Looking back on 2008: GE’s most notable stories

1. Going for the gold at the Olympics

GE, a worldwide partner of the Olympic Games, exceeded its sales goal for the Beijing 2008 Olympic Games, winning 400 infrastructure projects in and around Beijing that generated around $700 million in revenues. Together with NBC Universal, which surpassed a record of more than $1 billion in advertising revenue, the Beijing Games were the most successful Games in the company’s history.

Visit the top 8 TV moments of the Olympics.

2. Economic stormclouds’ green lining

GE had many milestones this year in ecomagination:

• declaring that revenues from its range of energy efficient and environmentally advantageous products and services will surge 21 percent to $17 billion in 2008;
• unveiling a new company water commitment to reduce water use and improve water reuse of 20 percent by 2012; and
• announcing the second only leader for ecomagination – Steve Fludder who has held multiple leadership roles across various GE businesses in Asia Pacific, the US and the Middle East.

 
Read the GE Reports story.

3. GE healthcare bridges the digital divide

In November, GE unveiled a strategy including three initiatives that tackle the most difficult issue facing the healthcare system today: globally accessible, low-cost delivery of high-quality care. The initiatives included:

• Digital from Day One – This initiative highlights our commitment to growth in global and emerging markets as well helping our U.S. customers optimize their design, operations and clinical technology.
• GE Unites with Leading Academic Centers to Develop for Virtual Publishing – GE, Intermountain and Mayo Clinic are partnering to develop the first ever near real-time access to diagnostic, research and treatment discoveries to ensure very patient benefits from the most current medical breakthroughs.
• Customer Collaboration Framework – These segments were focused on our ongoing work with key customers to drive best practices and connectivity between today’s disparate healthcare IT systems.

 
4. GE simplifies to capture growth

In July, GE simplified the company, moving from six segments to four for a stronger market focus, efficiency and execution. The new structure highlights the company’s core areas of global infrastructure, media and finance. The segments include:

GE Technology Infrastructure – includes Healthcare, Aviation, Transportation and Enterprise Solutions businesses designed to leverage technology, software and engineering.

GE Energy Infrastructure– includes Energy, Oil & Gas and Water. These technologies already work together with large customers, particularly in emerging markets.

GE Capital – includes all the financial service businesses including Commercial Finance, GE Money, industry verticals (GECAS, Energy Financial Services), and Corporate Treasury.

NBC Universal – One of the world’s leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience.

In November, GE announced a new GE Capital organization structure that is effective on January 1, 2009 and is designed to strengthen our liquidity profile.

Read what the media said about the reorganization:
* Reuters
* New York Times
* Bloomberg
* Business Week

5. GE energizes Iraq with $3 billion deal

On December 16th GE Energy signed a $3 billion agreement with Iraq’s Ministry of Power & Energy to provide power generation equipment to a country whose electricity demand is nearly double its supply. GE’s machinery will provide up to 7,000 MW to Iraq’s grid to reduce the occurrence of blackouts and make electricity more easily available to a nation eager to rebuild their infrastructure.

Click here to see a video of GE Energy Infrastructure’s CEO, John Krenicki, announcing the deal live from Baghdad, Iraq, as well as some coverage of the deal.

6. Partnership with Mubadala

In July, GE announced an exciting, new partnership with Mubadala Development Company, a Public Joint Stock Company headquartered in Abu Dhabi. GE and Mubadala have created a joint venture that combines everything from renewable energy research and commercial finance to aviation and corporate learning. This collaboration will create new growth opportunities in the Middle East, an important growth market with the need for infrastructure, finance and media, and beyond. The relationship is a great example of GE’s partnership strategy and global focus.

Check out our online press room for videos, coverage, and photos related to this landmark agreement.

7. First Quarter 2008 Earnings Miss

GE reported earnings results in 1Q 2008 that were below provided guidance. GE’s 1Q 2008 earnings from continuing operations were $4.4 billion or $.44 per share, down 11% from first-quarter 2007. First-quarter revenues from continuing operations were $42.3 billion, up 8%.

We turned in a mixed performance in an environment that got tougher in the final weeks of the quarter. Demand for our global infrastructure business remained strong, but our financial services businesses were challenged by a slowing U.S. economy and difficult capital markets.

* Read the press release
* Listen to the audio presentation

8. Launch of Hulu.com

In March 2008, NBC Universal partnered with News Corp. to launch Hulu.com, an online video service that offers hit TV shows and movies for free, anytime in the U.S.

On Hulu.com, consumers can enjoy one of the largest selections of legal, free videos from more than 50 top broadcast networks, cable networks, move studios and more – giving consumers premium video content when, where and how they want it.

* See the media’s response to this service
* Read the public launch press announcement

9. GE raises $15 billion

On October 21, GE sold $3 billion of perpetual preferred stock in a private offering to Berkshire Hathaway, Inc. The perpetual preferred stock had a dividend of 10% and was callable after three years at a 10% premium. We offered shares of GE stock to raise more capital in response to the unprecedented volatility in financial markets.

In conjunction with this offering, Berkshire Hathaway also received warrants to purchase $3 billion of common stock with a strike price of $22.25 per share.

Berkshire Hathaway Chairman and CEO Warren Buffett said, “GE is the symbol of American business to the world. I have been a friend and admirer of GE and its leaders for decades. They have strong global brands and businesses with which I am quite familiar. I am confident that GE will continue to be successful in the years to come.”

The company also raised an additional $12 billion through a common equity offering, generating a total of $15 billion of new capital to strengthen the balance sheet in a challenging environment.

* Read the press announcement

10. GE secures its future with Financial Services

One major theme for the company was safety and security – demonstrating throughout the year how GE protected the company during the current economic crisis as well as differentiate GE’s financial services model from other companies. Some of the key actions the company took during the year included:

• Reaffirmed Triple A Credit rating – we continue to have an unwavering commitment to maintaining our Triple A and Standard’s and Poors and Moody’s
• Confirmed the dividend remains unchanged
• Supported the Federal Reserve Commercial Paper Funding Facility to help unlock the credit markets
• Mapped a future for its Capital business stating it plans to make $5 billion in 2009
• Reinforced its leadership and growth through a reorganization of our Capital business to focus on growth.