GE Reports 2Q’12 Operating EPS $0.38 +12%; Indus

2Q 2012 Highlights

· Ninth consecutive quarter of strong operating earnings growth

2Q Operating EPS of $0.38, up 12%

2Q Continuing EPS of $0.34, up 3%

· YTD orders up 8%, 2Q Infrastructure orders, down 1%, up 1% excluding FX

· Total Revenues of $36.5 billion, up 2%

FX negatively impacted revenues by $0.9 billion

GE Capital revenues down 8% driven by planned shrinkage

· Executing on our growth strategy

Industrial growth market orders up 14%, revenues up 17%

Energy segment profit up 15%, Oil & Gas up 11%, Transportation up 58%

· GE Capital earned $2.1 billion, up 31%, returned $3 billion to parent; Tier One Common at 10.1%

· No change in company outlook; on track to deliver on double-digit earnings growth in 2012

FAIRFIELD, Conn. – July 20, 2012 – GE [NYSE: GE] announced today second-quarter 2012 Operating Earnings of $4.0 billion, or $0.38 per share, up 7% and 12% respectively from the second-quarter of 2011. GAAP earnings from continuing operations (attributable to GE) were $3.7 billion, up 2%, or $0.34 per share, up 3%. Revenues were $36.5 billion for the quarter, up 2%. Industrial segment revenue grew by 9%, with organic growth of 10%. The strength of GE’s Industrial portfolio was underscored by strong segment profit increases in Energy, Oil & Gas and Transportation. The company is performing well and is on track to deliver double-digit earnings growth in 2012 for both Industrial and GE Capital segments.

“Today’s results demonstrate that we are executing on our growth strategy in the midst of a still volatile global economy,” said GE Chairman and CEO Jeff Immelt. “GE Capital’s strong operating performance and capital position allowed it to return a $3 billion dividend to the parent, and our Industrial segments delivered another quarter of double-digit organic revenue growth. Our strategy to invest in growth markets is paying off, as we achieved orders expansion in growth markets of 14% and revenue growth of 17%. We ended the quarter with a record backlog.”

Infrastructure orders were $23.1 billion, down 1% primarily driven by a 37% decrease in orders for wind turbines. Orders were up 8% on a year-to-date basis. Total orders performance included: Aviation up 5% and Transportation up 2%. Orders for the quarter included: GE Transportation orders for 176 locomotives from railroad customers in North America, up 28% from second-quarter 2011. In Australia, GE Energy is supplying 5 Frame 6B gas turbines, 3 SC4 single-flow steam turbines and 5 heat recovery generators to provide 500 megawatts of installed power capacity for a combined cycle power plant for the Ichthys liquefied natural gas (LNG) project. It will enable the facility to produce more than 8 million tons of LNG each year. In Russia, GE Energy signed a deal with REP Holding for the assembly of 28 GE MS 5002E gas turbines.

Total revenues for the quarter were $36.5 billion, up 2%. Revenues were negatively impacted by $0.9 billion due to FX and further shrinkage of our GE Capital business. GE’s second-quarter Industrial segment revenues were $25.0 billion, up 9%. Industrial segment organic revenues were up 10% for the quarter. Industrial growth market revenues were up 17%, driven by double-digit growth in Australia, Canada, China, Latin America, the Middle East/North Africa, Southeast Asia and Russia.

Industrial segment profit was up 7% to $3.7 billion and segment operating profits were strong in Energy Infrastructure and Transportation, up 13% and 58%, respectively. In addition, pricing on orders was up 1.2% in total with higher prices in 4 out of 5 businesses. Energy Infrastructure pricing was up 1.8%. Cash generated from operating activities was up 55% at $6.8 billion. GE ended the quarter with $74 billion of consolidated cash and cash equivalents.

Immelt concluded, “Our Industrial outlook remains positive. Margins have stabilized and Energy, Oil & Gas, and Transportation performed very well with double-digit profit increases. We are confident in our double-digit EPS growth expectations for 2012 and are raising our operating cash expectations to $17-19 billion based upon the restart of the GE Capital dividend.”

Second-quarter Highlights:

Second-quarter operating earnings were $4.0 billion, up 7% from second quarter 2011 and operating EPS was $0.38, up 12% from $0.34 in the second quarter of last year. GAAP earnings from continuing operations (attributable to GE) were $3.7 billion, up 2%, or $0.34 per share, up 3% from the second quarter of 2011.

Including the effects of discontinued operations, second-quarter net earnings attributable to GE were $3.1 billion ($0.29 per share attributable to common shareowners) in 2012 compared with $3.7 billion ($0.35 per share attributable to common shareowners) in the second quarter of 2011. Discontinued Operations included $0.05 per share of charges primarily related to WMC and GE Money Japan reserve adjustments. Positive one-time tax items of $0.02 per share were offset by $0.02 per share of restructuring and other charges.

Second-quarter revenues increased 2% to $36.5 billion. Industrial sales of $25.1 billion increased 9% versus the second quarter of 2011. GE Capital (GECC) revenues of $11.5 billion decreased 8% from last year, driven by lower assets in-line with plan.

Cash generated from GE operating activities in the first six months of 2012 totaled $6.8 billion, up 55% from $4.4 billion last year. Cash generated from GE Industrial operating activities in the first six months of 2012 totaled $3.8 billion, down 13% from last year.

The accompanying tables include information integral to assessing the Company’s financial position, operating performance and cash flow.

GE will discuss preliminary second-quarter results on a Webcast at 8:30 a.m. ET today, available at www.ge.com/investor . Related charts will be posted there prior to the call.

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About GE

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Caution Concerning Forward-Looking Statements:

This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in the European sovereign debt situation; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (GE Money Japan); pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level; GECC’s ability to pay dividends to GE at the planned level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; strategic actions, including acquisitions, joint ventures and dispositions and our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.