increase (decrease) in net liquid assets 5 192 5 (597)
S 202 rhe inrornunon on rares Nnd C So is an nuerr d in of um st acnient P
{
41
Summary of significant accounting policies Basis of consolidation and anmrti/ation of prior sers ice liabilities over a period of 20
'Ihe hnancial statements conmbdate the accounts of the parent years are being charged to operating expenses currently.
General lilectric Company and those of all majority-ow ned investment tax credit and controlled mmpanies t "attiliated companies"), except li-
.i he investment tax credit is det_ erred and amortized as a redue-nance companies w hose operations are not similar to those of k
o kibb m the consolidated group. All significant transactions among the w hich the credit applies, rather than being *,tiowed through,,
parent and athliated companies are eh.mmated f rom the consol-idated statements.
to income in tk yade awet h acquM The nonconwlidated finance companies are included in the Inventories statement of financial position under insestments and are val-Substantially all manufacturing ins entories located in the U S.,
ued at equity plus advances. In addition, companies in w hich as well as a number of those outside the U.S., are valued on a Gli and or its consolidated attiliates own 204 to 509 of the last-in first-out, or LIFO, basis. The remaining manufacturing voting stock (" associated companies") are included under in-insentories outside the U.S. are generally valued on a tirst-in sestments, valued at the appropriate share of equity plus ad-first-out, or Fil O, basis. Valuations are based on the cost of vances. After-tax earnings of nonconsolidated finance compa-material, direct labor and manufacturing overhead, and do not nies and associated companies are included in the statement of exceed net realizable values. Certain indirect manufacturing earnings under other income.
expenses are charged directly to operating costs during the A nonconsolidated uranium mining company (see note 11) period incurred, rather than being capitalized as inventory.
is also included under ins estments and is valued at low er of Mining insentories, w hich include principally mined ore cost or equity, plus advances.
and coal, metal concentrates and mining supplies, are stated at e,ie, the lower of average cost or market. Mining insentories in-A sale is recorded only w hen title to products passes to the clude both direct and indirect costs consisting of labor, pur-customer or w hen services are performed in accordance w ith chasaj supplies and services, and depreciation, depletion and amoraratmn of property, plant and equipment.
contract terms.
Foreign currency translation Property, plant and equipment Foreign currencies are translated in accordance with Statement N1anufacturing plant and equipment meludes the original cost of Financial Accounting Standards No. S. The Financial Ac_
onand, buildings and equipment less depreciation u hich is counting Standards lloard has issued a new standard for for_
the estimated cost consumed by wear and obsolescence. An eign currency translation (SFAS No. 52) which, w hen imple-accelerated depreciation method, based principally on a sum-l mented in the tuture by Gli, is not expected to have a material of-the-y ears digits formula, is used to record depreciation of ef fect on the Company s financial statements.
We original cost of manufacturing plant and equipment in the U.S. Most manufacturing plant and equipment located outside Pensions the U.S. is depreciated on a straight-line basis. If manufactur-Awets and liabihties of the General lilectric Pension Trust, ing plant and equipment is subject to abnormal economic con-which funds the obligations of the General lilectric Pension ditions or obsolescence, additional depreciation is provided.
Plan, are not consolidated with those of the Company. Invest-lispenditures for maintenance and repairs of manufacturing ments of the Trust are carried at amortized cost plus pro-plant and equipment are charged to operating costs as incurred.
gra.amed appreciation in the common stock portfolio. Ilegin-The cost of mining properties includes initial expenditures ning in 1981, the funding program and Company cost and cost of major rebuilding projects w hich substantially in-determination f or the Pension Plan use 7M as the estimated crease the useful lives of existing assets. The cost of mining rate of future Trust income. Trust income includes recognition properties is depreciated, depleted or amortized over the use-of appreciation in the common stock portfolio on a systematic fullives of the related awets by use of unit-of-production, basis w hich does not gise undue weight to short-term market straight-line or declining-balance methods.
Iluctuations. Programmed appreciation will not be recognized Mining exploration costs are expensed until it is determined if aserage carrying value exceeds aserage market value, calcu-that development of a mineral deposit is likely to be ecenomi-lated on a moving basis oser a multiyear period. Changes in cally feasible. Alter this determination, all costs related to prior service habilities of the Plan are amortized os er 20 years.
further deselopment are capitalized. Amortization begins upon Actuarial gains and losses are amortized over 15 years.
commencement of production and is over the productive life of Costs of the General Electric Supplementary Pension Plan. a the property.
separate plan primarily af fecting long-service profewional and The full-cost accounting method is used for oil and gas managerial employ ees, are not funded. Current service costs properties.
f 42
Notes to financialctatements valuc of the portfolio, were 10.19 in 1981 and 8.49 in 1980
- 1. Operating costs and 1979.
aln nulinin9 1981 1980 1979 Condensed current value information for the Trust appears I.mployee compensatn>n, below. Current-value information is presented in accordance int luding bencha 510.20x 59.1%
5 8.286 with Statement of Financial Accounting Standards No. 36 re-Ner quirements, w hich differ from the carrying value used by the st 13.475 12.696 11.320 Ikpreaain,n depletnin and Company for funding and cost determination purposes.
ann ertizatn en 882 707 624 enwal DecMc Penskn hd and th ni n
346 299 259 Int rea ins entones during Change in net assets al current value For the year (In nulhono 1981 1980 1979 Total operatmg costs 524.793 522.716 s20.331 Supplemental detadt N#' ""#" "I
""I
""# "} '""
Mamtenance and repairs 5897 57X4 5775 Company-funded researth and development M14 760 640
""' I Soaal Secunty tases 567 484 471
"'#"'E "i # # I"'"""^-
Aasertismg 331 315 282 thange in current s alue t6x6i 779 173 g,
g dunes 105 80 82 Net awets at December 31 56.579 56.41 M 54.968 Foreign currency translation gains after taxes and minority interest share, calculated in accordance with Statement of Fi-Net assets at current value nancial Accounting Standards No. 8, were $78 million in December 31 (in nulhonsi 19si 1980 1979 1981, $40 million in 1980 and $ 12 million in 1979. This SFAS U.s posernment obhgations No. 8 calculation excludes the ef fect of exchange rate changes and guarantees s 432 s 44 s i18 on inventory-related amounts. The inventory-related effects in Corporate bonds and notes 813 727 496 cost of sales hase generally offset the GE translation gains Real estate and mortgages 871 825 713 Common stocks and other calculated m. accordance with SFAS No. 8 and, therefore, ex-equity secur: ties 3.75 4.181 3.i93 change rate changes have had virtually no effect on GE's net 5.867 5,777 4.520 earnings.
Cash and short-term investments M4 553 371 Other awets - net 68 8x 77 2, Pensions Current salue of net assets 56.579 56.418 54.968 Total pension costs of General Electric and consolidated affil.
Carrying value of net iates w cre $549 million in 1981, $478 million in 1980, and awen 56.440 55.593 54.922
$413 million in 1979.
The actuarial present value of accumu: ted plan benefits for General Electric and its affiliates have a number of pens.ton the General Electric Pension Phn and the Supplementary Pen-plans. Fhe most significant of these plans is the General sion Plan, calculated in accordance with Statement of Finan-Electric Pension Plan (the " Plan"), m which substantially all cial Accounting Standards No. 36, is shown below. The table emplo)ees m the U.S. are participating. Pension benefits under also sets forth the total of the current value of Pension Trust the Plan are funded through the General Electric Pension Trust assets and relevant accruals in the Company's accounts.
(the " Trust"). The other principal pension plan is the General Electric Supplementaiy Pension Plan. These Iwo plans account General Electric Pension Plan and for over 90% of GE's pension benefits. Approximately 86,000 Supplementary Pension Plan persons were receiving benefits at year-end 1981.
December 31 (In milhons) 1981 1980 1979 For funding and annual cost determination purposes, Istimated actuarial present 5 alue of changes were made in 1981 in mortality assumptions and, accumulated plan benehte recognizing the impact of intiation, in projections of pension
[';'
"#{g 56J
$J 5
benefits and by mercasmg f rom 67 to 7%9 the estimated rate Total benents 56.543 56.442 ss.80s of future Trust mcome. The net eff ect of these changes on 1981 pension costs was not material.
C"{"'['f"ual 54801 56.580 55.075 Earnings of the Trust, including programmed recognition of common stock appreciation as a percentage of the carrying The present values were calculated using a 7%9 interest rate 43
[
j assumption as of 1)ct ember 31,1981, and 6'; as of the end of All General I lectric consolidated U.S. federal income tax re-19x0 and 1979. !! the 19X I thanges m the actuarial mterest rate turns base been closed through 1972.
and mortahty assumptions had not been made, the present GliCC, a nonconsolidated finance attiliate, is included in j
.alue of total benehts at the end of 1981 in the precedmg table General lilectric's U.S. f ederal income tas return. Primarily would base been $855 milhon greater.
because of tas credih and timing ditterences related to its leasing actisities, GliCC records prm isions for taxes rect ver-able, w hich represent the ellect of GliCC's operations on the m_-~.
._-__m____..----
- 3. Other income aggregate tases pay able. GliCC's provisions, w hich ottset cor-In nuihono 19xi 19sn pr9 responding amounts included in the estimated amounts payable Nei caninue u >i UI. ned i nirpoianon si42 sits s 90 by the consolidated companies show n in the preceding table, ino.n e suppoo pa> nienn nco in in ut.
o4 were 5633 million tor 19S1,5244 million for 19S0 and $164 Gia ainnigs in nn ci cc 129 its million f or 1979. l'or 19S1, the net Gli-Gl!CC recoserable I no.inc '"""
muount will be reah/ed by carry back against previous years' Ntarkclable set ur thcs and bank delmits 2 to 229 229 tases.
rusn.nier nnanong xo 72 70 Rouh > and iu hna al agn cincns 59 52 so Prmision has been made for lederal income taxes to be paid woared o.nipaines.4nd non on that portion of the undistributed earnings of affiliates and o.nsondaird os an.um unnmg ainhate e
22 II associated companies espected to be remitted to the parent other msesoncns h icrest is j(
jii company. Undistributed earnings intended to be reinvested oon nundr> nenn s2 40 1x indefinitely in athliates and associated companies totaled snia ssna ssiv 51,265 million at the end of 19S 1,51,111 million at the end of
=
=
19S0, and 5944 million at the end of 1979 Gl:CC's reported 1981 net earnings t $142 million) include an Changes in estimated toreign income taxes payable and in mwme support pay ment ($13 million atter taxes) made by Gli the ettect of timing ditferences result principally from fluctua-to maintain Gl.CC's tised charge cmetage ratio at 1.15.
tions in f oreign earnings and tas rates, and from recogni/ing in the current year for tax pay ment purpos s the results of trans-actions in Australia recorded for financial reporting purposes
.m.~ m.__
- 4. Interest and other financial charges in other y ears.
Interest capitalized on major property, plant and equipment insestment credit amounted to 595 million in 1981, com-piojects a as $23 nulhon and $21 million in 1981 and 19SO, pared with 502 million in 19So and $76 million in 1979. In respet tis ely.
19S 1,549 million were included in net earnings, compared aith $36 million in 19SO and 53I million in 1979. At the end
~ _, ~ _., _ _.. _., _ _., ~ _, -
of 19S1, the amount still deterred and to be included in net 5, Provision for income taxes earnings in future years was 5306 million.
on nnihona Pix t i9sn 1979 e s tcdcial ma me t.ncs Effect of timing differences on U.S. federalincome taxes i sinnaicd amount papble ss29 ss74 ss99 l I!nl oI tuning ditlef elh es 3l l4 (3ll for inuinic tases ins estnielli t ledit dctci red tiet 46 56 4$
aln nulininsi 19xl 19xn 1979 "I3 l'as m er book depredatnin s 67 s 4x s 23 l olcIf f) nh o'th' la Ws Undhf ributed t ar nmes of athhales I sinnated amount payb!c 317 21x 323 anJ associated compames 7
29 (2)
I ticit of tunmp ditterentes (Isi 39 tb>
Ntarem on mstallment sales 8
I (im 102 277 317 Prousion tor w arrannes 23 (4N 13N Odwr - - net i74) iN IN
()thct ipons ipalh state and h(al muime tawo s4 17 24 5 31
% I4 9 336 5962
$_9 s s
$_9s 1
Reconciliation from statutory to effective
~-
income tax rates
- 9. Inventories pmi iyso 1979 Daenha 31 iln nuuionu I%I 1%0 U.S federal statutory raic 46 09 46 01 46 09 Reduc tion in ta xes resulang f ront Raw matenals and work m procew 52.Os9 52.0x2
\\'arying tas rates of consolidated I innhed goods 1.099 961 af filiates untluding DISC) f 5 26 (4 75
( 3 3, lf nhlled shipments 273 3n0 Intlosion of carnings of the
$3.461 53.341 Credit Corporanon in before tas insestI :$Sa i
'Wmt SM of totalinsentories are valued using the LIFO I
Intome tas at capaal ga ns raie m 2i mD method of inventory accounting.
Other - net 10 4, ox o2 If the Fil O method of inventory accounting had been used Inctine tax rate 36 24 3x 49 39 91 to value all inventories, they would have been 52,465 million higher than reported at December 31.1981 ($2.240 million Hased on the h> cation of the component turnishing goods or higher at year-end 1980).
services, domestic income before taxes w a,52.014 million in 198I ($1 S54 million in 19SO and $1.706 million in 1979).
1-
't he corresponding amounts for foreign-based operations u ere
- 10. Property, plant and equipment
$646 million, $639 million and 56S5 million in each of the last iln milhonu 19xl 19xo three years, res.pectively. Provision for income taxes is deter.
Ntaimiasses at December 31:
mined on the basis of the jurisdiction imposing the tax liability.
""'*}']'"8 P ""j,""d '4"'P""'
I gg,
n g 334 3
,39 I'herefore. U.S. and foreign taxes show n at the left do not liuildines. uruttures and compare directly w ith these segregations.
relate'd equirment 2.581 2.329 Ntahmery and equipmert 7.121 6.197 1.caschold costs and manutac-
'"""F P'"*""d" '"""'"'"""
- 5
- 6. Earnings per common share N!meral propertv. plant and liarnings per share are based on the average number of shares equipment 2.263 1.917 Outstanding. Any dilution w hich would result from the poten-
$12.705 511.035 tial exercise or conversion of such items as stock options or comertible debt outstanding is insignificant (less than 19 in
.sddinons 511.035 5 9.3t3 Cosi at Januarv I 2.o25 i.94x 1981,1980 and 1979).
Dnposinons (3551 4278)
Cost at December 31 512.705 511.035 Accumulated depreciation,
- 7. Cash and marketable securities depletion and amortization Deposits restricted as to us. age and w ithdraw al or used as par _
ltilance at January I
$ 5.255 5 4.752 tial compensation for short-term borrowing arrangements were
["*[,$'"' P'""'i""
[,
not material.
Other t hanges 19) to Marketable securities (none of which are equity securities) lialance at December 31 5 5.x61 5 5.255 are carried at the lower of anyorti/ed cost or market value.
Property, plant and equipment Carrying value was substantially the same as market value at less depreciation, depletion and year-end 1981 and 1980 amortization at December 31 5 6.844 5 5.780
- 8. Current receivables December 31 iln milliono 19xi 1%0 Customers' accounts and notes 53.959 53.x 16 Awociated companies 49 25 Nonconsolidated athhates 21 17 Other 927 5x4 4.9s6 4.442 1 ess allow ans e f or lowes iI141 (103 54.x72
$4.139 The increase in other current receivables resulted primarily from tax refunds and carry backs attributable to increased leas-ing actisity as discussed in note 5.
45 t
- 11. Investments General Electric Credit Corporation Financial position December 31 (In nothono 1981 19W December 3 i tin nnihons) 1981 19Xo Noncomohdated hnance athhates 51.082 5 938 Cash and marketable secunnes 5 461 5 531 Nonconsohdated uranium nunmF Recen ables.
afhhate 168 188 Tune sales and loans 9.157 8.159 Matellaneous insestments tat cmit Aferred income Il.642)
(l.3808 Gaernment and gosernment-7.515 6.779 guaranteed setunnes 186 I87 Insestment m linanemg leases 2,732 1.643 Other 104 136 Sundry recen ables 571 197 290 323 Total recen ables 10.818 8,619 Marketat.:e equity secunties 41 44 Allow ance for lowes (294)
(2498 Awot iated companies 345 142 Ret en ables - net 10.524 8.370 Irw allow ant e f or lowes 21I t15>
14uipment on operatmg leases - net 413 288
% !.907 51.820 Other aweis 392 155 Iotal awet 5 511.812
$9.344
(.ondensed consolidated financial statements f.or the principal N",',[ b bne year nonconsolidated finance affiliate, General Electric Credit Cor-u s 5.800 54.425
,i poration (GECC), follow. During the normal course of busi-tyng.ierm - senior 2.323 1.984 ness, GECC has transactions with the parent General Electric
-- subordmated 480 400 Other habilities 903 707 Company and certain of its consolidated affiliates, and GECC results are included in General Electric's consolidated U.S.
Iotal hab' lines 9 504 7 516 lederal income tax return. Virtually all products financed by Deferred income taes 1.202 876 GECC are manufactured by companies other than General Deter'ed insestment in creJits 32 21 Electrie.
Capaal stak 761 658
[.f]i, ','li 3h
[
"""' P d
'"P"
GECC's net earnings as shown in its eat nings statement
($142 million) have been reduced by the atter-tax ef fect
,,g7, 93,
($13 million) of the meome support paytaent to arrne at the Total liabihties, deferred in
$129 million presented in note 3-items and equity
$11.812
$9.344 More information is available in GECC's 1981 Annual Re-General Electric Credit Corporation port, w hich may be obtained by writing to: General Electric Current and retained earnings Credit Corporation, P.O. Ilox 8300, Stamford, Conn. 06904.
I or the > car sin nulhons:
1981 luso 1979 investment in the nonconsolidated uranium mining affiliate 1 ar ned msome si.7x2 s t.3x9 51.102 consists of investment in a w holly owned affiliate, all common ix penset stock of which is in a voting trust controlled by independent Interest and discount 1.n45 7i9 528 voting trustees. In February 1982, the GE Iloard of Directors nInIiI:nc approved a transaction involving the sale of 80's of this affili-490 asi 396 Pnu mon for lowes ate's common steck at approximately book value. This transac-
- icceis ables sol 75 69 tion is not expected to have a material impact on GE's consoli-
- other assets Op 3
(2) dated financial statements.
1.613 1.248 991 The estimated realizable value of miscellaneous investments Opere.ng meome 149 121 1II was $240 million at December 31,1981 ($287 million at De-Inmme supimrt pay meni cember 31,1980).
f rom Gl;
.5 M rketable equity securities are valued at the lower of cost lainings before miome ines 174 141 il1 Pnn nion for mmme ines 32 26 21 or market. Aggregate market value of marketable equity secu-Net earnmgs 142' i15 90 rities was $365 million and $242 million at year-end 1981 and
=
l.cu dnidends (102) 1936 (721 1980, respectively.
Retamett ca n.ngs at Investments in nonconsolidated affiliates and associated January 1 261 239 221 ompanies included advances of $72 million at December 31, 1981 ($180 million at December 31,1980).
i e s 301 s 261 s 23, 46
through banks and commercial credit markets is not readily 12.Other assets quantifiable, confirmed credit lines in excess of $1 billion had incemur 31 (In mdlions!
1981 19xo been extended by about 80 banks at year-end 1981. Of these long-term receivablei 5 385 5 340 lines, approximately $500 million are also available for use by Ikferred charges 206 198 General Electric Credit Corporation.
Licenses and other intangibles 189 49 Real ntate development projects 148 132 Recoverable engineermg costs on government contracts 145 113
- 14. Accounts payable Goodwill 141 26 December 31 (In millions) 1981 1980 Trade accounts
$1,371 51,402 6
Collected for the account of others 230 203 51,387 51.028 Nonconsolidated affdiates 411 66 s.012 51.6H During 1981, a numtier of companies were acquired to aug-ment General Electric's plans for future grow th. Considera-tion for these acquisitions included $381 million in cash and 486,000 shares of GE common stock from the treasury. In
- 15. Other costs and expenses accrued certain cases, there may be futuie cash consideration contin-The balances at year-end 1981 and 1980 included compensa-gent upon attaining specified performance goals.
tion and benefit costs accrued of $735 million and $703 mil-The acquisitions were accounted for as purchases. The dif-lion, respectively.
ference between total acquisition costs of $409 million and the value of net tangible and identifiable intangible assets acquired was recorded as goodwill to be amortized over periods no
- 16. Long term borrowings greater than 20 years. Net assets and operating results of the Sinking fund /
acquired companies are not material to consolidated 1981 fi-Outstanding Due prepayment nancial results.
Ikeember 31 (In millions) 1981 1980 date period General Electric Company:
5%9 Notes 5 56 5 62 1991 1972-90 5.309 Debentures 62 70 1992 1973-91
- 13. Short term borrowings 7M9 tkbentures 133 135 1996 1977-95 rwember 31 On millions) 1981 1980 8%% tkbentures 284 288 20N 1985-03 l'tah international inc.:
Ascrage Average rate at rate at Notes with banks.,
71 37 1993 1982-93 89[. ar e
vg Amount Ike. 31 Amount Ike. 31 I3 15 1987 1977-87 parent notes uith trust 7.6% NoO 24 28 1988 1974-88 departments 5 371 12.69 5 353 15.19 oth-28 32 Consolidated aniliate Gent ni,t>
a=
banh turrowings 449 28.5 539 30.8 Cai Ars Other, includmg current 4g,tonds 23 23 1985 1976-84 portion of long-term 4% Debentures 50 50 1987 None borrowings 351 201 5%9 Sterling / Dollar
$1,171
$1,093 Guaranteed 1
tean Stock 7
9 1993 None i
The average balance of short-term borrowings, excluding the Other 33 34 All other 275 _2jl current portion oflong term borrowings, was $991 million during 1981 (calculated by averaging all month-end balar.ces
$1.059 sl. e for the year), compared with an aserage balance of $822 mil-tion i,1980. The maximum balance included in these calcula-The amounts shown above are after deduction of the face value tions was $1,205 million and $962 million at the end of April of securities held in treasury, of which the more significant 1981 and October 1980, respectively. The average effective amounts are shown below.
interest rate for the year 1981 was 21.84 and for 1980 was Face value of long term borrowings in treasury 1p.Wr. These average rates represent total short-term interest Deecmber 31 (In millions) 1981 1980 incurred, disided by the average balance outstanding.
General Electrie Company:
Other boirowings included amounts from nonconsolidated 5.309-Debentures
$48 550 affiliates of $141 million in 1981 ($95 million in 1980).
7H9 Debentures 31 35 8%9 Debentures 16 12 Although the total unused credit available to the Company 47
Utah Internation ] Inc. notes with banks wcre subject to Shares of treasury stock average interest rates at year-end 198l and 1980 of 10.49 and December 31 (in thousands >
1981 19M0 1979 I l.3%, respectively.
Iklened incentne compensanon 2.037 1.922 1.785 llotrowings of General lilectric Overseas Capital Corpora-Other corporate purposes f
77 1 0 tion are unconditionally guaranteed by General lilectric as to payment of principal, premium if any, and interest. This Cor-Shares held f or deferred compensation provisions of incentive paration primarily assists in linancing capital requirements of compensation plans are carried at market value at the time of foreign companies in w hich General lifectric has an equity allotment, w hich was $105 million, $96 million and $88 mil-interest, as well as financing certain customer purchases. Ilor-lion at December 31,1981.1980 and 1979, respectively. The rowings include 4%% Guaranteed Debentures due in 1987, liability is recorded in other liabilities. Remaining common w hich are convertible into General lilectric common stock at stock in treasury is carried at cost. The maximum number of
$MO.75 a share, and 5%9 Sterling / Dollar Guaranteed Loan shares required for conversion of General I!!ectric Overseas Stock due in 1993 in the amount of C3.6 nullion (57 million),
Capital Corporation convertible debt was 734,(XXI at Decem-convertible into GI! common stock at $73.50 a share.
ber 31,1981. Requirements of shares for conversions and All other long-term borrowings were largely by foreign and benefit plans may be met either from unissued shares or from real estate development affiliates with various interest rates shares in treasury.
and maturities, and included amounts due to nonconsolidated affiliates of $7 million in 1981 and 1980.
long-term borrowing maturities during the next five years,
- 18. Stock option information including the portion Massified as current, are $104 million in As crage per share 19M2, $139 million in 1983,575 million in 1984, $83 million Shares subject Option Market in 1985 and $61 million in 1986. These amounts are after iShares in thouunds t to option priec price deducting reacquired debentures held in treasury for sinking Italance at January 1.19xo 4.759 s50 67 s50.63 fund requirements.
opnons gr nted 98 61.50 61.50 Options eterened (273)
J1.13 56.16 Opnons surrendered on escreise of appreciation rights (1241 41.93 54.92
- 17. Common stock opnons termmated (157) 51.02 Itn milhons) 19xt 19so 1979 Italance at December 31.19%O 4.303 51.56 61.25 Common stock issued opnons granted 921 56.20 56.20 Balance January I and Options escrened (2541 4M.99 63.74 2kcember 31 5579 5579
$579 opnons surrendered on esercise Amounts received for of appreciation rights i130) 48 00 63.29
""" ermindted (2n01 55.65 Clockin excess of par llalance at ikcember 31.1981 4.640
$2.55 57.48 value Italance Januarv I 5659
$656 5658 cain't tossi o'n anpounon Stock option plans, appreciation rights and performance units of treasm y stock
<2, t
(23 are described in the Company's current Proxy Statement. The natance ikcember 31 s657 sow s656 number of shares available for granting additional options at the Common stock held in end of 198I was I N4,373 (1,862,756 at the end of 1980),
treasury llalance January l 51N9 518n
$172 Purchases 176 145 156
- 19. Commitments and contingent liabilities ase conunsnenh and contingent liabilities, consisting of i I s.n ino plans ii13i 1991 t124) t.mploh ee uoc k'ow nership plan (24)
(16) tIII guarantees, pending litigation, taxes and other claims, m the Incentne compenwoon plans (5) a7) on opinion of management, are not considered to be material in SW k opnons and apprecianon rights (14 ital (58 relation to the Company's financial position.
Iluunen acqumnons (13)
Balance lkccmber 31
$196
$189
$1N0 l
At December 31,1981,1980 and 1979, respectively.
l 227,761.000 and 227,765,000 and 227,839,000 common l
shares u ere outstanding af ter deducting common stock held i
in treasury as summarized at upper right.
I 48 w.
Industry segmentinform: tion Revenues On pullums) her the ycan ended iktemtwr il l'otal revenues interscynent ules laternal sales and other msome 1981 1980 1979 1981 19M0 1979 1981 19M0 1979 Services and materials 5 2,4 M $ 2.115 5 1,901 5
91 5 M4 5 73 5 2,373 5 2,031 $ I,82M liarnings of GliCredit Corp.
129' i15 90 129' i15 90 Total services and materials 2,593 2,230 1,991 91 M4 73 2,502 2,146 1,91 M Consumer pn=lucts 6,643 6,342 5.990 128 IIi 126 6,515 6,231 5,M64 Industrial pn=lucts 4.871 4,690 4,375 363 352 350 4,508 4.33M 4,025 Natural resources 1,722 1,374 1,260 1,722 1,374 1,260 Power systems 5,982 5,M I S 5,124 223 272 201 5,759 5.543 4,923 rechnical systems 3.979 3,252 2.761 195 206 170 3,784 3,046 2,591 Aircraf t engine 2,950 2.660 2,190 55 36 13 2,895 2,624 2.177 Corp > rate items and chnunations (MM6)
(840)
(711)
(1,055)
(1,061)
(933) 169 221 222
'li>tal 527,854 525,523 522,9M0 5
- 5
- 5
$27,854 525,523 $22,980 Operating profit Net earnings I or the yean ended Ikccmber 11 I or the years ended Ik(ember 31 1981 19M0 1979 1981 1980 1979 Services and materials 5 477 5 403 5 3M5 5 253 5 206 5 212 liarnings of Gli Credit Corp.
129' i15 90 129' i15 90 Total services and materials foh
$1H 475 3H2 321 302 Consumer pn=lucts
$49 615 617 292 312 33M Industrial pnslucts 495 438 335 242 225 171 Natural resources 493 4N 431 2H4 224 20M Power systems 446 366 349 224 201 183 Tec hnical systems 249 230 215 98 105 113 Aircralt engine 322 275 IMS 149 141 97 Total segment operating proht 3,160 2 M46 2,607 Interest and other hnancial charges (401)
(314)
(258)
Corporate items and eliminations 039 )
(39) 42 (19)
(15)
(3)
Total 5 2,660 5 2,493 5 2,391 5 1,652 5 1,514 5 1,409 Assets Property, plant and equipment At Iksember 31 I or the )can ended December 31 Ikpreaation, depichon and Additions amortuatnin 19M1 19M0 1979 1981 1980 1979 1981 1980 1979 Services and materials 5 2,150 51 M35 5 1,461 5 340 $ 352 5 252 5
126 5 94 5 80 Investment in Gli Credit Corp.
1,074 931 817 Tota! senices and materials 3,224 2,766 2,278 340 352 252 126 94 80 Consumer pnsfus ts 2,926 2,656 2,500 309 267 221 162 145 127 Industrial pn=lucts 2,074 2,031 1,916 187 170 126 93 M3 M2 Naturai resources 2,359 2,109 1,679 325 446 201 Ill 94 M3 Power sptems 3,718 3,702 3,3M 1 285 250 202 IMI 150 139 Tes hnical systems 2,309 1,713 1,32M 327 167 113 104 76 65 Aircrall enginr' I,951 1,703 1.225 187 239 123 M6 50 37 Corporate items and eliminations 2,381 1,831 2.337 65 57 24 19 15 II
'listal 520,942 518,511 516,M4 5 2,025 5 1,948 5 1,262
$ M82 5 707 5 624
+1wludmg income suppor payment by Gli The grouping of products and services for mdu,try segment re-parallels the organization of the Company into Sectors for internal I
porting purlwises was revised in 1981, The new grouping closely management purpises but is on a w oildwide basis. This means 1
4 49
that pn> ducts and services of multi-industry foreign af filiates are that such companies service their ou n debt. In 1981, responsi-classihed by appropriate industry segments. The types of prod -
bility for the financing programs of certain affiliates was trans-ucts and services within each segment, as well as additional ferred to the Corporate Treasury Operation. Appropriate reclas-commentary relevant to segment operations, are on pages 22 silications of operating results and total assets for this change through 28 of this Report. Ilecause the several segment group.
are reflected in the years shown.
ings are substantially dif ferent from those presented previously, General corporate expenses are allocated principally on the all years show n have been restated to a comparable basis.
basis of cost of operations, with certain exceptions and redue-Approximately one-eighth of external sales were to agencies tions w hich recognize the varying degrees to which affiliated of the U.S. government, which is the Company's largest single companies maintain their own corporate structures.
1 customer, Slost of these sales were aerospace products and in addition, provision for income taxes ($962 million in 1981, services, which are included in the Technical Systems indus-
$958 million in 1980, and $953 million in 1979)is alhicated try segment, and aircrafI engines and related products and based on the total corporate effective tax rate. cxcept for GECC services.
and Natural Resources, w hose income taxes are calculated separately.
Net earnings for industry segments include allocation of cor-Slinority interest t$46 million in 1981,$21 million in 1980 porate interest income, expense and other financial charges to and $29 million in 1979) is allocated to operating components parent company components based on change in individual having responsibility for investments in consolidated affiliates.
component average nonlixed investment. Interest and other ti-In general, it is GE policy to price internal sales as nearly as nancial charges of a number of aflibated companies recognize practicable to equivalent commercial selling prices.
Geographic segment information Revenues iin nuthon0 I~or the years ended thember 31 Total res enues Intersegment sain liuernal sales and other income 1981 19so 1979 1981 1980 1979 19x1 1980 1979 l'nited Stato 522.697 520.750 518,M59 5 667 5 484 5 467 522,030 520,266 518,392 I at i:ast including Austraha 1,624 1,277
' 133 397 355 280 1,227 922 903 Other areas of the world 4.798 4,459 3.M la 201 124 129 4.597 4.335 3,685 1.hnunation olintracompany transacnons (1.265) 19h3) i8766 (1,265)
(963)
(M76)
Iotal 527,N54 525.s23 522.980 5
- 5
- 5
$27.854 525.523 522.980 Net Earnings Assets l'or the years ended December 31 At Desember 31 1981 1980 1979 1981 19xo 1979 j
l'nited Stain 5 1.373 5 1,175 5 1.120 516.004 513.732 512,693 l ar t:ast msludmp Austraba 228 169 174 1,187 1,090 842 Othet ateas of the world 68 181 120 3.902 3,80M 3.207 1.imunatmn of intrasompany transactions 417)
(It)
(5)
(150 (1191 (98) i Total 5 1,652 5 1.514 5 1.409
$20.942 518.511 516.644 Geographic segment information (including allocation of in-and licensing income from unaffiliated foreign sources.
i come taxes and minority interest in earnings of consolidated Revenues. net earnings and assets associated with foreign aftiliates)is based on the hication of the operation furnishing operations are show n in the tabulations above At December 31, goods or services. Included in United States revenues were ex-1981, foreign operation liabilities, minority interest in equity port sales to unattiliated customers of $3,681 million in 1981.
and Gliinterest in equity were $2,789 million, $154 million and l
$3,781 million in 1980, and $2,772 million in 1979. Of such
$2,146 million, respectis ely. On a comparable basis, the sales, $2,024 million in 1981 t$2,089 million in 1980 and amounts were $2,562 million, $141 million and $2,195 million,
$1,581 million in 1979) were to customers in Europe, Africa respectively. at December 31,1980; and $2,101 million, $139 and the Sliddle East; and $776 million in 1981 t$926 million in million and $1,809 million, respectively, at December 31, 1980 and $741 million in 1979) w cre to customers in the Far 1979.
East including Australia. U.S. resenues also include royalty 50
1 l
Supplementary data (Unauditedi Selected financial data adjusted for the effect of changing prices in dollars of average 1981 purchasing power 1 Dollar anmunts m milhons. except per-share amounts) 1981 1980 1979 1978 1977 Sales
$27.240 527.555 528,144 527.400 526.294 Current cmt information Net earnings
- 1. !M 1.105 1.235 1.206 1.105 Net earnings per share 5.12 4.86 5.44 5.29 4.86 Share ow ners' equity at December 31 14.090 14.256 13.976 13.809 13,353 Exceu of increase in general price lesel mer int reases in specihc GE price levels f al 703 216 412 General pnce level only Net carnmps 1.130 1,136 1.334 Net carmngs per share 4.97 4.99 5.86 Share ow nen' equity at December 31 14.076 13.664 13.077 Other Purchasing power low (b) 84 219 262 160 76 Dividends per share 3 15 3.26 3.44 3.49 3.16 Market pnce per share at December 31 56 65 60 63 73 Aserage Consumer Price indes (CPI-U; 1%7 = 100) 272.4 246.8 217.4 195.4 181.5 (al At December 31.1981, in end-of-year dollan, the current cost of inventory was 56.018 milhon, and property, plant and equipment was 59.768 million. In dollars of aserage 1981 purchasing power. the increase that might have been expected from general intiatmn w as more than the increase in specifie GE current costs by the amount show n. A simdar pattern is shown m the other years.
(b) On net monetary items The above data as well as the data on page 37 have been by GE in preparing these data. Copies of those earlier Reports prepared in accordance with Financial Accounting Standards may be obtained by writing to Investor Relations at the address lloard requirements. GE Annual Reports for 1979 and 1980 shown on page 54, included technical information about the methodology used Mineral resource information Neither traditional nor inflation-adjusted methods of measuring leased areas were in excess of the entitlements. About 137c of financial results can adequately portray the value of unique, presently available reserves are committed under long-term nonrepniducible, mineral resource assets. Some measure of sales contracts.
the significance of these assets is conveyed by statistical data Total proven steam coal reserves w here operations or active about the principal mineral assets of General Electric's w holly development plans are under way aggregated about 1.6 billion ow ned, consolidated affiliate, Utah International, as shown tons at the end of 1981 and 1980. About 257r of these reserves below.
are currently committed under long-term sales contracts. In ad-dition, at the end of 1981 and 1980, Utah had other proven Coal steam coal reserves of about 1.8 billion tons.
(Quantities in nulhon )
1981 14s0 1979 cokmg coal (Utah share m metne tons)(at I5 land Copper Mine Shipped (bl lh 0 13.1 13 M As crage ptice/metnc ion k) 555.22 551 09 54x.39 tQuantities in thousands) 1981 1980 1979 Steam coal itom)
Ore mdled uons) 15.605 15.192 14.705 shipped (bl 13.7 10 5 88 Aserage percent recosery 85.4 9 85.2 4 87.54 Ascrage pnce ton
$13 83 5 7.82 5 7.09 Pounds of copper (al I!tah operates five pnncipal mmes in Queensland through an athhat'
-sold Ia) 117.012 110.305 110.309 l'tah*i share is M99 of one mme and 6M4 of the othert Aserage price per pound of copper tb) About the same as pnsluctism.
~<opper 50.78 50.98 50.93 tc) Represents aserage prices pubhshed by an agene) of the Austrahan
-by-products 0.39 0.65 0.43 gmernment for Queensland production, msludmg l'tah-operated mmes.
(a) Atmut the same as pmduction.
Coking coal is mined by a Utah affiliate, Utah Development At 1981 year end, reserves at Island Copper hiine in British Company, under long-term, renewable Special Coal 51ining Columbia were approximately 17 I million tons of ore with a I. cases granted by the state of Queensland, Australia. At De-grade of approximately C.487c copper. These reserves also in-cember 31,1981, Utah's share of export entitlements under clude gold, silver, moly bdenum and thenium as by-products.
Special Coal Niining 1. cases granted by Queensland amounted About i 14 of copper reserves are currently committed under to 399 million metric tons. Proven reserve quantities in the long-term contracts.
51 L
Ten-yccr cumm:ry e Sclated hnancial data t Dollar arnounts in mdimns; per-share anmunt5 in dollan>
1981 1980 1979 Summary of operations Sales of products and services to customers 527,240
$24,959
$22,461 Cost of goods sold 18,945 17,751 15.991 Selling, general and administrative expense 4,966 4,258 3.716 Depreciation, depletion and amortization 882 707 624 Operating costs 24.793 22,716 20.33i Operating margin 2,447 2,243 2,130 Other income 614 564 519 Interest and other financial charges (40 0 (314)
(258)
Earnings before income taxes and minority interest 2,660 2,493 2,391 Provision for income taxes (962)
(958)
(953)
Minority interest (46)
(21)
(29)
Net earnings 5 1,652
$ 1,514
$ I,409 Earnings per common share S 7.26 S 6.65 5 6.20 Dividends declared per common share th)
$ 3.15
$ 2.95 5 2.75 Earnings as a percent to sales 6.19 6.1 %
0.3%
Earned on average share ow ners' equity 19.19 19.5%
20.29 Dividends declared S
715 5
670 624 Shares outstanding-average (in thousands) 227,528 227.541 227,173 Share owner accoun's-average 514,0(M) 524,000 540,(XX)
Market price range per share (b) 69b514 63-44 554-45 Price / earnings ratio range (b) 10-7 9-7 9-7 Current assets
$10,804 S 9.883
$ 9,384 Current liabilities 8,734 7.592 6.872 Working capital 5 2.070 5 2.291 5 2.512 Short-term borrowings
$ l.171
$ 1,093 5
871 Long-term borrowings 1,059 1,(XX) 947 Minority interest in equity of consolidated atfiliates 166 154 152 Share ow ners' equity 9.128 8.2(X) 7,362 Total capital invested
$ 11.524 S10,447 5 9,332 Earned on average total capital invested 17.49-17.3%
17.69 Share ow ners' equity per common share-year end
$ 40.0S
$ 36.00
$ 32.31 Total assets
$20.942
$18,511
$16,644 Property, plant and equipment additions 5 2,025
$ 1,948
$ 1,262 WorIdwide employment-average 404,(XXI 402,(XX) 405,00()
ta) Data for )can prior to 1976 hase been adjusted as appropriate to reflett the Ikeemtvr 1976 acquisition of Utah International Inc., w hich was accounted for as a gwhng of interests.
(b) l'or General I.lectric comnon stod as reported in the y ears show n.
{
l l
l 52-
l l
1978 1977 1976 1975 1974 1973 1972
$19,654 517.519 515,697 514,105 513,91S SI1,945 510,474 13,9I5 12.288 l 1.048 10.210 10.092 8,445 7.381 3.205 3,011 2.635 2,238 2.240 2,058 1,872 576 522 486 470 415 372 344 17,696 15.821 14,169 12,918 12,747 10,875 9,597 I958 i 698 1.52S I,I87 I,171 l,070 877 419 390 274 174 207 203 207 (224)
(199)
(175)
(187)
(197)
(143)
(121) 2,153
_ 1,8S9 1,627 1.174 1.181 1,130 963 (894)
(773)
(668)
(460)
(458)
(457)
(385)
(29)
(28)
(2S)
(26)
(IS)
(12)
(5) 5 1,230 5 1.0SS 5 931 5
6SS 5
705 5
661 5 573 U.39 I 4 39 5 4.I2 5 3.07 5 3.I6 5 2.97 5 2.57 5 2.50 5 2.10 5 1.70 5 1.60 5 1.60 5 1.50
$ 1.40
- 6. 3 G 6.29 5.99 4.9',;
- 5. I G 5.59 5.5G 1".69 19.49 I S.99 15.74 17.S%
18.4 4 17.5 9 570 5
477 5
361 5
326 5
315 5
287 5
268 227,985 227,154 225,79 l 224,262 222.921 222,631 222,503 552,(H X) 553.(H)0 566,(M H )
5S2.(KK) 566.(X X) 543,(h M) 542.(XX) 571-43i 57 t-474 591-46 52r 324 65-30 75?-55 73-584 ll-S 12-10 14-11 17-10 19-9 24-17 25-20
$ S,755 5 7,865 56,6S5 5 5.750 S 5.334 5 4,597 5 4,057 6,175 5.417 4,605 4.I63 4,032 3.5SS 2,921 77
( l 5
5 5(
67(
994 1,284 1,322 1,239 1,403 1,166 1.191 151 132 l19 105 S6 63 54 6,5S7 5.9 43 5.253 4.617 4,172 3.774 3,420
$ S 692 5 S.131 5 7.305 5 6.62S 5 6.317 5 5,679 5 5,118 16.39 15.Sq
- 15. I'i 12.59 13.4 4 13.79 12.7%
$ 28.SS 52605 5 23.1S
$ 20.49 5 IS.65 5 16.94
$ 15.35
$15.036
$13,697 512.050 510.741 510.220
$ 9,0S9 5 8,051 5 1.055 5
823 5
740 5
5SS 5
S13 5
735 5 501 401,(H M) 3S4,(W R) 3SO.(x x) 3SO.txx) 409,(H M) 392.(H M) 373,(XX) 53
Otherinformation Quarterly dividend and stock market information Dividends Common stock declared market price range 1981 1980 1981 1980 First quarter 75e 70e
$69%-59%
$57 -44 Second quarter 80 75 69 %-61 %
52 -44W 1hird quarter 80 75 63 %-51 %
58 %-51 %
Fourth quarter 80 75 60 %-53 %
63 -51 W
'Ihe New York Stock Exchange is the principal market on which GE common stock is traded and, as of December 7,1981, there were approximately 502,000 share owners of record.
Operations by quarter (Dollar amounts in millions First Second Third Fourth per-share amounts in dollars) quarter quarter quarter quarter 1981:
Sales of pnducts and services to customers 56.088 56,955 56,636 57,561 Operating margin 514 642 595 6%
Net earnings 359 436 4n5 452 Net earnings per common share 1.57 1.92 i.78 1.99 1980:
Sales of products and services to customers 55.881 56,197 55, % 3 56,918 Operating margin
$27 556 513 647 Net earmngs 342 403 358 411 Net earnings per common share 1.50 1.77 1.58 1.80 Dividend Reinvestment Plan GE share owners w hose Company stock is registered in their own names and w hose addresses of record are in the United States or its territories or possessions are eligible to participate in the GE Dividend Reinvestment Plan. For information on the plan, write to: Securities Ownership Records, General Electric Company, P.O. Box 206, Schenectady, N.Y.12301.
Form 10 K and other supplementalinformation The financial information in this Report, in the opinion of management, substantially conforms with or exceeds the in-formation required in the "10-K Report" submitted to the Securities and Exchange Commission. Certain supplemental information, considered nonsubstantive, is included in that re-port, how ever, and copies without exhibits will be ava"ible without charge, on or about May 1, from: Investor Relations.
General Electric Company, Fairfield, Connecticut 06431.
Copies of the General Electric Pension Plan, the Summary Annual Report for GE employee benefit plans subject to the Employee Retirement Income Security Act of 1974, and other GE employee benefit plan documents and information are available by writing to investor Relations and specifying the information desired.
Transfer Agents r
General Electric Company The First National Bank of Boston Securities Transfer Operation Shareholder Services Division 570 Lexington Avenue P.O. Box 644 New York, New York 10022 Boston, Massachusetts 02102 54
1 Tha Jana yara l
The 10-year summary of GE performance on pages 52 g
and 53 spans the years ofleadership by Reginald H. Jones.
The seventh Chief Executive Officer to serve the Com-pany since its incorporation in 1892, Mr. Jones strength-ened and reshaped GE. While increasing earnings, he k;as' L*~
adapted the Company to a changing world and changing d
UK p#
opportunities. During his eight-year tenure, sales more
~~4j than doubled from the $10 billion level of 1972, and net earnings increased from $573 million to over $1.5 billion by 1980.
As Chairman, Mr. Jones established an effective and
>71 respected strategic planning system that involved man-agement at all levels. He helped direct GE into exciting
- f new markets and businesses-including the merger with I
Utah International Inc. - and produced increased earn-
.N ings. A result of this reorientation was less dependence
- gs g'
- mg ; '
upon earnings from traditional electrical equipment busi-
~ '
-j C '
nesses and more emphasis on high-growth areas such as the President's Export Council) Neiliamp;ioned the sausel mi man-made materials and naturalresources. Additional
.of upward inobility forlminoritiesiexemplified by,hi's i k n '
growth has result:d from becoming a world-class compet. service as founding Chairman of the' National Coun itor through increased exports and expanded international operations.
~
Minoritiesin Engineering (
pq N*
.. _ e3 Mr. Jones leaves to his successors'a Cdmpanythat isi j 4
His belief that public policy and social issues are in the : l financially strong; strategically focused and tebhnologie" ^
mainstream of business planning and management was
~
'callyinnovative---positioned to meet futu reflected in his active role inThe Business Roundtable and
' b-J~
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J. n The 1981 AnnualReportisanissueof theGeneralElectricInvestor, J'Jf Qp published regularly to inform share owners and investors about activi-
.U2
~
J >'
Q)OSC,
s ties of the General Electric Company. Others may receive the Investor on request.
m
.. T S
1
[p Associate Editors: Devere E. Logan: Edna Vereini
~
h Editor: Linn A. Weiss 1'
FinancialEditor: Sidney D. Spencer EditorialBoard: Leonard Vickers, Vice President-Corporate Marketing Programs and Communications Operation; Frederick N.
Robinson, Manager, Corporate Editorial Programs; John L.
Ingersoll, Manager, Corporate Investor Communications
'k-Art Direction: Jack Hough Associates, Inc., Stamford, Conn.
CoverPhoto: Dan Koran Photographers: Stan Blanchard, Joseph B. Brignolo, John Burke, Tom Fenierbar, Bob Garibaldi, Walter B. Halstead, Michael Hemberger, Tom Hollyman, Ted florowitz, Wayne lenacbacker,
' Dick Luria, David Monley, Lance Nelson, Edward Schm'dt, I William Strode 01982 General Electric Company Printed in U.S. A.
55 i
1