GE 2010 Annual Report Download - page 5

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GE 2010 ANNUAL REPORT 3
our growth in Energy, Aviation, Healthcare and Transportation
and supply important infrastructure in those countries. GE’s
unique breadth and compliant culture are massive advantages
in globalization.
We know how to compete, manufacture and execute. We
have a strong culture of productivity and risk management.
We constantly share ideas across GE on processes to improve
performance. We have reduced our manufacturing cycle
time and boosted productivity. We have been able to invest in
the United States even as we have globalized. Since 2009,
we have announced 6,300 new American manufacturing jobs.
At the same time, we are building capability around the world.
We are prepared for a future fueled by human innovation,
not cheap labor.
We are a catalyst for change—change that benefits our
customers and society. We have had a long-term focus on
clean energy through our ecomagination initiative. Last year,
when it was clear that U.S. energy policy would remain uncertain,
we continued to invest. One focus was to lead in Smart Grid
development. To that end, we announced plans to order
25,000 electric vehicles (EVs)—the largest such purchase in
history. By so doing, we took a large step toward building
EV infrastructure based on GE technology. In addition, we hosted
a “Smart Grid Challenge,” where we solicited ideas for clean-
energy solutions. More than 4,000 ideas were submitted, and
we funded 20 startup companies and entrepreneurs who
will extend our leadership in energy efficiency.
LETTER TO SHAREOWNERS
Some people remain cynical about business. And we live
in an era where anger often trumps optimism. Despite this,
GE has remained a competitive growth company; a positive force
for change.
FINANCIAL PERFORMANCE IS ACCELERATING
Our earnings growth should exceed the growth in the S&P 500.
We are committed to a dividend yield that is attractive relative to
our peers and other investments. We have more cash and lower
leverage than our historical average. We will improve our earnings
quality, which is associated with above-market valuation.
Earnings growth resumed in 2010 and should continue in 2011.
As we predicted last year, GE Capital’s earnings are rebounding
rapidly. It earned $3.3 billion, more than twice than in 2009.
And that positive course should continue in 2011. We remain
committed to a smaller, more focused GE Capital. We look for
significant earnings growth over the next few years.
The landscape for financial services has changed.
GE Capital—like others in financial services—will be more highly
regulated. We have been preparing for this outcome for the
past two years and are ready for the new regulatory environment.
For example, our Tier 1 capital, an important measure
of financial strength, is close to 9%, already above the “well
capitalized level” set currently by regulators at 6%.
ENTERPRISE VALUE
GE is an innovative, high-tech
infrastructure and financial services
company that solves tough global
challenges for customers & society, while
delivering world-class performance.
FINANCIAL STRENGTH
LARGE-SCALE INNOVATION
SAFE GLOBAL INVESTOR
COMPETITIVE CULTURE
CATALYST FOR CHANGE
Infrastructure Specialty
Finance
LEADERSHIP PORTFOLIO